Short-term hotel room price effects of sporting events

Abstract

A difference-in-differences analysis is used to investigate the short-term price effects of eight sporting events in Finnish Lapland. Data consist of 220,000 room bookings from the reservation system of a nine-hotels chain. Treated hotels are those located within an area where sporting events are regularly held. The control group consists of hotels further away that are not affected by the event. Robust regressions show that hotel room prices rise by 14% on average during the event, when booking and guest specific factors are held constant. For the pre-event period, no significant positive price effect can be detected, and for the post-event period, there is even a significant negative effect of 6%, on average. In addition, there is a large variation in the price effects across the different sporting events, with the highest for the Levi FIS Alpine Ski World Cup competition (60%) and no effect for some small-scale events. Quantile regressions show that price effects are slightly higher for high-priced than for low-priced rooms.

Investigating the impact of large-scale exhibitions on hotel room rates from a spatial-temporal perspective: a case of the Canton Fair in China

“…But, the other events had no discernible effect. Falk and Vieru (2021) also discovered that there was a large variation across different sport events regarding their influence on hotel room rates. Herrmann and Herrmann (2014) pointed out that the room rate differences probably were because of the hotel star classification and the proximity to the event venue.…”

“…For example, Barreda et al (2017) found that all hosting cities in Brazil for 2014 FIFA World Cup experienced an increase in hotel room rates during the event. Falk and Vieru (2021) further discovered that hotel room rates rose on average of 14% during an event. No significant positive effect of the event was identified on the hotel rates during the pre-event period, and a significant negative effect of 6% was found after the event.…”

“…This study advanced the hotel studies by empirically identifying the external influencing factors, such as exhibitions, and the location of convention centers, on hotel room rates and warranting more accurate development of hotel pricing models. In addition, previous studies only focused on the temporal change of hotel room rates as being affected by events (Falk and Vieru, 2021; Herrmann and Herrmann, 2014). Spatial change of hotel rates was neglected.…”

Team Visibility and City Travel: Evidence From the UEFA Champions' League Random Draw

“…Stephenson, 2018). The effects after the event are small and sometimes negative (as after winter games in Lapland: Falk and Vieru, 2020). Chikish et al (2019) use NHL and NBA unexpected lockouts as natural experiments to study the effect of sports matches on hotel occupancy around a large sports arena in L.A. Their results indicate that these stoppages had if anything a positive effect on the hotels in the area.…”

“…the study of hotels in Charlotte, NC: Depken & Stephenson, 2018). The effects after the event are small and sometimes negative (as after winter games in Lapland: Falk & Vieru, 2020). Chikish et al (2019) use NHL and NBA unexpected lockouts as natural experiments to study the effect of sports matches on hotel occupancy around a large sports arena in L.A. Their results indicate that these Residualized arrivals in January-June on routes across cities taking part to the Champions' League group phase in the following September-December (1998-2010.…”