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The individual monetary valuation of online hotel ratings

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  • Evangelinos, Christos
  • Obermeyer, Andy
  • Bartel, Aaron

Abstract

We test the impact of online hotel ratings on the customers' hotel choice using a binary choice experiment where the online rating score is one of the hotels' attributes. Results show that online rating scores have a positive and significant impact on hotel choice. We also calculate the individual willingness to pay for higher rating scores and report the corresponding income and age elasticities.

Suggested Citation

  • Evangelinos, Christos & Obermeyer, Andy & Bartel, Aaron, 2020. "The individual monetary valuation of online hotel ratings," IU Discussion Papers - Hospitality, Tourism & Event 3/2020, IU International University of Applied Sciences.
    • Handle: RePEc:zbw:iubhht:32020
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    More about this item

    Keywords

    Hotel rating; online review; discrete choice model; logit model; monetary valuation; eWOM;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • L8 - Industrial Organization - - Industry Studies: Services
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Z31 - Other Special Topics - - Tourism Economics - - - Industry Studies

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