Price and guest ratings are more important than brand equity when choosing where to stay, according to a new study of more than 900 consumers of Expedia Group travel platform brands. and Unabashed Research.
This study also found that price is the decisive factor when choosing hotels . Promotions and discounts represent the real value to guarantee the attention of hotel customers when selecting a property. This shows that independent hotels today can compete with their chain counterparts.
“While consumers want the best deals on travel bookings, their individual final choices reflect their values ,” said Abhijit Pal, Expedia Group’s head of research. “Consumers seeking budget accommodation will choose the best value within their limitations , while someone with more disposable income may prefer a luxury option and is willing to pay more per night, but not more than what they owe.”
According to the study, there is a 72% probability that future consumers will value the review more than the hotel brand. In fact, they are willing to pay more when they see higher-rated reviews , even when compared to premium brands. In general, consumers would pay more for a hotel with higher guest ratings: 24% in properties with a 3.9 rating compared to one with a 3.4; and 35% more in accommodations with a 4.4 compared to one that has a rating of 3.9.
“Guest reviews essentially leveled the playing field for independent hotels . More and more potential clients are looking for third-party endorsements for the choice of hotels they are looking for,” said Abhijit Pal. “Today, independent hostels can compete on a global scale with brands since the distribution and technology allow them, while the quality they deliver is under their control,” he explained.
The traditional accommodation service, providing a good night’s rest in a clean and functional room, along with the availability of an excellent breakfast, remains essential to customer satisfaction.
Room image, hotel brand, category (stars), guest ratings, renovations, and pricing are some of the key attributes guests use to select hotels. The first three had less importance as individual characteristics in terms of the possibility of selection. However, they can help influence the decision when combined with strong features in other attributes.
