Blurred lines: comparing room rates, star-ratings, and user-generated contents for full-service and select-service hotels

Abstract

The relatively low cost to build select-service hotels coupled with increased competition in this segment has led to innovations that may have blurred the lines between full-service and select-service hotels. This study compares consumer perceptions of select-service and full-service hotels by comparing the best available rates and consumer-generated reviews from two sets of full-service and select-service hotels from Intercontinental Hotel Group and Hilton. This study found that brand, not segment, affected room rate while select-service hotels had significantly higher star-ratings than full-service hotels. For revenue managers, this study indicates that consumers are willing-to-pay a premium for hotels in certain brands.