Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/33182
Title: Determining guests' willingness to pay for hotel room attributes with a discrete choice model
Authors: Masiero, L 
Yoonjoung Heo, C
Pan, B
Keywords: Discrete choice modeling
Hotel amenities
Revenue management
Stated choice experiment
Willingness to pay
Issue Date: 2015
Publisher: Pergamon Press
Source: International journal of hospitality management, 2015, v. 49, p. 117-124 How to cite?
Journal: International journal of hospitality management 
Abstract: Hotel managers need to understand the marginal utility customers associate with a specific attribute of a hotel in order to effectively set up rate fences and to price their rooms accordingly. This study adopted a stated choice experiment and discrete choice modeling method to obtain hotel guests' willingness to pay (WTP) for a specific set of room attributes within a single hotel property. The attributes include room views, hotel floor, club access, free mini-bar items, smartphone service, and cancellation policy. The study discovered 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 hotel managers to segment their market and conduct revenue management practices in order to maximize revenue and profit. The results also demonstrate the value of discrete choice modeling in obtaining WTP for hotel room attributes.
URI: http://hdl.handle.net/10397/33182
ISSN: 0278-4319
EISSN: 1873-4693
DOI: 10.1016/j.ijhm.2015.06.001
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