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

Ziqiong Zhang, Qiang Ye, Chun Hung Roberts Law

Research output: Journal article publicationReview articleAcademic researchpeer-review

134 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)972-981
Number of pages10
JournalInternational Journal of Contemporary Hospitality Management
Volume23
Issue number7
DOIs
Publication statusPublished - 1 Oct 2011

Keywords

  • Accommodation needs
  • Hedonic pricing
  • Hotels
  • Room rates
  • United States of America
  • Word-of-mouth

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management

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