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