Article ID Journal Published Year Pages File Type
1009758 International Journal of Hospitality Management 2012 10 Pages PDF
Abstract

This study investigated factors that influence consumer purchasing decisions for two hotel segments: full-service and limited-service. Results from an online survey indicated that full-service hotel guests were more likely to be reward program members and be emotionally attached to their preferred brand. Price was the most important factor for limited-service guests’ purchase decisions, while both price and utility were important for full-service guests. Limited-service guests had lower switching costs, that is, they required less of a discount to switch to a non-preferred brand than full-service guests. The findings have implications for hotel pricing and marketing strategies.

► An online survey compared patrons of full-service and limited-service hotels. ► Full service guests are more often reward members and belong to higher tiers. ► Full service guests have greater commitment to their preferred brand. ► Hotel choice is influenced most strongly by price, utility, brand, and amenities. ► Limited-service guests are more susceptible to discounts offered by competitors.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Strategy and Management
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