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Price or Convenience: What Is More Important for Online and Offline Bookings? A Study of a Five-Star Resort Hotel in Taiwan

Author

Listed:
  • Yi-Man Teng

    (College of Commerce, Yango University, Fuzhou 350015, China)

  • Kun-Shan Wu

    (Department of Business Administration, Tamkang University, Taipei 25137, Taiwan)

  • Che-Yi Chou

    (Department of Business Administration, Tamkang University, Taipei 25137, Taiwan)

Abstract

Low price or convenience? What is more important for online and offline bookings? For the sustainable development of the hospitality industry, it is necessary to know the opinions of customers about their online/offline hotel booking experiences. This study aimed to predict the customers’ online/offline booking behavior toward a resort hotel in Taiwan by adapting the marketing mix elements. We first designed and executed a detailed questionnaire involving approximately 300 respondents from a five-star hotel in Taiwan, used hypothesis testing to extract important factors from the data, and finally used logistic regression of these factors to predict the customer choices effectively. The study results show that the majority of the customers believe that booking hotel services online provides for a broader choice, offers more discounts and more privacy than available while booking offline, and is cheaper, faster, and more reliable and convenient. The outcomes of logistic regression confirm that “broad choice,” but not “low price” has the most significant impact on the customers booking a resort accommodation online or offline. Furthermore, the results of the analysis of variance (ANOVA) show that the younger customers (under the age of 45) and those with university degrees are significantly more likely to make the reservations online for a resort. The findings and the recommendations can provide valuable inputs to the resort industry practitioners in Taiwan for improving the online booking services.

Suggested Citation

  • Yi-Man Teng & Kun-Shan Wu & Che-Yi Chou, 2020. "Price or Convenience: What Is More Important for Online and Offline Bookings? A Study of a Five-Star Resort Hotel in Taiwan," Sustainability, MDPI, vol. 12(10), pages 1-16, May.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:10:p:3972-:d:357167
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    References listed on IDEAS

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    1. Weizhao Huang & Jingna Wang & Jinbo Jiang & Jinwen Tang, 2021. "The role of procedural, financial and relational switching costs in the Chinese online hotel booking market: antecedents and consequences," Information Technology & Tourism, Springer, vol. 23(3), pages 439-470, September.

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