How Business Travelers Discriminate Between Mid-Priced and Luxury Hotels:

Abstract

The purpose of this study was to determine which hotel characteristics differentiate between mid-priced and luxury properties from the viewpoint of the business traveler. This study is unique in that it uses a longitudinal sample of 1044 business travelers compiled from three independent annual surveys that used the same questions. Budget properties were not included because the sample was primarily composed of respondents who frequented mid-priced and luxury properties. To develop the dependent variables, respondents were assigned to either a group representing business travelers who frequented midpriced properties or a group representing business travelers who frequented luxury properties. The study's independent variables were 56 hotel characteristics. These included a variety of amenities, from personal-use items, to facilities and services, as well as other more subjective hotel characteristics, such as cleanliness, recommendations, and security. A discriminant analysis was performed to determine how these business lodging patrons discriminated between mid-priced and luxury properties based on the hotel characteristics they considered important in their hotel selection process. The findings indicated that low price, family restaurant, and pre-arranged check-in discriminated mid-priced properties from luxury properties. Bellman service, concierge service, gourmet restaurant, bathrobe, and hair dryer discriminated luxury hotel properties from mid-priced properties.