Snow conditions affect hotel bookings and cancellation behaviour

Theme 1. Environmental protection
Session Name 1.7 Arctic tourism and global change
Presentation Type Oral
Presenter
Author(s) Martin Falk (Austrian Institute of Economic Research (WIFO), Austria), Markku Vieru (University of Lapland, Finland)
Abstract text

In the Arctic region, winter tourism is at the core of climate change research. The aim of this study is to discover new empirical evidence on the impact of snow conditions on bookings and cancellations of hotel rooms, based on unique data from a hotel booking system. This system covers nine hotels and approximately 250,000 bookings. Probit estimations show that snow depth and temperatures just before the expected arrival date are significant determinants of the cancellation behaviour in the late winter season (April). This holds true also for domestic guests and for those coming from the neighbouring countries (Russia, Sweden and Norway). In addition, the estimates demonstrate that the probability of last-minute domestic bookings increases when the snow supply is good, in the early as well as in the late season. Thus, the sensitivity to snow conditions and temperatures of booking and cancellation behaviour depends on the country of origin and on the type of guests and therefore implicitly also on the travel motivation.

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