How do Accommodation Prices Affect Tourism in Slovakia? Own Price and Cross Price Elasticity of Demand in the Regions of Slovakia
How do Accommodation Prices Affect Tourism in Slovakia? Own Price and Cross Price Elasticity of Demand in the Regions of Slovakia

Author(s): Elena Hoškova, Martin Richter, Iveta Zentkova
Subject(s): Business Economy / Management, Tourism
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Accommodation demand; Price; Own price elasticity; Cross price elasticity
Summary/Abstract: The chapter aims to determine the impact of accommodation prices on the demand for accommodation in individual regions of the Slovak Republic. The data for the analysis were drawn from the Statistical Office of the Slovak Republic for the period January 2017 to June 2023 from individual regions of the Slovak Republic. Regression analysis was used. The results showed that the most visited regions are Bratislava, Žilina and Prešov regions with very significant seasonality. The forecast assumed that seasonality would be maintained into the next period. The estimated regression functions of demand showed that the quantity demanded for accommodation responds statistically significantly to its price, especially in the Nitra region, and demand is price elastic here. According to the coefficients of the cross-price elasticity of demand, accommodation in the Trenčín region was a substitute for accommodation in other regions in the period under consideration. The analysis showed that the demand for accommodation is influenced not only by the tourist attractiveness of the area but also by the price of accommodation.

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