IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v14y2024i8p1259-d1446694.html
   My bibliography  Save this article

Hedonic Pricing Models in Rural Tourism: Analyzing Factors Influencing Accommodation Pricing in Romania Using Geographically Weighted Regression

Author

Listed:
  • Marius-Ionuț Gordan

    (Faculty of Management and Rural Tourism, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania
    Doctoral School Engineering of Plant and Animal Resources, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

  • Valentina Constanța Tudor

    (Faculty of Management and Rural Development, University of Agronomic Sciences and Veterinary Medicine, 010961 Bucharest, Romania)

  • Cosmin Alin Popescu

    (Faculty of Agriculture, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

  • Tabita Cornelia Adamov

    (Faculty of Management and Rural Tourism, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

  • Elena Peț

    (Faculty of Management and Rural Tourism, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

  • Ioana Anda Milin

    (Faculty of Management and Rural Tourism, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

  • Tiberiu Iancu

    (Faculty of Management and Rural Tourism, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania
    Doctoral School Engineering of Plant and Animal Resources, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

Abstract

This study investigates the factors influencing pricing in Romanian rural tourism using a hedonic pricing model through a hybrid LASSO-OLS regression and geographically weighted regression (GWR). By analyzing data from 5028 unique accommodation units across 1170 local administrative units, we identify some key pricing determinants, including accommodation size, capacity, facilities, and environmental attributes. The results reveal that larger accommodations and those with higher guest capacities command higher prices. Luxurious facilities, such as massage services, pools, and fireplaces, significantly increase pricing, although the impact of such features varies by region, as do accommodation type and natural scenery, with agritouristic boarding houses and proximity to natural attractions like water bodies and forests being more valued in certain regions. These factors can aid rural entrepreneurs in optimizing pricing to enhance competitiveness and profitability.

Suggested Citation

  • Marius-Ionuț Gordan & Valentina Constanța Tudor & Cosmin Alin Popescu & Tabita Cornelia Adamov & Elena Peț & Ioana Anda Milin & Tiberiu Iancu, 2024. "Hedonic Pricing Models in Rural Tourism: Analyzing Factors Influencing Accommodation Pricing in Romania Using Geographically Weighted Regression," Agriculture, MDPI, vol. 14(8), pages 1-22, July.
    • Handle: RePEc:gam:jagris:v:14:y:2024:i:8:p:1259-:d:1446694
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/14/8/1259/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/14/8/1259/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Njegovan, N. & Demirovic, D. & Vasko, Z., 2018. "Selection and application of pricing strategies in rural tourism: the case of Vojvodina's farmsteads," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 4(1), pages 18-23.
    2. Isabel Vanslembrouck & Guido Van Huylenbroeck & J. Van Meensel, 2005. "Impact of Agriculture on Rural Tourism: A Hedonic Pricing Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 17-30, March.
    3. Loïc Lévi & Jean Jacques Nowak & Sylvain Petit & Hakim Hammadou, 2022. "Industrial legacy and hotel pricing: An application of spatial hedonic pricing analysis in Nord-Pas-de-Calais, France," Tourism Economics, , vol. 28(4), pages 870-898, June.
    4. Baldwin Tong & Ulrich Gunter, 2022. "Hedonic pricing and the sharing economy: how profile characteristics affect Airbnb accommodation prices in Barcelona, Madrid, and Seville," Current Issues in Tourism, Taylor & Francis Journals, vol. 25(20), pages 3309-3328, October.
    5. Cankun Wei & Meichen Fu & Li Wang & Hanbing Yang & Feng Tang & Yuqing Xiong, 2022. "The Research Development of Hedonic Price Model-Based Real Estate Appraisal in the Era of Big Data," Land, MDPI, vol. 11(3), pages 1-30, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anne-Kathrin LAST, 2008. "The Monetary Value of Cultural Goods: A Contingent Valuation Study of the Municipal Supply of Cultural Goods in Lueneburg, Germany," EcoMod2008 23800074, EcoMod.
    2. Jan-Peter Kucklick & Jennifer Priefer & Daniel Beverungen & Oliver Müller, 2023. "Elucidating the Predictive Power of Search and Experience Qualities for Pricing of Complex Goods – A Machine Learning-based Study on Real Estate Appraisal," Working Papers Dissertations 112, Paderborn University, Faculty of Business Administration and Economics.
    3. Ohe, Yasuo, 2008. "Evaluating the Diversifying Market for and Viability of Rural Tourism Activity in Japan," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43647, European Association of Agricultural Economists.
    4. Viglia, Giampaolo & Abrate, Graziano, 2017. "When distinction does not pay off - Investigating the determinants of European agritourism prices," Journal of Business Research, Elsevier, vol. 80(C), pages 45-52.
    5. Stephanie Truchet & Jean-Marc Callois & Francis Aubert & Virginie Piguet, 2011. "Amenities and location of hotels: a micro-economic model and estimations," ERSA conference papers ersa10p904, European Regional Science Association.
    6. Woojae Kim & Sungmin Ko & Myoungjin Oh & Ie-jung Choi & Jungwoo Shin, 2019. "Is an Incentive Policy for Energy Efficient Products Effective for Air Purifiers? The Case of South Korea," Energies, MDPI, vol. 12(9), pages 1-14, May.
    7. Elena Bykowa & Maria Skachkova & Ivan Raguzin & Irina Dyachkova & Maxim Boltov, 2022. "Automation of Negative Infrastructural Externalities Assessment Methods to Determine the Cost of Land Resources Based on the Development of a “Thin Client” Model," Sustainability, MDPI, vol. 14(15), pages 1-29, July.
    8. Olivier JOALLAND & Tina RAMBONILAZA, 2017. "Assessing the impact of renewable energy infrastructure on the “tourist value” in rural landscapes: a spatial hedonic approach," Cahiers du GREThA (2007-2019) 2017-10, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    9. Celia Bilbao-Terol & Verónica Cañal-Fernández & Luis Valdés & Eduardo Del Valle, 2017. "Rural Tourism Accommodation Prices by Land Use-Based Hedonic Approach: First Results from the Case Study of the Self-Catering Cottages in Asturias," Sustainability, MDPI, vol. 9(10), pages 1-17, September.
    10. Chaang-Iuan Ho & Tzong-Shyuan Chen & Chin-Pei Li, 2023. "Airbnb’s Negative Externalities from the Consumer’s Perspective: How the Effects Influence the Booking Intention of Potential Guests," Sustainability, MDPI, vol. 15(11), pages 1-28, May.
    11. Kolbe, Jens & Wüstemann, Henry, 2014. "Estimating the value of Urban Green Space: A hedonic pricing analysis of the housing market in Cologne, Germany," SFB 649 Discussion Papers 2015-002, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    12. Carr-Harris, Andrew & Lang, Corey, 2019. "Sustainability and tourism: the effect of the United States’ first offshore wind farm on the vacation rental market," Resource and Energy Economics, Elsevier, vol. 57(C), pages 51-67.
    13. Anne-Kathrin Last, 2007. "The Monetary Value of Cultural Goods: A Contingent Valuation Study of the Municipal Supply of Cultural Goods in Lueneburg, Germany," Working Paper Series in Economics 63, University of Lüneburg, Institute of Economics.
    14. Peter Howley & Stephen Hynes & Cathal O’Donoghue, 2009. "Countryside Preferences: Exploring individuals’ WTP for the protection of traditional rural landscapes," Working Papers 0906, Rural Economy and Development Programme,Teagasc.
    15. Czyżewski, Bazyli & Matuszczak, Anna & Czyżewski, Andrzej & Brelik, Agnieszka, 2021. "Public goods in rural areas as endogenous drivers of income: Developing a framework for country landscape valuation," Land Use Policy, Elsevier, vol. 107(C).
    16. Ohe, Yasuo, 2009. "Educational Function of Agriculture and Farm Diversification: Evidence from Dairy Farming Experience Services in Japan," 2009 Conference, August 16-22, 2009, Beijing, China 51557, International Association of Agricultural Economists.
    17. Bianca Biagi & Maria G. Brandano & Dionysia Lambiri, 2015. "Does Tourism Affect House Prices? Evidence from Italy," Growth and Change, Wiley Blackwell, vol. 46(3), pages 501-528, September.
    18. Hongbo Tan & Tian Su & Xusheng Wu & Pengzhan Cheng & Tianxiang Zheng, 2024. "A Sustainable Rental Price Prediction Model Based on Multimodal Input and Deep Learning—Evidence from Airbnb," Sustainability, MDPI, vol. 16(15), pages 1-22, July.
    19. Juan Luis Nicolau, 2021. "Editorial of the special issue on “Sports and Tourism: Economic Impactsâ€," Tourism Economics, , vol. 27(3), pages 415-418, May.
    20. Yasuo Ohe, 2012. "Evaluating Operators' Attitudes to Educational Tourism in Dairy Farms: The Case of Japan," Tourism Economics, , vol. 18(3), pages 577-595, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:14:y:2024:i:8:p:1259-:d:1446694. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.