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The Impact of Gasoline Price Fluctuations on Lodging Demand for US Brand Hotels
Articles and Chapters
  • Kate Walsh, Cornell University
  • Cathy A Enz, Cornell University School of Hotel Administration
  • Linda Canina, Cornell University
Publication Date
12-1-2004
Abstract

Analyzing US brand hotels, over a 13-year period, this study provides empirical evidence of a significant negative relationship between gasoline prices and demand for certain lodging products, controlling for economic factors (i.e. gross domestic product and population density). Applying principles from microeconomic demand theory to the literatures on gasoline price elasticities, consumer demographics and lodging demand, a set of hypotheses were devised to test the relationship between gasoline prices and lodging demand for specific hotel locations and price segments. Using fixed effects models, the results reveal that lodging demand decreases as gasoline prices rise in all segments except upper-upscale and all locations except urban areas. Hotels in midscale without food and beverage and economy market segments, in resort, suburban and highway locations, exhibit the greatest association between gasoline price shifts and demand. Implications of these findings are discussed for both hospitality research and practice.

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Required Publisher Statement
© Elsevier. DOI:10.1016/j.ijhm.2004.02.004. Final version published as: Walsh, K., Enz, C. A., & Canina, L. (2004). The impact of gasoline price fluctuations on lodging demand for US brand hotels. International Journal of Hospitality Management, 23(5), 505-521. Reprinted with permission. All rights reserved.

Citation Information

Walsh, K., Enz, C. A., & Canina, L. (2004). The impact of gasoline price fluctuations on lodging demand for US brand hotels. [Electronic version]. Retrieved [insert date], from Cornell University, School of Hotel Administration site: http://scholarship.sha.cornell.edu/articles/579