TY - JOUR
T1 - Asymmetric preference in hotel room choice and implications on revenue management
AU - Masiero, Lorenzo
AU - Pan, Bing
AU - Heo, Cindy Yoonjoung
N1 - Funding Information:
The work described in this paper was fully supported by a grant from The Hong Kong Polytechnic University (Z0GX) and partially supported by a grant from National Natural Science Foundation of China (Grant # 41428101).
Publisher Copyright:
© 2016 Elsevier Ltd.
PY - 2016/7/1
Y1 - 2016/7/1
N2 - In selecting a hotel room, guests evaluate specific room characteristics. After their stay, these characteristics are used as reference levels in deciding which hotel room to stay in the future. According to prospect theory, the gains (i.e., upgrade or improving) and losses (i.e., downgrade or worsening) with respect to the reference level are perceived differently by individuals. In particular, losses are weighted more than gains. This research investigates the asymmetric preference in hotel room choice by performing a stated choice experiment among the guests of a hotel in Hong Kong. A mixed logit model is estimated by deriving different coefficients for improving and worsening conditions, and attribute-specific cluster analyses are performed to identify those segments with similar preferences. The results confirm the validity of reference-dependent specification in hotel room choice and provide insights for revenue managers in relation to their aim to maximize revenue for repeat guests.
AB - In selecting a hotel room, guests evaluate specific room characteristics. After their stay, these characteristics are used as reference levels in deciding which hotel room to stay in the future. According to prospect theory, the gains (i.e., upgrade or improving) and losses (i.e., downgrade or worsening) with respect to the reference level are perceived differently by individuals. In particular, losses are weighted more than gains. This research investigates the asymmetric preference in hotel room choice by performing a stated choice experiment among the guests of a hotel in Hong Kong. A mixed logit model is estimated by deriving different coefficients for improving and worsening conditions, and attribute-specific cluster analyses are performed to identify those segments with similar preferences. The results confirm the validity of reference-dependent specification in hotel room choice and provide insights for revenue managers in relation to their aim to maximize revenue for repeat guests.
UR - http://www.scopus.com/inward/record.url?scp=84963930749&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84963930749&partnerID=8YFLogxK
U2 - 10.1016/j.ijhm.2016.03.009
DO - 10.1016/j.ijhm.2016.03.009
M3 - Article
AN - SCOPUS:84963930749
SN - 0278-4319
VL - 56
SP - 18
EP - 27
JO - International Journal of Hospitality Management
JF - International Journal of Hospitality Management
ER -