Customer satisfaction & engagement behaviors towards the room rate strategy of luxury hotels

Purpose – This study investigates the attributes that impact hotel users’ experiences, satisfaction levels, and engagement behaviors through dimensions of the room rate strategy in the context of luxury hotels in Vietnam tourism market. Design/methodology/approach – A questionnaire was prepared, drawing from the scales in literature. A PLS-SEM tool was used to measure and test research hypotheses from the data set of 319 completed surveys in the online and offline form. Findings – The results indicate that higher the service quality towards dynamic hotel room rates, higher are customer satisfaction and engagement behaviors (CEBs). The significant perception of hotel users is mostly caused by “price fairness,” and it in turns, influences customer satisfaction levels. In particular, customer satisfaction serves as a partial mediation on customers’ perception of the hotel room rate strategy when service quality and CEBs are perceived. Originality – Understanding the variables that predict room rate strategy proposes suggestions for practitioners and hospitality researchers. This study empirically examines the extent to which factors discussed may influence the hotel room rate strategy accordingly to heighten customers’ satisfaction and engagement behaviors.