Research On The Influence Of Budget Hotel Characteristics On Room Rates

With the development of mass tourism,budget hotel came into being and developed rapidly.However,the quality and value for money of China's budget hotel is not high which affects consumer satisfaction so that the price advantage of the budget hotel has not been fully play and compared with developed countries,the market share of China's budget hotels is still low.To make reasonable pricing decisions,hotel managers must be concerned about which hotel characteristics will affect and how to affect room rates.To a certain extent,existing research on budget hotels not only shows the importance of hotel room pricing,but also concerns the factors influencing hotel room pricing from the perspective of supply side.However,there is no explanation on the characteristics of budget hotels and their impact on the hotel room rates.The existing researches on hotel pricing mainly focus on the research of pricing methods,the establishment of pricing models and the empirical research.These studies either provide pricing suggestions from the perspective of supply,or study consumer's perception of pricing policy from the demand side.Based on the above research,the existing research on the relationship between hotel characteristics and room pricing explains the impact of hotel characteristics on hotel room rates.However,the study objects are mainly high-end hotels and these research less concerned about Chinese context.In addition,as the existing research in this field used the publication data more,the timeliness and reliability is insufficient and cannot reflect consumers' real willingness to pay.In order to solve these problems,this thesis takes Shanghai hotels as the research object,and uses the network to obtain data of hotel characteristics and room rates.Through the establishment of the hedonic price model,the thesis analyzes the influence of the budget hotel characteristics on the room rates.It is found that three types of hotel characteristics have significant influence on room rates,namely,structural features,location characteristics and reputation characteristics;the semi-logarithmic model is the optimal model to study the pricing of hotel rooms in Shanghai;there are differences in significant characteristics between budget hotels and middle and high-end hotels,and for the same characteristics,the influential level is different.On the one hand,the results of this study can help budget hotel consumers to compare the relationship between different product characteristics and room rates to improve the efficiency of decision-making.On the other hand,it can also rationalize pricing for budget hotel managers,improve hotel products and service quality as well as consume satisfaction and deal with competitive pressures.