How Currency Exchange Rates Affect the Demand for U. S. Hotel Rooms
Corgel, John B.; Lane, Jamie; Walls, Aaron
This study addresses the question of how currency exchange rates affect aggregate hotel demand in the U.S. over time, among chain scales, and gateway cities. The effect is isolated after controlling for hotel room rates, real personal income, and other demand determinants. Exchange rates had a significant, although minor, influence on U.S. hotel demand from 1992 Q1 - 2012 Q1. Disaggregate analyses using data organized by time periods corresponding to Internet availability does not offer new insights about how exchange rates affect U.S. hotel demand. Analyses using chain scale and gateway city data, however, reveal that exchange rates strongly influence hotel demand in luxury, upper-upscale, and upscale segments, with a much weaker relationship among lower-price hotels. The exchange rate effect is strongest for upper-price hotels in gateway cities.
hotel demand; currency exchange rates; gateway cities
Required Publisher Statement: © International Journal of Hospitality Management. Final version published as: Corgel, J. B., Lane, J., & Walls, A. (2013). How currency exchange rates affect the demand for U. S. hotel rooms. International Journal of Hospitality Management, 35, 78-88. doi:10.1016/j.ijhm.2013.04.014Reprinted with permission. All rights reserved.