The Determinants of Domestic and International Visitors' Online Hotel Booking

Asunur Cezar, Hulisi Öğüt
2012 Procedia - Social and Behavioral Sciences  
The aim of this research is to explore online hotel booking behaviors of domestic and international customers. We examine the impact of review rating (location rating and service rating), review volume and hotel characteristics on the proportion of online domestic bookings. Using data from London and Paris hotels, we evaluate a variety of models to explain fractional dependent variables. Our results show that price, review volume and location rating have a significant and negative impact while
more » ... ative impact while service and star rating have a significant and positive impact on the proportion of domestic bookings. However, the proportion of international bookings does not increase if the hotel belongs to a chain group. Moreover, domestic customers are more sensitive to changes in price and service rating whereas international customers are more responsive to changes in location rating. The results suggest that that domestic and international customers' online hotel booking behaviors show significant differences. Keywords: Online customer reviews and ratings; Domestic and international customer; Online hotel booking; Information asymmetry Literature Review The drivers of online sales have been extensively studied recently. For example, Forman et al. [2008] and Chevaliear and Mayzlin [2006] investigate the impact of consumer reviews and ratings on online sale of books. Ba and Pavlou [2002] find that customer ratings alleviate uncertainties between sellers and buyers in the ebay auctions and high seller ratings from previous buyers generate price premium for mitigating online transaction risk. Recently, researchers investigate customers' hotel booking behaviors in online channels. Cantallops and Salvi [2014] classified research as review generating factors and impacts of online reviews. Our paper is more related to the second line of research that investigated the impacts of online reviews on the behavior of consumers and hotel managers. Among these studies, Gu and Ye [2014] showed that while responses to customer reviews are influential for low satisfaction customers, its effect on other customers is limited. Furthermore, they found that there is a positive association between customers' future satisfaction and whether they receive responses to their complaints. Xie et al. [2011] showed that the presence of reviewer information positively influence reviewer's credibility.
doi:10.1016/j.sbspro.2012.09.1076 fatcat:eziqodh73barrlkvfkbcfr2ram