The objective of this study was to propose and test a methodology that allow destination managers and hoteliers
improve the allocation of resources. For this purpose, this paper analysed the impact of both establishment (e.g.
category, size and location) and assessment variables of services included in hotel room prices using hedonic
price regression and geographically weighted regression (GWR). The data were collected in the low season using
TripAdvisor and Google Maps for 57 hotels located in Malaga. Analyses showed that spatial correlation creates
different patterns of quality-value perceptions within the same city, which is an advance in the knowledge about
the hotel location decision–making processes and their implications on destination marketing. These competitive
subsystems cannot be detected with the use of ordinary least squares alone. Although the values extracted using
a hedonic price model are consistent with the previous literature, the presence of geographic variability in the
estimated hedonic model coefficients might be misleading for some hotels. The fitting coefficient of the GWR
confirms the need to incorporate GWR into hedonic price models.
