Despite the existence of several weather studies in the tourism literature, there remain some gaps in knowledge. Uncertainty about weather conditions persists despite the impressive improvements in modern forecasting techniques. This study is a first attempt to investigate how weather uncertainty affects tourism demand. The findings indicate that the impact of weather on tourism demand is likely to grow with the increasingly “uncertain” nature of weather with regard, for example, to temperature and rain.
27 October 2022 in Journal of Hospitality and Tourism Management
Are museums, galleries and cultural institutions (MGC) educational institutions or accommodations of leisure market? The aim of the present study is to understand why people visit MGCs through analysing a potential link between internet use types and MGC visits. Internet use is categorized into three types: independent activities, recreational activities and social activities. The empirical results indicate that internet use for recreational activities is negatively related to MGC visits, while internet use for independent activities is positively related to MGC visits. The findings suggest that MGCs are expected to provide visitors with educational experience rather than with social or recreational experience.
This paper empirically studied how Airbnb supply and business cycles affected the price elasticity of room demand (PED) in the hotel industry. Economic theory points out that demand becomes more elastic as there exist more close substitutes in the market. Moreover, market elasticities can vary either procyclically or countercyclically across the business cycles. Using monthly operation data of Taipei's international tourist hotels (ITHs) from 2009 (debut of Airbnb in Taipei) to 2016 and exploiting a Markov regime-switching model, this study finds that total listings of Airbnb were positively associated with PED during the peaks (i.e. high price elasticity of demand). Thus, the Airbnb supply posed a substitution threat to the hotel industry in Taipei. For the effect of business cycles, this study found that elasticities of room demand exhibited a countercyclical nature in the Taipei ITH market.
This paper empirically examines the relationship between service quality and market structure using metropolitan-level panel data from the Taiwanese hotel industry. The empirical results indicate, first, that the influence of market structure on room service quality is U-shaped – high and low levels of market concentration lead to better service quality; and, second, that market structure is positively associated with food and beverage service quality.
This paper empirically studies the role played by advertising on the price elasticity of lodging demand in the Taiwanese hotel industry. There are two theoretical views regarding the role of advertising. The persuasive view emphasizes that advertising creates brand royalty and reduces customers' price sensitivity. By contrast, the presumptive view is that advertising lifts marginal consumers' willingness to pay, flattens the demand curve and increases the equilibrium price elasticity. Using data from operation reports of Taiwanese international tourist hotels during 1995–2008, an ordinary least squares (OLS) analysis finds that advertising reduces consumers' price sensitivity. However, the quantile regression results suggest that the change in price elasticity generated by advertising is of an unequal pattern. In other words, the influence of advertising on price elasticity exists but varies by the level of price elasticity. The authors also examine empirically the moderating influence of advertising on the pricing strategy–hotel performance link. The estimation results indicate that the interaction term of room rate and advertising expenditure has a positive effect on room revenue. The results lend some support to the view that advertising has a moderating influence on the relationship between hotel price and financial performance.