Strategic consumer behavior in online hotel booking

This study investigates strategic consumer behavior in online hotel booking. Free cancellation policies enable consumers to rebook the hotel room at a later time should the price drop prior to the date of stay. A discrete choice experiment is used to infer consumer preferences for free cancellation and non-refundable rates under different scenarios. The study also examines the moderating role of the risk attitude of consumers. Risk-seeking consumers show preference for a free cancellation rate that increases with the availability of an automatic rebooking service. Although a higher booking window increases the utility of the free cancellation rate, such impact decreases as risk propensity increases. The identification of four distinct consumer segments provides clear implications for industry practitioners.     

Does bureaucracy kill individual initiative? The impact of structure on organizational citizenship behavior in the hospitality industry

In their quest for improved service quality, hospitality organizations face a paradox. Standardization and centralization are generally perceived as essential to maintaining high service standards. These bureaucratic mechanisms, however, are suspected to have a negative impact on spontaneous “organizational citizenship” behaviors, which are equally essential for flawless service delivery. Empirical results from the Swiss hotel industry suggest that “helping” behavior is more widespread than “voice” behavior among hotel employees. The results also provide support for the hypothesis that “helping” and “voice” behaviors are negatively affected by a centralized organization structure. Theoretical and practical implications of these results are discussed.     

Using machine learning and big data for efficient forecasting of hotel booking cancellations

Cancellations are a key aspect of hotel revenue management because of their impact on room reservation systems. In fact, very little is known about the reasons that lead customers to cancel, or how it can be avoided. The aim of this paper is to propose a means of enabling the forecasting of hotel booking cancellations using only 13 independent variables, a reduced number in comparison with related research in the area, which in addition coincide with those that are most often requested by customers when they place a reservation. For this matter, machine-learning techniques, among other artificial neural networks optimised with genetic algorithms were applied achieving a cancellation rate of up to 98%. The proposed methodology allows us not only to know about cancellation rates, but also to identify which customer is likely to cancel. This approach would mean organisations could strengthen their action protocols regarding tourist arrivals.     

Consumers’ willingness to pay for green initiatives of the hotel industry

This paper examines hotel guests’ willingness to pay a premium for environmentally friendly and sustainable practices of the U.S. hotel industry. Specifically, the goal of this research is to investigate the relationship between the level of U.S. hotel guests’ environmental concern, measured by the New Ecological Paradigm Scale (NEP) and their willingness to pay (WTP) a premium for hotels’ “green practices.” This study found that U.S. hotel guests with higher degrees of environmental concerns declare a higher willingness to pay premiums for hotels’ green initiatives. This avowed willingness supports the social identity theory and the means-end theory. In addition, based on the affect-based complementarity proposition, this study also examined the effect of hotel type on WTP in the U.S. hotel industry, and found that luxury and mid-priced hotel guests are more willing to pay premiums for hotels’ green practices than economy hotel guests.     

Competency analysis of top managers in the Taiwanese hotel industry

The purpose of this study was to identify top managers’ competencies in hotel unit leaders perceived to be most critical for career development, and using the Fuzzy Delphi and Analytic Hierarchy Process methods to determine perceptions of the importance of various competencies in different dimensions. This study uses snowball sampling methods to collect data from 25 hotel top managers and uses qualitative and quantitative surveys, including interviews, questionnaire review and a questionnaire survey. A two-stage research design is adopted to understand the differences in perceived competency requirements better. The analytical results demonstrate the required competencies of top managers in the hotel industry, and divide them into generic and technical dimensions, 18 competency domains, and 107 competency indices. The top three most important competency domains are “leadership,” “crisis management,” and “problem-solving.” The proposed management competency framework provides an important implication for educators, practitioners, and researchers.     

Market structure and demand-side substitutability of chained urban hotel segments

This study analyzes how the demand in hotel markets is divided amongst chained hotel segments. Hypotheses regarding consumers’ switching behavior due to changes in income levels and relative prices are tested using data from 25 major urban markets in the United States, encompassing segments ranging from luxury to economy over 43 quarters. The effects of differentiation and market concentration are also investigated in this context. The results suggest that leisure and individual consumers of the low-scale segments may be trading “up” to higher scales when their income increase, but that upscale segments’ corporate consumers are not necessarily trading “down” when Corporate Income fall. In addition, only low-scale segments appear to be substitutes to upscale segments, but the inverse seems not to be true. Also, properties in mid-range segments are found to be the only ones benefiting from a high market concentration, while low-scale properties turn out to be the ones gaining from differentiation through price.     

Exploring the relationship between employee creativity and job-related motivators in the Hong Kong hotel industry

The purpose of this research is to determine if there is any relationship between employee creativity and job-related motivators, using a case study of hotel employees in Hong Kong. From a sample of 983 employees, canonical correlation indicated there is a relationship between creativity and job-related motivators. Furthermore, the risk-taking dimension under creativity was found to be more correlated to the intrinsic job-related motivators. Intrinsic job-related motivators which include opportunity for advancement and development, loyalty to employees, appreciation and praise of work done, feelings of being involved, sympathetic help with personal problems and interesting work, are found to encourage the hotel employees’ risk-taking behavior. A “See-Saw” model is presented to show the relationship between the two opposing sides: intrinsic motivators and extrinsic motivators versus creativity and risk-taking factors.     

Determinants and outcome of career competencies: Perspectives of hotel managers in China

This study aims to explore the determinants and outcome of career competencies. Based on the notion that organizations and individuals have respective obligations in the career management of employees’, this study developed perceived “organizational career management’ (OCM) and “career commitment” as determinants and career satisfaction as an outcome of career competencies. Data were collected in the state-owned hotels in China, and structural equation modeling was used to test the proposed relationships. The findings indicate that both perceived OCM and career commitments have positive, direct effects on career competencies. The findings of this study may benefit both hotels and hotel employees by providing valuable implications.     

The impact of hotel CSR for strategic philanthropy on booking behavior and hotel performance during the COVID-19 pandemic

During the novel coronavirus (COVID-19) pandemic, some hotels have engaged in corporate social responsibility (CSR) activities to help overcome the crisis. Given that most existing research examines the impact of hotel CSR on a single stakeholder, how hotel CSR activities in a crisis are perceived by multiple stakeholders is unknown. Drawing on the concept of strategic philanthropy, this study examines the impact of hotel CSR activities during the pandemic, such as providing accommodations to healthcare workers, on hotel firms' market value and prospective hotel customers’ booking behavior. Adopting mixed-methods approach, this study finds negative impacts of hotel CSR for strategic philanthropy on firm market value and customer booking behavior. The study result indicates that the value of hotel CSR depends on the nature and environmental contexts of CSR. Specific theoretical and practical implications are provided.     

Hotel employees’ perceptions on corporate social responsibility: The case of Hong Kong

This study examines the perceived importance of corporate social responsibility (CSR) attributes of Hong Kong hotel employees and their hotels’ performance on those attributes, and to determine underlying performance factors that ultimately lead to the perceived overall CSR effectiveness of hotels. The importance–performance analysis results show that Hong Kong hotels generally performed well on 17 out of the indicated 30 CSR attributes. Furthermore, the attribute “promote innovation in products and services” was considered to be overkill, and another attribute, “demonstrates a commitment to the environment,” requires the immediate attention of hotels. Six performance factors were extracted and Hong Kong hotels performed best in the area of finance. The factors “state of affairs” and “novelty” positively and significantly affected employees’ perceived overall CSR effectiveness of their hotels. Almost 70% of the respondents agreed that Hong Kong hotels had been effective in carrying out their CSR. Hotels in Hong Kong should find our study results helpful in pinpointing CSR attributes considered of various importance and performance levels from the perspective of one of their important stakeholders, their employees. In particular, the relatively low awareness toward the environment of both the employees and the hotels should alert the hotel management to invest greater efforts in environmental protection.     

Consumers’ responses to ambivalent online hotel reviews: The role of perceived source credibility and pre-decisional disposition

Electronic word-of-mouth (eWOM) is prevalent in today's lodging market and has potential to influence consumers’ decision making. This study investigated how the presence of online reviewers’ personal identifying information (PII) may affect consumers’ processing of ambivalent online hotel reviews and hotel booking intentions. The results of an experiment with a sample of 274 undergraduate students indicate that the presence of PII positively affects the perceived credibility of the online reviews. When coupled with ambivalent online reviews, the presence of PII significantly lowers consumers’ hotel booking intentions.     

Identifying critical hotel cancellations using artificial intelligence

Cancellations have a significant impact on the hotel and lodging industry because they directly affect income and are thus considered critical in revenue management. Specifically, cancellations made close to the time of service are the most damaging for hotels because they leave management with no time to react. The use of Personal Name Records (PNR) has led to new approaches in this field, however despite this novel research area there are no investigations focusing on forecasting for individual hotel cancellations made close to the time of service. With the aim of filling this gap, this research is intended to identify those individuals likely to make cancellations in a short-horizon of time using Artificial Intelligence (AI) techniques through PNR data. Promising results have been achieved with 80% accuracy for cancellations made 7 days in advance. By taking this approach, booking management systems, as well as cancellation policies may be optimised.     

BayesRec: Personalize search ranking with customer attribute-level willingness-to-pay using heterogeneous booking choice data

The ongoing travel restrictions owing to the COVID-19 shutdown continue to impact the hospitality sector. This pause on travel has led to a bigger regime shift in the customer's preferences for hotel selection. Therefore, this study aims to help understand customers’ evolving preferences by assessing the customers’ attribute-level willingness-to-pay (WTP) to tailor the booking experience. Furthermore, the study accounts for customers’ behavioral heterogeneity and decision choices while estimating WTP. The proposed approach utilizes multi-stage online modeling: (i) Segmentation to create behavioral customer cohorts; (ii) Hierarchical Bayesian modeling to estimate customer-level WTP; and (iii) Multi-criteria decision optimization to rank-optimize the hotel alternatives by leveraging the assessed attribute-level WTP. This continuous assessment provides personalized hotel recommendations and enhances customer’s booking experience, thereby allowing hotels to accelerate revenue recovery and aid in proactive demand generation for the next wave of travelers in a post-COVID economy.     

Understanding leisure travel motivations of travelers with acquired mobility impairments

The purpose of the study was to understand what motivated people with mobility impairments to travel frequently. Two focus groups were conducted and results were analyzed in light of Crompton’s (1979) push/pull conceptual framework exploring pleasure travel motivation. Results showed that although travelers with acquired mobility impairments shared many similar motives with travelers not identified as having mobility impairments, they also had unique motivations including “Independence”, “The Desire of Being in a Natural Environment”, “Adventure/Risk”, “Do It Today”, and “Accessibility.” Findings and limitations of the study are discussed and implications of the results are suggested.     

An empirical study on the influence of economy hotel website quality on online booking intentions

This study investigates the potential theoretical relationships among economy hotel website quality, eTrust, and online booking intentions in China. A questionnaire survey was performed, and 298 samples were collected from the users of three economy hotel websites (7 days, Home Inns, and Hanting Hotel) in Guangzhou, China. Results of a detailed data analysis demonstrate the influence of the four dimensions of economy hotel website quality (usability, ease of use, entertainment, and complementarity) on eTrust and online booking intentions. Specifically, (1) the usability, entertainment, and complementarity of economy hotel websites significantly positively affected eTrust; on the contrary, the influence of ease of use on eTrust was insignificant; (2) complementarity showed a more positive influence than the three other attributes on online booking intentions; and (3) eTrust significantly positively influenced online booking intentions. These findings contribute to economy hotel online marketing in China by bridging the gap between the exploration of hotel website quality and its influence on online booking intentions.     

Reducing perceived health risk to attract hotel customers in the COVID-19 pandemic era: Focused on technology innovation for social distancing and cleanliness

As an essential risk-reduction strategy, technology innovation is likely to play a key role in the hotel industry’s recovery from the 2020 coronavirus pandemic. However, its impact on customer decision-making behavior is unknown. Focusing on technology innovation for reducing guest interaction with employees and enhancing cleanliness, the purpose of this research was to examine the impact of expected interaction and expected cleanliness on perceived health risk and hotel booking intention. Three experimental studies were conducted using online consumer samples. The studies found that low levels of expected interaction through technology-mediated systems lead to low levels of perceived health risk. Perceived health risk mediates the relationship between expected interaction and hotel booking intention. In addition, high levels of expected cleanliness through advanced cleaning technologies moderate the impacts of expected interaction on perceived health risk. Importantly, the proposed perceived risk mechanism was effective in post-pandemic scenarios. Theoretical and practical implications are discussed.     

Do online hotel rating schemes influence booking behaviors?

Travelers’ hotel booking behaviors increasingly depend on peers' opinions and online ratings. This study investigates the effects of online hotel ratings on travelers' attitudes toward the hotel and booking intentions, using a 2 × 2 experimental research design. The results suggest that online rating lists are more useful and credible when published by well-known online travel communities (e.g., TripAdvisor). More favorable attitudes toward a hotel and higher booking intentions emerge when the hotel appears in best hotels lists. Finally, for the entries on best hotels lists, better attitudes and higher booking intentions result if the list is published on a well-known online travel community (Tripadvisor), whereas for entries on a worst hotel list, attitudes and booking intentions decrease even further if the list appears on TripAdvisor.     

A simultaneous equations model of the hotel room supply and demand in Hong Kong

The purpose of the study is to identify the important factors that influence the hotel room supply and demand, and their overall impact on the Hong Kong hotel industry. Nineteen years of time series data are used and a simultaneous equations econometric model is employed. The overall goodness-of-fit of both demand and supply models is very high, suggesting high predictive power. Empirical results indicate that “hotel room price” and “tourist arrivals” are significant factors driving the demand for hotel rooms. In addition, “1990–91 recession” and “the 1997–98 Asian financial crisis” had a significant negative impact on the demand for hotel rooms in Hong Kong. At the same time, “hotel room quantity demanded”, “room occupancy rate”, “last period's room price”, “labor cost”, “last period's average price of Grade A private offices”, and “the Asian financial crisis” all have a significant impact on room price in the short run.     

The effect of hotel lobby design on booking intentions: An intergenerational examination

This paper aims to understand what elements of the hotel lobby design influence guest booking intentions. Lobbies are the first point of face-to-face communication between guests and staff upon arrival, impacting the initial guest perception of the property as well as playing an essential role in creating first impressions. Building on the Stimulus-Organism-Response framework, the study investigates preferences of millennial and non-millennial travelers towards hotel lobby design concerning style (contemporary vs. traditional) and biophilic elements (present vs. absent). This quantitative study is designed as an online, virtual, scenario-based experiment. The hypotheses were tested using MANOVA, ANOVA, and linear regression. The findings of the study reveal that the lobby interior design style has a significant impact on booking intention across different generations. Moreover, millennials are more impacted by the design style of the hotel lobby than non-millennials. Biophilic design has also been found to impact the satisfaction and emotions of guests across different generations.