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Globalization or localization of consumer preferences: The case of hotel room booking

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  • Liu, Wei
  • Denizci Guillet, Basak
  • Xiao, Qu
  • Law, Rob

Abstract

The purpose of this study is to investigate potential differences in attitudes between Chinese and Western tourists towards various hotel room reservation policies. The study is meant to help the revenue managers of international hotel companies make informed choices on whether to pursue a globalized or a localized approach in the design of hotel room rates and rate restrictions. Three ranges of room prices and four types of rate restrictions are evaluated. The rate restriction policies considered are: a) rule type, b) advance requirement, c) refundability, and d) changes allowed. The results of customer surveys show that the Chinese and Western respondents do not express significantly different preferences concerning room rates, advance requirement, rule type, or refundability. They differ significantly only concerning the changes allowed policy. This result indicates that revenue managers of international hotel companies can take a globalized approach in designing rate restrictions. The identification of these customer preferences provides hotel revenue managers with empirical data on the attitudes of culturally diverse consumers, and this information can enable the design of hotel pricing policies that attract consumers in the global market.

Suggested Citation

  • Liu, Wei & Denizci Guillet, Basak & Xiao, Qu & Law, Rob, 2014. "Globalization or localization of consumer preferences: The case of hotel room booking," Tourism Management, Elsevier, vol. 41(C), pages 148-157.
    • Handle: RePEc:eee:touman:v:41:y:2014:i:c:p:148-157
    DOI: 10.1016/j.tourman.2013.09.004
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    Cited by:

    1. Martin Petricek & Stepan Chalupa & David Melas, 2021. "Model of Price Optimization as a Part of Hotel Revenue Management—Stochastic Approach," Mathematics, MDPI, vol. 9(13), pages 1-16, July.
    2. Yi-Man Teng & Kun-Shan Wu & Che-Yi Chou, 2020. "Price or Convenience: What Is More Important for Online and Offline Bookings? A Study of a Five-Star Resort Hotel in Taiwan," Sustainability, MDPI, vol. 12(10), pages 1-16, May.
    3. Mei Candy Fung & Mei Tang Fung & Nada Kulendran & Brian King & Matthew H.T. Yap, 2016. "Research Note: Using Demand Determinants to Anticipate Fluctuations in Hotel Occupancy," Tourism Economics, , vol. 22(1), pages 179-187, February.
    4. Wong, Tommy & Wickham, Mark, 2015. "An examination of Marriott's entry into the Chinese hospitality industry: A Brand Equity perspective," Tourism Management, Elsevier, vol. 48(C), pages 439-454.
    5. Santos, Maria & Brochado, Ana & Esperança, José, 2016. "Foreign direct investment patterns of global hotel chains," Journal of Business Research, Elsevier, vol. 69(11), pages 5235-5240.
    6. DeFranco, Agnes & Morosan, Cristian, 2017. "Coping with the risk of internet connectivity in hotels: Perspectives from American consumers traveling internationally," Tourism Management, Elsevier, vol. 61(C), pages 380-393.
    7. Aldric Vives & Marta Jacob & Marga Payeras, 2018. "Revenue management and price optimization techniques in the hotel sector," Tourism Economics, , vol. 24(6), pages 720-752, September.

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