This case study examined the relationship among hotel room prices, occupancy percentage, and guest satisfaction using 3 years of data from 3,875 actual guest satisfaction surveys at an upper-midscale hotel. The study concludes that price was a significant predictor of overall guest satisfaction and three key guest-satisfaction components: guest room cleanliness, maintenance, and attentiveness of staff (with negative, curvilinear relationships in all cases). Conversely, occupancy percentage failed to be a significant predictor of guest satisfaction.
Barta, P.
, & Chaker, A. M. (2001, May 21). Consumers voice rising dissatisfaction with companies. The Wall Street Journal, p. A2.
2.
Bojanic, D. C.
(1996). Consumer perceptions of price, value and satisfaction in the hotel industry: An exploratory study. Journal of Hospitality & Leisure Marketing, 4(1), 5-22.
3.
Cadotte, E. R.
, & Turgeon, N. (1988). Key factors in guest satisfaction. Cornell Hotel & Restaurant Administration Quarterly, 29(1), 45-50.
4.
Cadotte, E.
, Woodruff, R., & Jenkins, R. (1987, August). Expectations and norms in models of consumer satisfaction. Journal of Marketing Research, 24, 305-314.
5.
Dodds, W.
, Monroe, K., & Grewal, D. (1991, August). Effects of price, brand and store information on buyers' product evaluations. Journal of Marketing Research, 28, 307-319.
6.
Dube, L.
, Enz, C. A., Renaghan, L. M., & Siguaw, J. A. (1999). American lodging excellence: The key to best practices in the U.S. lodging industry. Washington, DC: American Hotel Foundation.
7.
Dube, L.
, & Renaghan, L. M. (2000). Creating visible customer value: How customers view best-practice champions. Cornell Hotel & Restaurant Administration Quarterly, 41(1), 62-72.
8.
Enz, C.
, Potter, G., & Siguaw, J. (1999). Serving more segments and offering more products: What are the costs and what are the profits?Cornell Hotel & Restaurant Administration Quarterly, 40(6), 54-63.
9.
Gundersen, M.
, Heide, M., & Olsson, U. (1996). Hotel guest satisfaction among business travelers. Cornell Hotel & Restaurant Administration Quarterly, 37(2), 72-81.
10.
Hotels survey: Suite dreams
. (2001, July). Consumer Reports, 12-18.
11.
Lewis, R.
, & Shoemaker, S. (1997). Price-sensitivity measurement: A tool for the hospitality industry. Cornell Hotel & Restaurant Administration Quarterly, 38(2), 44-54.
12.
Lomanno, M. V.
(2000). Smith travel research: Daily hotel-performance data shows consistent occupancy rates. Hotel & Motel Management, 215(7), 30.
13.
Mattila, A.
(1999). Consumers' value judgments. Cornell Hotel & Restaurant Administration Quarterly, 40(1), 40-46.
14.
Oh, H.
(1999). Service quality, customer satisfaction, and customer value: A holistic perspective. International Journal of Hospitality Management, 18, 67-82.
15.
Oh, H.
(2000). The effects of brand class, brand awareness and price on customer value and behavioral intentions. Journal of Hospitality & Tourism Research, 24(2), 136-162.
16.
Oh, H.
, & Parks, S. C. (1997). Customer satisfaction and service quality: A critical review of the literature and research implications for the hospitality industry. Hospitality Research Journal, 20(3), 35-64.
17.
Oliver, R. L.
(1997), Satisfaction: A behavioral perspective on the consumer. New York: McGraw-Hill.
18.
Parasuraman, A.
, Berry, L. L., & Zeithaml, V. A. (1991, spring). Understanding customer expectations of service. Sloan Management Review, 39-48.
19.
PKF Consulting
. (1999). Trends in the hotel industry. San Francisco: Hospitality Asset Advisors.
20.
Pugh, S.
(2001). Service with a smile: Emotional contagion in the service encounter. Academy of Management Journal, 43(3) 335-344.
21.
Rafaeli, A.
, & Sutton, R. (1990). Busy stores and demanding customers: How do they affect the display of positive emotion?Academy of Management Journal, 33(3), 623-637.
22.
Rao, A.
, & Monroe, K. (1989, August). The effects of price, brand name, and store name on buyers' perceptions of product quality: An integrative review. Journal of Marketing Research, 26, 351-357.
23.
Swan, J.
, & Trawick, F. (1981). Disconfirmation of expectations and satisfaction with a retail service. Journal of Retailing, 57(3), 49-67.
24.
Sutton, R.
, & Rafaeli, A. (1988). Untangling the relationship between displayed emotions and organizational sales: The case of convenience stores, Academy of Management Journal, 31, 461-487.
25.
Vallen, G. K.
, & Vallen, J. J. (1996). Check-in check-out (5th ed.). Chicago: Irwin.
26.
Voss, G.
, Parasuraman, A., & Grewal, D. (1998, October). The roles of price, performance, and expectations in determining satisfaction in service exchanges. Journal of Marketing, 62, 46-61.
27.
Yuksel, A.
, & Yuksel, F. (2001). The expectancy-disconfirmation paradigm: A critique. Journal of Hospitality & Tourism Research, 25(2), 107-131.
28.
Zeithaml, V.
, & Bitner, M. (2000). Services marketing: Integrating customer focus across the firm. New York: McGraw-Hill.
29.
Zickefoose, J.
(2001, April). Budget building. Lodging Hospitality, 32-34.