Exploring the differences in hotel guests' willingness-to-pay for hotel rooms with different views

Kevin K.F. Wong, Seong Seop Kim

Research output: Journal article publicationJournal articleAcademic researchpeer-review

17 Citations (Scopus)

Abstract

This study investigates differential hedonic pricing in relation to the choice of different hotel room views and floors and attempts to find out the determinants of respondents' willingness-to-pay (WTP) based on the their sociodemographics, psychological inclinations, and other travel-related variables. The findings reveal significant differences between WTP amounts among hotel rooms with five different views. More specifically, this study found significant differences between WTP amounts for rooms on the 1st floor compared to those on the highest floor (20th floor) in a hotel. The results supported the rationale for setting up specific hedonic pricing strategies by hotel managers. Importantly, some significant determinants were obtained in predicting WTP amounts, providing a better understanding of how differential pricing strategies may be applied in the hotel industry.
Original languageEnglish
Pages (from-to)67-93
Number of pages27
JournalInternational Journal of Hospitality and Tourism Administration
Volume13
Issue number1
DOIs
Publication statusPublished - 6 Sep 2012

Keywords

  • Hedonic pricing
  • Room rates
  • Room view
  • Strategy
  • Willingness-to-pay

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management

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