Determining guests’ willingness to pay for hotel room attributes with a discrete choice model

Masiero, Lorenzo ( School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong / College of Charleston Charleston, SC, USA) ; Heo Yoonjoung, Cindy ( Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland) ; Panc, Bing ( College of Charleston Charleston, SC, USA)

Hotel managers need to understand the marginal utility customers associate with a specific attribute ofa hotel in order to effectively set up rate fences and to price their rooms accordingly. This study adopteda stated choice experiment and discrete choice modeling method to obtain hotel guests’ willingness topay (WTP) for a specific set of room attributes within a single hotel property. The attributes include roomviews, hotel floor, club access, free mini-bar items, smartphone service, and cancellation policy. The studydiscovered that leisure travelers versus business travelers, and first-time visitors versus repeat visitors,perceive different WTP values for various attributes. These findings provide valuable information for hotelmanagers to segment their market and conduct revenue management practices in order to maximizerevenue and profit. The results also demonstrate the value of discrete choice modeling in obtaining WTPfor hotel room attributes.


Type d'article:
scientifique
Faculté:
Economie et Services
Ecole:
EHL
Classification:
Economie/gestion
Date:
2015
Publié dans
Journal of hospitality management
Numérotation (vol. no.):
August 2015, vol. 49, pp. 117-124
DOI:
ISSN:
0278-4319
Le document apparaît dans:

Note: The status of this file is: restricted


 Notice créée le 2015-10-01, modifiée le 2018-12-05

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