Data mining for hotel occupancy rate: An independent component analysis approach

Edmond H.C. Wu, Chun Hung Roberts Law, Brianda Jiang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

14 Citations (Scopus)


The recent global financial crisis and the threat of a worldwide H1N1 influenza epi- demic have greatly affected the tourism and hospitality industries around the world. Both hospitality practitioners and researchers are interested in finding analytical methods that enable forecasts to be made of hotel room demand under the uncertain conditions likely to affect the industry. In this article, a novel data mining technique called independent component analysis (ICA) is proposed to establish the major factors determining the hotel occupancy rate in Hong Kong. Then, extension of the model is suggested, incorporating these factors to decompose hotel occupancy rates and examine the effect of each factor on the hotel occupancy rate. Empirical findings show that outbreaks of infectious diseases, economic performance, and service price were the major determinants of the hotel occupancy rate in Hong Kong over the period studied.
Original languageEnglish
Pages (from-to)426-438
Number of pages13
JournalJournal of Travel and Tourism Marketing
Issue number4
Publication statusPublished - 1 Jun 2010


  • Financial crisis
  • Hotel occupancy rate
  • Independent component analysis
  • Infectious diseases
  • Service price

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management
  • Marketing

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