Acta turistica, Vol. 36 No. 2, 2024.
Original scientific paper
https://doi.org/10.22598/at/2024.36.2.143
DO HOTEL QUALITY SIGNALS REFLECT IN THEIR PRICES? EVIDENCE FROM BOSNIA AND HERZEGOVINA
Esmeralda Marić
; School of Economics and Business Sarajevo, Sarajevo, Bosnia and Herzegovina
Abstract
This study investigates the impact of quality signaling factors, such as online guest ratings, sustainability labels, free cancellation policies, and star ratings, alongside the effect of destination on room rates in hotels from the Federation of Bosnia and Herzegovina. The study employs a hedonic pricing model, emphasizing its specificities and potential risks inherent to the context of developing countries, primarily focusing on the presence of imperfect information conditions. According to the findings, room rates exhibit significant differences across distinct destinations within the region and among various hotel categories represented by star ratings. Furthermore, the results indicate that the sustainability label increases room rates significantly, as does the online guest rating for a particular location. Conversely, free cancellation policies and other online guest ratings do not influence pricing. This research could potentially point to pricing errors or unrealistic expectations, which all align with the notion of imperfect information conditions.
Keywords
hedonic pricing; hospitality industry; electronic word of mouth (e-WOM); service quality
Hrčak ID:
324493
URI
Publication date:
20.12.2024.
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