Resumen de Input-output price model as an analytical tool for hotels: The case of a business hotel in spain
Casiano Manrique de Lara Peñate, Raimundo Viejo Rubio
This article applies the input-output price model to assess the economic impact of changes in the cost structure of a hotel. We use the cost structure that emerges from the enterprise input-output table to define the price model of the operational departments of the company. This price model, together with a calibrated iso-elastic demand function helps to analyse the effects of changes in the cost structure of the hotel on its own prices, its gross operating surplus and its sales. We employ the financial and accounting data from a Galician (Spain) business hotel for the year 2012. To the best of our knowledge, this is the first time that an input-output price model has been applied to a hotel enterprise inputoutput table. The model presented can be easily expanded to cope for analogous simulations for hotel chains that need to take pricing decisions considering the different cost structures of their hotels.