Investigating the inter-departmental synergy in demand for rooms and auxiliary services: a spatial econometric approach

Abstract

This study investigates interdependence among hotel revenue centres, using dataset on room guests and customers of auxiliary departments in Seoul, Korea. Spatial econometric methods are applied to examine the causal relationships between demand for rooms and auxiliary facilities. Results suggest that while the room demand significantly contributes to demand for auxiliary services, the reverse does not hold.

Keywords:

• room demand
• auxiliary facilities
• inter-departmental synergy
• spatial econometrics

ORCiD

Mihae Oh http://orcid.org/0000-0002-8671-1887

Seul Ki Lee http://orcid.org/0000-0001-5216-9965

Jinhoo Kim http://orcid.org/0000-0003-1496-4532