Exploring customer experience with budget hotels: Dimensionality and satisfaction

The budget hotel sector in China has rapidly developed in the past decade. However, very little is known about consumer behavior in this sector. This exploratory study addresses this knowledge gap by adopting a mixed method of in-depth interviews and questionnaire survey. It specifically aims to explore the dimensionality of customer experience with budget hotels and to further examine the influencing factors for customer satisfaction. The results of exploratory factor analysis reveal four factors or dimensions of customer experience, namely, tangible and sensorial experience, staff aspect, aesthetic perception, and location. Multiple regression analysis shows that these four factors significantly influence customer satisfaction in a positive manner.