The impact of partitioned pricing on hotel booking and the moderating effect of temporal distance

Abstract

Utilizing the distinctive context of hotel bookings, where fees hold notable prominence, this study investigates the impact of partitioned pricing on consumer booking intentions. Our findings reveal that partitioned pricing in the hotel industry adversely influences booking intentions due to the perception of unfairness, rather than the perception of price, as observed in retail studies. Furthermore, this research confirms that temporal distance moderates the negative impact of partitioned pricing on booking intentions, while also uncovering asymmetrical consequences of payment timing across varying booking windows. These insights contribute to a deeper understanding of the conditional effects of partitioned pricing, thereby expanding the current pricing literature and offering valuable guidance for hotel industry professionals.