The Effects of Gasoline-price Changes on Room Demand: A Study of Branded Hotels from 1988 through 2000
MetadataShow full item record
Canina, Linda; Walsh, Kate; Enz, Cathy A.
[Excerpt] As hoteliers have long suspected, gasoline-price increases do depress overall lodging demand, but not all segments feel the effects in the same way (and some not at all). “With gas prices at a premium this summer, every little bit helps,” proclaimed Wayne Wielgus, senior vice president of marketing for Choice Hotels, as he announced a gasoline price promotion in 2002. During that summer Choice Hotels gave its guests a $5 gas card when they booked in advance and stayed for a minimum of two nights at Comfort, Quality, Clarion, Sleep, or MainStay Suites properties. Choice planned to give away $2 million in free gasoline in response to the concern that consumers would stay at home as gasoline prices rose. This view that gasoline-price increases depress hotel bookings is shared by many. A 2001 study suggested that 14 percent of all travelers, or 19.2 million people, would travel less or cancel vacations because of rising fuel prices.
hospitality industry; hotel room demand; gasoline price; fluctuations
Required Publisher Statement: © Cornell University. Reprinted with permission. All rights reserved.