Impact of Consumer Behaviour on Hotel Sales

Abstract

This paper proposes a conceptual framework to encapsulate our understanding of how consumers’ behavior influences sales in the hotel industry. By embracing a trade-off between price information and product information in hotels, we suggest that firms can better match consumer preferences and needs. The trade-off’s complexity is influenced by the prior knowledge of the consumer’s product and the level of sales in the competitive market. Our framework suggests that tour dealers generally tend to cognizance extra on charge advertising and marketing of their search ads, while lodges do not trade their stage of fee advertising in a competitive market. Extra curiously, opposition from tour sellers and lodges has exclusive consequences on the lodge sales by using travel retailers and lodges. Our observation provides vital insights in responding to distinctive marketplace situations, which enhance the information of firms’ behaviors in designing their sales strategies.