The impact of price on hotel guest satisfaction
January 11, 2010 | Hospitality Industry
Studies show that perception influence guest’s purchasing decisions, and more than 50 percent of guests switch to other companies if they experience a poor price perception. Poor price perception also has an adverse effect on overall satisfaction and loyalty.
In a US national study, price was found to be the second most important factor in making a booking decision. This confirms the need for hospitality companies to offer a very strong price-value proposition, which includes superior service. Price has even been found to be more important than perceived quality, particularly when there is a price-performance inconsistency.
The price guests pay tend to influence value more than quality, which suggests that price satisfaction has a greater influence on loyalty than quality. However, it is important to understand that loyalty, which is a product of overall satisfaction (service, quality and price), is associated with more favorable price tolerance. This means that hospitality companies with more satisfied and loyal guests are able to charge a higher premium for the experience they offer.
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