engleski

Sailboat Rental: Determining the Price Based on Its Attributes

This article examines the effect on price of different characteristics of sailing boats in the nautical segment of travel and tourism industry. The effect on price is estimated under the hedonic function by means of ordinary least squares model (OLS), as the data used in the study are cross-sectional. Some 10 791 prices were gathered from approximately 400 sailboats from adriatica.net, a largest website for renting travel/tourism products in Croatia. The study reveals huge price differences between sailboats of different size, coupled with practically no differents between boats of the same size but different brand. Other attributes with a significant effect on price are season, number of rental days, ship length, number of cabins, year of production, skipper, and number of persons. The resulting equation can assist charter companies in shaping inflation-proof pricing and investment strategies.

Pricing; hedonic functions; sailboats; ordinary least squares model; Croatia

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