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Morgane Cure – "Price determinants and the effect of price parity in the hotel industry"
CREST Internal Seminar in Microeconomics :
Date: 03rd June 2019
Place: Room 3105.
Morgane Cure – “Price determinants and the effect of price parity in the hotel industry”
Abstract: Using an exhaustive database of bookings in 22 hotels of one large chain active in Scandinavia (2014-2015), we estimate a price equation and identify the main components among reservation and hotel characteristics that play a role in the hotel price setting. Especially, we show that the type of tariff chosen by consumers (refundable or not) and the type of contract between the hotel and the online travel agency play an important role in the so called price parity application : in our data, it is applied only for some tariff and some type of hotels; using this particular framework and a difference and difference estimation, we quantify the effect of a price parity application on the level of prices on the different hotels’ sales channel. Consistently with the very first theories of harm, we show a price increase of more than 10%. We finally confirm this result with a triple difference estimation. [On going work]
Alexis Larousse (CREST)
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