Investigating accommodation experience in budget hotels

Abstract

PurposeThis paper aims to explore the accommodation experience of customers in the budget hotel sector – a less explored but rapidly expanding sector in the hospitality industry. This study investigates the effects of such experience on customer behavior.Design/methodology/approachThe study adopts a quantitative approach and draws on a comprehensive data set (N = 414) by using a quota sampling approach. The context of the study is the Chinese market, where budget hotels and the number of mass tourists (inbound and outbound) have increased tremendously.FindingsThis study identifies a behavioral pattern that differs from trends reported in prior studies. The finding shows that the relationship between customer experience and behavioral intentions is mediated by customer satisfaction, which similarly mediates the relationship between perceived value and behavioral intentions.Research limitations/implicationsThe results provide significant implications for hoteliers in the budget hotel industry by calling for a differentiated marketing approach for this segment of customers. Furthermore, the study provides insights into the accommodation behavior of Chinese mass tourists. These findings can serve as reference for international budget hotel practitioners, especially those involved in hotels that target the increasing number of travelers from China.Originality/valueThe budget hotel sector is the first accommodation choice for many Chinese mass tourists. This study is the first to conduct a systematic exploration of the behavioral patterns of customers toward budget hotels in this context. Moreover, this study adopts a holistic approach by adopting an experiential view in measuring the overall experience of customers in budget hotels.