What affects hotel prices in India and USA?

What affects hotel prices in India and USA?

We analyzed the prices of 2559 hotels across 42 cities in India and 7 cities across USA for 8 days. The aim was to find out the which factors affect the hotel prices in India & in USA. 

How did we arrive at these results ?

The data about the hotels included a total of 9 factors ( variables) - 
Star Rating, Hotel Capacity, Weekend prices, Holiday prices, Free Wifi (Yes/No), Free Breakfast ( Yes/ No), Swimming Pool ( Yes/ No),  Tourist destination (Yes/No) , Country (India/ USA)

The following result (of regression analysis with log) can be used for predicting hotel prices in India & USA.

For India ( IsIndia = 1)

For USA ( IsIndia = 0)

Interpretation of Regression Analysis Results : 

Keeping all other variables constant

In US-

·        Hotels in the tourist destinations in general, charge 3.38% higher Room Rent.

·        Unit increase in star rating in general, increases the room rent by 45.59%.

·        Free Breakfast has a negative Impact on hotel prices by 8.3%.

·        Having a swimming pool increase the hotel price in general by 1.5%. 

 In India-

·        Indian hotels located in Tourist destinations charge 10% more.

·        During weekends Indian hotels charge 2.6% more rent.

·        Unit increase in star rating for an Indian hotel increases the hotel price by 17%.

·        Indian hotels charge 5% more for free breakfast.

·        Indian hotels charge 16.5% more for having swimming pools.

Additional : 

How to find best fit regression model ?
Using regsubsets function in R, we found out which variables constitute best fit regression model.