Determinant Factors Influencing Hotel Room Price in Vangvieng, Lao PDR: An Application of Hedonic Price Model.

Abstract

This study aims to examine how hotel room attributes, hotel services, and environment (located close to river) influence hotel room prices. The Econometric estimation using the semi-logarithmic form for the Econometric equation was applied. Data on hotel attributes, services, and environment were gathered from the “Agoda.com” website. The findings suggest that the room attributes include: room size, air conditioning, and balcony, can influence room prices. In addition, hotel services include: providing breakfast, spas and massage, allowing for pets and smoking also affect the room rates. Hotel environment such as locating close to a river also significantly increase Tourists’ willingness to pay. Hotels can strive benefits of understanding customers’ needs and expectation and provide services, products according to their needs.