MILLENIALS UNCOVERED: BOUTIQUE HOTELS AND DRIVERS OF INTENTION TO STAY OF INDONESIAN MILLENIAL CUSTOMERS

Abstract

Boutique hotels have gained popularity across the world. Despite this, they still have to face fierce competition from large hotel chains to attract guests to stay. This study aims to investigate different factors which may contribute to generation Y/millenials' intention to stay at a boutique hotel. Questionnaires were distributed online to generation Y respondents. Data gained was analyzed using partial least square structural equation modelling. The findings suggest that knowledge of a boutique hotel has a significant positive influence towards perceived value of staying at a boutique hotel. Moreover, perceived authenticity and perceived value were also found to have positive significant influence on intention to stay at a boutique hotel. The findings of this study contribute to better understanding of the factors which drive millennial customers to stay at a boutique hotel. It is imperative that the boutique hotel managers deliver the promised values of their accommodation to the existing and potential customers. In addition to that, knowledge was also shown to influence perceived value of a boutique hotel, indicating a strong need to educate potential customers about the values of staying in a boutique hotel.