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Determinants of hotel room price An exploration of travelers' hierarchy of accommodation needs

Determinants of hotel room price An exploration of travelers' hierarchy of accommodation needs Purpose – This study aims to examine whether and how hotel class, attributes of the room, quality, location, cleanliness, and service influence room rates in hotels. Design/methodology/approach – Regression models were developed for the hotel industry and for various grades of hotels. Findings – Using data from New York, empirical findings suggest that room quality and location are important determinants of room price for the industry, but attributes that can influence room rates differ greatly among hotel segments. Practical implications – Hotels can reap benefits from understanding customers' specific expectation of a market segment and seeking to provide amenities accordingly. Originality/value – The quality of hotel attributes is evidenced through customer reviews on a travel advice website. The theory of the hierarchy of needs is supported in the hotel industry, namely, the ascending order of accommodation needs are the quality of a room, location, and service. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Contemporary Hospitality Management Emerald Publishing

Determinants of hotel room price An exploration of travelers' hierarchy of accommodation needs

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
0959-6119
DOI
10.1108/09596111111167551
Publisher site
See Article on Publisher Site

Abstract

Purpose – This study aims to examine whether and how hotel class, attributes of the room, quality, location, cleanliness, and service influence room rates in hotels. Design/methodology/approach – Regression models were developed for the hotel industry and for various grades of hotels. Findings – Using data from New York, empirical findings suggest that room quality and location are important determinants of room price for the industry, but attributes that can influence room rates differ greatly among hotel segments. Practical implications – Hotels can reap benefits from understanding customers' specific expectation of a market segment and seeking to provide amenities accordingly. Originality/value – The quality of hotel attributes is evidenced through customer reviews on a travel advice website. The theory of the hierarchy of needs is supported in the hotel industry, namely, the ascending order of accommodation needs are the quality of a room, location, and service.

Journal

International Journal of Contemporary Hospitality ManagementEmerald Publishing

Published: Oct 4, 2011

Keywords: Hotels; Room rates; Hedonic pricing; Accommodation needs; Word‐of‐mouth; United States of America

References