A fad or the future? Examining the effectiveness of virtual reality advertising in the hotel industry

New virtual reality technology presents hotels with wide-ranging marketing, training, and customer service opportunities. The purpose of this study was to explore both the immediate and delayed effects of hotel VR commercials as compared to traditional video commercials. Based on the perceptual load theory and elaboration likelihood model, this study designed and conducted a 2 x 2 laboratory experiment with two stages of data collection. The study demonstrated that VR commercials produced better immediate effects than the traditional commercials, especially for participants with high elaboration likelihood levels. However, the findings also revealed significant decreases in purchase intention among participants watching VR commercials and a significant improvement in attitudes among participants watching traditional commercials. Both theoretical and practical implications were discussed to leverage the power of VR in marketing.