Determinants of customer loyalty and purchasing behavior for full-service and limited-service hotels

This study investigated factors that influence consumer purchasing decisions for two hotel segments: full-service and limited-service. Results from an online survey indicated that full-service hotel guests were more likely to be reward program members and be emotionally attached to their preferred brand. Price was the most important factor for limited-service guests' purchase decisions, while both price and utility were important for full-service guests. Limited-service guests had lower switching costs, that is, they required less of a discount to switch to a non-preferred brand than full-service guests. The findings have implications for hotel pricing and marketing strategies. (C) 2011 Elsevier Ltd. All rights reserved.