Can setting hotel rate restrictions help balance the interest of hotels and customers?

Basak Denizci Guillet, Wei Liu, Chun Hung Roberts Law

Research output: Journal article publicationJournal articleAcademic researchpeer-review

9 Citations (Scopus)

Abstract

Design/methodology/approach – This study used a questionnaire as the data collection instrument. Conjoint analysis was applied to examine customers’ preferences regarding hotel rate fences. Findings – The results indicate that refundability, price and advance requirement, in that order, are identified as the most important attributes in the overall decision-making process of customers. Changes allowed and rule type are comparatively less important attributes. Research limitations/implications – This study extends the hotel revenue management literature by examining customer preferences for hotel rate restrictions based on their socio-demographic characteristics and travel behavior. This study also illustrates the usefulness of conjoint analysis in determining the utility values of hotel-room rates and rate fences. Practical implications – The findings of this study may help professional hoteliers to better understand customers’ decision-making process and underlying needs, thus helping them to design attractive rate fences that are in the interests of both hotels and customers. Originality/value – This study is the first to investigate customer preferences regarding hotel rate restrictions based on demographic and travel behavior information. The identification of these preference values should help hoteliers to identify the decision-making processes and needs of customers.
Original languageEnglish
Pages (from-to)948-973
Number of pages26
JournalInternational Journal of Contemporary Hospitality Management
Volume26
Issue number6
DOIs
Publication statusPublished - 1 Jan 2014

Keywords

  • Customer behavior
  • Hotels
  • Rates restrictions
  • Revenue management
  • Room rates
  • Tourism

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management

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