Proceedings of The International Conference on Applied Research in Business, Management and Economics
Entropy of Tourism: the unseen side of tourism accommodation
Miguel Ángel Ruiz Reina
The measurement of random situations is a relevant fact within the field of Econometrics. In the usual practice of the field of Econometrics assumptions are made about the statistical distributions of the data. In this paper, a concept from Physics is introduced, specifically the use of Entropy as an explanatory factor in the decision-making of tourist accommodation in apartments. The emergence of a concept called Sharing Economy has made the housing market to evolve. Assuming a direct competition against traditional accommodation such as hotels. For this, the Entropy time series have been calculated and defined for the periods between January 2005 and August 2018, to forecast and compare them with a time horizon of 12 months with the most usual predictive models. To carry out the forecast comparisons, we work with the new Matrix U1 Theil which allows quantifying the gain of the use of the Entropy models. The main locations in which the study has been applied are Spain, Catalonia and Barcelona. The theoretical implications and economic consequences are relevant for stakeholders in decision- making. The study details the relations of exchange in the decision making of accommodations in tourist apartments and details the relationship of exchange in situations of uncertainty with a high explanatory capacity of the models.
Keywords: Forecasting, Tourism Demand, Behavioural Economics, Entropy, Randomness.