Examining the hotel room supply and demand in Las Vegas: A simultaneous equations model

Ming Chih Tsai, Bomi Kang, Ronnie J. Yeh, Eunju Suh

Research output: Journal article publicationJournal articleAcademic researchpeer-review

21 Citations (Scopus)

Abstract

The Las Vegas Strip has seen astonishing tourism development in the 1990s. The study examined the inter-relationship between the room supply and demand functions, and room rate in Las Vegas employing econometric variables in a simultaneous framework during 1992-1999. The results suggest that room rate for the current month, the 3-month Treasury bill rate and gaming revenue per room for the 12-month prior are the three determinants of the room supply function, while consumer price index for the current month is the only determinant of the room demand function.
Original languageEnglish
Pages (from-to)517-524
Number of pages8
JournalInternational Journal of Hospitality Management
Volume25
Issue number3
DOIs
Publication statusPublished - 1 Sep 2006
Externally publishedYes

Keywords

  • Econometric
  • Las vegas
  • Room supply and demand
  • Two-stage least squares

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

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