The Impact Of The COVID-19 Pandemic On Hotel Price

The COVID-19 that broke out at the end of 2019 has caused a serious impact on the tourism industry,and has also brought an unprecedented blow to the hotel industry,one of the three pillar industries of the tourism industry.The hotel occupancy rate and hotel revenue have significantly decreased.The COVID-19 has posed a major challenge to the survival and development of hotel enterprises.Hotel prices are related to the booking intentions of potential consumers and the profitability of hotels.Therefore,exploring the impact of the COVID-19 on hotel prices is of great significance to consumer behavior,price formulation of operators and crisis management of market management departments.Based on the price equilibrium theory and the signal theory,this paper regards the outbreak of COVID-19 as a natural experiment,and uses the difference-in differences to explore the impact of COVID-19 on hotel prices.First,it studies whether the COVID-19 has an impact on hotel prices,and then it studies the impact of COVID-19 on hotel prices as time,space and hotel stars change.The results show that the outbreak of the COVID-19 epidemic has a negative correlation with hotel prices;The impact of the COVID-19 epidemic on hotel prices began to be significant on the third day after the outbreak of the epidemic,and continued to be insignificant on the twelfth day,and this time heterogeneity is closely related to the number of newly confirmed cases and the number of medium risk areas every day;The impact of the COVID-19 on hotel prices is not significant for hotels within 10 km from the medium risk area,significant for hotels between 10 km and 30 km,and insignificant for hotels beyond 30km;The impact of the COVID-19 on hotel prices is significant in economic and three-star hotels,but not significant in four-star and five-star hotels.This study provides evidence for the impact of the COVID-19 epidemic on hotel prices,and provides valuable reference for hotel enterprises and market management departments to make decisions.