Price of location: The Private versus Commercial Accommodation

This book investigates the relationship between the location and the price of short-term accommodation in context of European metropolitan cities. We employ the econometric OLS regression with log-level functional form to estimate the influence of main determinants on the price of the accommodation. We compare hotels and apartments in determined cities. We find out that there is a negative relationship between the distance from the city centre and the price of the accommodation. Our model determines the exact rate of drop in prices due to increasing proximity from the city centre. Furthermore we find distance from the metro station and presence of Wi-Fi in the rooms as insignificant factors for our sample. Finally we explore that people’s perception of the metro station is stable with changing proximity from the city centre. In conclusion we provide suggestions for further research based on our analyses.