Blended Pricing and Fairness Perceptions: Managing Intrastay Rate Variability in Hotel Bookings
Dynamic hotel pricing often produces sizable variation in nightly rates within a single reservation, creating a communication challenge for revenue managers. Drawing on mental accounting, reference-dependent evaluation, and processing fluency, we examine how the magnitude of intrastay rate variation and the format of price presentation jointly shape consumer responses. Across two experiments, we test whether nightly rate variation affects perceived price fairness and booking intentions, and whether a blended pricing strategy—displaying a single average nightly rate—can mitigate adverse effects. Study 1 shows that greater intrastay variation lowers perceived fairness, which in turn reduces booking intentions; Study 2 demonstrates that when variation is high, a blended (vs. itemized) display improves perceived fairness and booking likelihood by reducing cognitive burden and enhancing fluency. We also calibrate our stimuli to reflect real-world volatility observed during peak periods and mega-events, thereby strengthening ecological validity and clarifying the boundary conditions under which display format matters most. Collectively, the findings redirect attention from absolute transparency to the way consumers mentally organize and process volatile prices, offering actionable guidance for digital booking environments marked by algorithmic pricing and heightened transparency: Carefully designed blended displays can preserve pricing flexibility while sustaining fairness perceptions, consumer trust, and conversion rate.
- Research Article
- 10.3390/su18010325
- Dec 29, 2025
- Sustainability
Environmental, social, and governance (ESG) initiatives have gained increasing attention in the hotel industry, yet the consumer-level psychological processes through which such activities relate to booking intentions remain incompletely understood. This study aims to examine how hotel ESG activities are associated with consumers’ booking intentions by focusing on the mediating roles of corporate image and consumer trust, as well as the moderating role of environmental awareness. Survey data were collected from consumers with recent hotel stay experiences in China and analyzed using a dual-method approach, combining partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). The results show that social and governance activities are positively associated with corporate image, whereas environmental and social activities are positively associated with consumer trust. Corporate image and consumer trust are, in turn, associated with higher booking intentions, while environmental awareness strengthens only the relationship between environmental activities and corporate image. In addition, the fsQCA results reveal multiple configurational pathways through which different combinations of ESG activities and consumer psychological responses are associated with high booking intention. Overall, the findings suggest that hotel ESG initiatives relate to booking intentions through differentiated psychological mechanisms and multiple pathways.
- Research Article
12
- 10.3390/su16146050
- Jul 15, 2024
- Sustainability
Social commerce plays a significant role in various aspects of the hotel industry. By using social commerce platforms such as Facebook, Instagram, and hotel booking websites, hotels can enhance their brand visibility, engage more effectively with guests, and stimulate hotel bookings. Nonetheless, prior research reported a lack of studies in this area, namely social commerce in the context of domestic tourism. Drawing on Stimuli–Organism–Response (SOR) theory as being a well-established framework in social commerce research, this study seeks to examine the impact of social commerce on hotel booking intentions, both directly and indirectly, by considering the mediating effects of both brand image and customer engagement. This research used an online survey questionnaire as a tool for collecting primary data from domestic tourists in Egypt during the period from January to April 2024. The study sample encompassed 315 participants who were recruited using the convenience sampling technique. Using Smart PLS 4.0 software, Structural Equation Modeling was performed to examine the proposed model and hypotheses. The results highlighted the significant impact of social commerce on both hotel brand image and customer engagement, which in turn encouraged booking intentions among potential domestic guests. The results also supported the significant mediating effect of hotel brand image and customer engagement in the relationship between social commerce and hotel booking intentions. This study provides some theoretical contributions to the literature of hospitality management by addressing notable gaps in knowledge. This study also suggests some practical implications for industry executives that support their social commerce techniques and boost booking intentions and behavior among domestic tourists such as creating visually attractive content, sponsoring virtual mega events, actively interacting with social media followers, and incorporating booking functionalities in social media platforms. In so doing, hotels can boost their sustainable marketing practices to target a promising market segment by exploiting Web 2.0 capabilities.
- Research Article
1
- 10.47672/jht.1980
- Apr 27, 2024
- Journal of Hospitality and Tourism
Purpose: The aim of the study was to assess the impact of online reviews on hotel booking intentions among millennials in Nigeria. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study discovered that millennials heavily rely on online reviews when making hotel booking decisions, considering them as crucial sources of information. Positive reviews tend to increase booking intentions, while negative reviews have a significant adverse effect. Additionally, the study revealed that millennials are more inclined to trust reviews from fellow consumers rather than those from official hotel websites or advertising campaigns. Furthermore, it highlighted the importance of review authenticity and the influence of review characteristics such as quantity, recency, and overall rating on booking intentions. Implications to Theory, Practice and Policy: Social influence theory, technology acceptance model and selective exposure theory may be used to anchor future studies on assessing the impact of online reviews on hotel booking intentions among millennials in Nigeria. Hoteliers should prioritize online reputation management strategies that enhance the credibility and authenticity of online reviews, thereby positively influencing Millennials' booking intentions. Policymakers should enact regulations that promote transparency and accountability in online review platforms to mitigate the spread of fake or misleading reviews.
- Book Chapter
5
- 10.4018/979-8-3693-7122-0.ch003
- Jul 26, 2024
This study explores the ethical considerations of AI bias and fairness in service marketing and their impact on consumer trust and perceptions. As AI-driven marketing grows, understanding its ethical implications is vital for consumer confidence and fair practices. A structured questionnaire was administered to 368 respondents, selected via stratified random sampling for demographic representation. The survey gathered demographic data, exposure to AI marketing, and perceptions of AI fairness, ethicality, and trust using Likert scales. Results showed 67.9% of participants were exposed to AI marketing. Perceptions of AI fairness (mean score 3.5 ± 1.2) and ethicality (mean score 3.8 ± 0.9) were moderate. Strong correlations were also noted between perceptions of fairness, ethicality, and trust, with demographic factors like age and gender playing significant roles. The findings highlight the importance of ethical AI practices in building consumer trust and offer insights for marketers and policymakers to develop fair and transparent AI-driven marketing strategies.
- Research Article
2
- 10.26668/businessreview/2024.v9i10.4498
- Oct 15, 2024
- International Journal of Professional Business Review
Purpose: The objective of this study is to explore the influence of online reviews on hotel booking intentions among consumers in Thailand, considering the mediating effects of trust and perceived value. Theoretical Framework: The Online Reviews (OR) construct, adapted from Wen et al. (2021), and the Trust (TRT) construct, assessed with measures from Ladhari and Michaud (2015). The Trust scale included four slightly modified items aligned with study objectives. The Value (VAL) construct was evaluated using measures from S. Y. Kim et al. (2017). Lastly, Booking Intention (BI) was assessed using four aspects adopted from Chakraborty and Biswal (2019). Design/methodology/approach: This study investigates the impact of online reviews on hotel booking intentions, employing trust and value as mediating factors. Utilizing a quantitative design through a survey conducted in Thailand, purposive sampling was employed to ensure diversity, with a minimum sample size of 379 determined to achieve a 0.05% sampling error at 95% confidence. Statistical methods, including a 5-point Likert scale, were utilized for data analysis, measure validation, and model reliability assessment, employing SEM analysis with ADENCO software. Descriptive statistics offered insights, contributing to a comprehensive understanding of the factors influencing individuals in Thailand when initiating and managing social entrepreneurial ventures. The study's methodology ensures robustness, reliability, and addresses potential biases through thorough sampling, statistical techniques, and validation procedures. Findings: The results emphasize the substantial influence of online reviews on trust, value perception, and hotel booking intentions. Demographic insights reveal sample characteristics and response variations. These findings deepen our understanding of factors influencing consumers' decisions in hotel booking. Research, Practical & Social implications: The demographic analysis conducted in this study reveals a gender distribution of 27.5% male and 72.5% female participants, primarily aged over 55 (49.1%), with 67.5% holding bachelor's degrees and earning between 30,001-50,000 baht (35.4%). Notably, civil servants and state enterprise employees dominate the occupational landscape (44%). Employing structural equation modeling (SEM), the study confirms that trust and value perception mediate the relationship. It elucidates significant connections between online reviews and trust, online reviews and value perception, and trust and booking intentions. The model remarkably clarifies a substantial portion of the variance in the dependent variables, ranging from 53.5% to 65.7%, highlighting the influential role of online reviews in shaping trust, value perception, and booking intentions. This study delves into the impact of online reviews on hotel booking intentions, with a specific focus on trust and value perception as mediators. Key findings encompass: 1) Online reviews significantly influence consumers' hotel booking intentions, playing a pivotal role in decision-making. 2) Trust and value perception mediate the relationship between online reviews and booking intentions, underscoring their profound impact on consumer behavior. 3) Employing a quantitative research design and survey data collection, the study provides systematic insights from a diverse participant sample. 4) The research not only supports existing literature on online reviews, trust, value perception, and hotel booking intentions but also contributes novel insights to these domains. Originality/Value: This study uncovers essential roles of online reviews, trust, and value perception in hotel booking, enlightening practitioners and researchers on digital-era consumer behavior.
- Research Article
- 10.21512/bbr.v16i1.11873
- Feb 13, 2025
- Binus Business Review
The increasing ease of Internet access has led to the widespread use of Online Travel Agents (OTAs), especially in the tourism industry. OTAs simplify hotel booking and increase consumer interest. A key factor influencing hotel booking intention is Online Customer Reviews (OCRs), which can be positive or negative and provide essential information to potential buyers. Despite the critical role of OCRs, limited research has been conducted on how brand image and price importance moderate the effect of reviews on hotel booking intentions, particularly in Indonesia. The research aimed to examine the impact of OCRs on hotel booking intention, with a focus on brand image and price importance as moderating factors on Indonesia’s largest OTA platform, Traveloka. Data were collected from 500 valid respondents and analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) to assess the influence of reviews, brand image, and price importance on booking intentions. The results demonstrate that positive OCRs significantly enhance booking intentions. Additionally, brand image and price importance play a crucial moderating role in strengthening the influence of reviews on consumer decisions. These findings highlight hotel managers’ importance in maintaining a positive online presence and leveraging their brand image and pricing strategies to maximize booking intentions. The research contributes to the theoretical understanding of OTA-mediated consumer behavior and offers practical insights for optimizing digital marketing strategies within the Indonesian tourism sector.
- Research Article
- 10.3389/fpsyg.2022.997667
- Sep 28, 2022
- Frontiers in psychology
In this paper, we investigated the quarantine hotel (QH) booking intention (BI) of potential consumers from a corporate social responsibility (CSR) perspective. Mixed methods were adopted to explore the formation mechanisms of QH BI of potential consumers when the COVID-19 pandemic recedes. In Study 1, we constructed a theoretical model of QH BI of potential consumers based on grounded theory and put forward research propositions. In Study 2, we tested the robustness of the model and identified the mediating effect through two situational experiments. The research results showed that: (1) Potential customers are more willing to book QHs than normal hotels (NHs). (2) Multiple mediating mechanisms are involved in the effect of the operation as a quarantine facility on BI of potential consumers, including “QH-corporate social responsibility (CSR)-customer trust (CT)-BI” and “QH-CSR-customer gratitude (CG)-BI.” This research not only has theoretical significance for deepening and expanding social exchange theory and hotel CSR theories but also provides guidance for the participation of the hotel industry in the prevention and control of the COVID-19 pandemic and hotel marketing after the pandemic ends.
- Research Article
- 10.17549/gbfr.2024.29.3.68
- Apr 30, 2024
- GLOBAL BUSINESS FINANCE REVIEW
Purpose: This study aims to investigate the influence of hotel selection attributes, CHSE (clean, health, safety, and environment) practice, and brand credibility on hotel booking intention. Additionally, this study investigates the role of CHSE practices, together with brand credibility, as moderating factors in the relationship between hotel selection attributes and hotel booking intention among travelers. Design/methodology/approach: With an incidental sampling technique, in the aftermath of the COVID-19 pandemic, data were collected from 157 travellers over 20 years old who had stayed in a CHSE-certified hotel in Bali, Indonesia. Partial least squares structural equation modelling was utilized to assess the relationship model. Findings: This study reveals that hotel selection attributes, CHSE practice, and brand credibility positively influence on hotel booking intention. CHSE practice weakens the positive influence of hotel selection attributes on booking intention. While brand credibility reinforces the said influence. In the framework of signaling theory, CHSE practice can be seen as an internal signal that can influence hotel booking intention. While brand credibility is an external signal. Research limitations/implications: This finding cannot be generalized to other contexts and countries. Another limitation is that respondents filled out the questionnaire when they were not on the spot of the hotel due to potential disturbing leisure and location permit constraints. Future studies could pay attention to collecting data while the respondent is still at the hotel to obtain more updated questionnaire responses. The outcome of this study has practical implications for hotel management in designing strategic plans to improve hotel booking intentions. Originality/value: This study contributes to the literature on the moderating variable in the positive influence of travellers' hotel selection attributes on booking intention, which has never been explored before. In actuality, the post-COVID-19 pandemic will never be identical to the pandemic period, especially in terms of how travellers make considerations when booking hotels.
- Research Article
- 10.1177/14673584251406877
- Dec 22, 2025
- Tourism and Hospitality Research
This study investigates the impact of the COVID-19 pandemic on consumer trust in the hotel industry, focusing on how the dynamics of trust as a determinant of consumer booking intentions have evolved. Grounded in Social Contagion Theory, the research examines how consumers’ attitudes toward trust spread within social networks during crises. Data collected via Qualtrics surveys across pre-pandemic, during the pandemic, and post-pandemic stages reveal that while the overall trust level remained stable, the pandemic significantly moderated the influence of trust on hotel booking intentions in the post-pandemic period. Findings suggest that consumers now prioritize factors beyond traditional trust, and marketers need to adapt marketing strategies to meet new consumer expectations, emphasizing the importance of customer engagement and trust maintenance to navigate the post-pandemic environment effectively.
- Research Article
- 10.33545/26648652.2026.v8.i3a.391
- Mar 1, 2026
- International Journal of Arts, Humanities and Social Studies
The rapid expansion of digital technology and social media platforms has transformed promotional strategies in the automobile industry, particularly in the electric vehicle segment. The present study titled “Leveraging Social Media Platforms to Boost Sales Promotion Effectiveness in the Electric Two-Wheeler Market” examined the influence of social media promotional strategies on consumer awareness, purchase intention, buying decisions, trust, and conversion rates. The study was conducted in selected districts of Karnataka, namely Bangalore South District, Mandya, and Mysore, using a descriptive and analytical research design. Primary data were collected from 200 respondents through a structured questionnaire based on a five-point Likert scale. Statistical tools such as Percentage Analysis, Correlation, and Simple and Multiple Linear Regression were applied using SPSS software to test the formulated hypotheses. The findings revealed that social media promotional strategies significantly enhanced consumer awareness (R² = 0.465). Social media engagement showed a strong positive relationship with purchase intention (r = 0.721, R² = 0.520). Sales promotion tools such as discounts and limited-time offer significantly influenced buying decisions (R² = 0.584), while influencer marketing and user-generated content demonstrated the highest impact on consumer trust and conversion intention (R² = 0.623). The study concluded that social media serves as a powerful strategic tool in accelerating sales and strengthening competitive positioning in the electric two-wheeler market. The findings provide valuable insights for marketers, EV companies, and policymakers in designing effective digital promotional strategies to promote sustainable mobility.
- Research Article
11
- 10.1080/15256480.2022.2092251
- Sep 28, 2022
- International Journal of Hospitality & Tourism Administration
This study aims to test the role of price consciousness, reputation, trust, and perceived value on tourists’ booking intentions on Airbnb. Additionally, this study investigates the mediating role of perceived value and consumer trust in Airbnb on the link between attributed causes and guest booking intention. A cross-sectional survey was designed to examine the theoretical framework, which yielded 311 responses. The data were analyzed using structural equation modeling. The study found that reputation and price consciousness influence tourists’ cognitive evaluation of Airbnb service and affect their intention to book accommodation on the Airbnb platform. The findings of this study may serve as the basis for designing effective marketing tools to understand better causes that may drive guests’ booking intentions.
- Research Article
- 10.21608/ijthm.2025.471839
- Dec 1, 2025
- International Journal of Tourism and Hospitality Management
The application of virtual reality (VR) in the hospitality industry is a recent technological innovation shaping the sector globally. This study examined how VR usage influences the guests' booking intentions at Egyptian five-star hotels. A questionnaire was distributed to 402 guests at five-star hotels in Luxor, focusing on VR-based hotel bookings and virtual tours. Data analysis utilized two approaches: Partial Least Squares Structural Equation Modeling (PLS-SEM) via Warp PLS 8.0 for hypothesis testing and SPSS 22 for descriptive and demographic analyses. Results revealed high acceptance of VR among guests, who perceived it as useful for planning stays (mean = 4.29), enjoyable (mean = 4.26), and easy to use (mean = 4.25). Notably, VR significantly enhanced booking intentions by allowing immersive exploration of hotel features. While the study highlighted VR’s potential in five-star hotels in Luxor, its focus on a single geographic region (Luxor) may limit generalizability. These findings have encouraged hotel managers to integrate VR into marketing strategies to improve customer engagement and conversion rates. The research findings offered a robust theoretical and empirical contribution to understand VR adoption in the Egyptian luxury hospitality sector. By confirming and extending existing research, this discussion highlighted how VR’s usability, enjoyment, and perceived usefulness influenced adopting it among guests.
- Research Article
13
- 10.3390/su13031279
- Jan 26, 2021
- Sustainability
Since outdoor air pollutants may penetrate into hotels, indoor air quality (IAQ) has recently developed as an important criterion for tourists’ decision to choose traveling destinations and for business travelers to select accommodation. Thus, some hoteliers have raised concerns about the negative effects of emerging air quality issues on guests’ experience and are willing to invest in improving the IAQ. Unlike the hotel’s currently offered services and products which are observable, the improved IAQ is almost invisible and the mitigation technology of air pollutants is new to hoteliers, consumers and researchers in tourism. Hence, the search and understanding of the relationship of signals communicating hotel’s effort on air quality enhancement and booking intention plus the mediating and moderating factors become the main objective of the research and can fill the knowledge gap plus meet the practical need. The study found that the more reinforced IAQ effort included in the website presentation, the higher the travelers’ booking intention. The travelers’ trust in the hotel partially mediated the relationship between travelers’ perception of reinforced IAQ effort input by hoteliers and their booking intention. Further, the study finds that the enhancement of online booking intention does exist in a segment of travelers who are high health-conscious. Additionally, the influence of health-conscious traveler’s perception of hotel IAQ enhancement effort via the portal on the dependent variable—hotel booking intention was statistically significant. The findings enable hotel managers to have a deeper understanding of the relationship between the potential customers’ booking intention on hotel rooms and the online marketing communication signals mediated by their trust in the hotel’s cleaning air effort. The results can serve as a reference for designing more effective marketing communication programs and channels for hotels’ endeavor to improve indoor air quality, especially sustaining the tourism development in the post-epidemic era. Additionally, the study unveils some applied measures in improving hotel air quality not being documented in hospitality and tourism journals.
- Research Article
- 10.5937/bankarstvo1704152l
- Jan 1, 2017
- Bankarstvo
Richard Thaler, a contemporary American economist and professor of behavioral economics at the University of Chicago, won the 2017 Nobel Memorial Prize in Economic Sciences. He broadened the scope of economic analysis and made it more sophisticated by examining three psychological traits systematically influencing economic decisions, i.e. limited rationality, perception of fairness and lack of self-control. Thus, in the 1980s Thaler advanced his 'economic theory of self-control' which describes economic phenomena, especially decision-making, in terms of people's inability to control their impulses. In the numerous papers and books that he published in this relatively young field of economics, Thaler introduced the terms like 'nudge' and 'choice architecture', and developed the so-called theory of 'mental accounting'.
- Research Article
16
- 10.1177/14673584211021900
- Jun 6, 2021
- Tourism and Hospitality Research
This study aims to examine the factors affecting the behavioural intentions toward online hotel booking. The study integrates visual presentations and online reviews with the technology acceptance model (TAM). Partial least squares structural equation modelling (PLS-SEM) was used to test the proposed hypotheses in this research. The results report that booking intentions are mainly determined by visual presentations and perceived usefulness. The statistical analysis supports the notion that visual presentations and online reviews have a positive impact on perceived usefulness and perceived ease of use. However, online reviews do not have any significant influence on booking intention directly. The study concludes that online consumers are more likely to book a hotel online if visual presentations and online reviews appear to be useful and easy to use. The findings contribute several implications for researchers and practitioners in the hospitality field.