4.6 Article

The impact of partitioned pricing on hotel booking and the moderating effect of temporal distance

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Publisher

ELSEVIER SCI LTD
DOI: 10.1016/j.ijhm.2023.103621

Keywords

Partitioned pricing; Temporal distance; Cancellation; Payment time; Perceived unfairness; Hotel revenue management

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This study investigates the impact of partitioned pricing on consumer booking intentions in the context of hotel bookings. The findings suggest that partitioned pricing in the hotel industry negatively affects booking intentions due to the perception of unfairness. The study also reveals that temporal distance moderates the negative impact of partitioned pricing on booking intentions and uncovers asymmetrical consequences of payment timing across different booking windows.
Utilizing the distinctive context of hotel bookings, where fees hold notable prominence, this study investigates the impact of partitioned pricing on consumer booking intentions. Our findings reveal that partitioned pricing in the hotel industry adversely influences booking intentions due to the perception of unfairness, rather than the perception of price, as observed in retail studies. Furthermore, this research confirms that temporal distance moderates the negative impact of partitioned pricing on booking intentions, while also uncovering asymmetrical consequences of payment timing across varying booking windows. These insights contribute to a deeper un-derstanding of the conditional effects of partitioned pricing, thereby expanding the current pricing literature and offering valuable guidance for hotel industry professionals.

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