Same-day discounting’s effect on consumers’ evaluations of a hotel

Abstract

The purpose of this study is to explore whether the same-day discounting strategy affects customers’ evaluations of a hotel, especially in the case of hotels differing in brand and class. In particular, the current study aims to identify external cues that might influence customers’ perceptions of the relationship between hotels’ discounted rates and evaluation of the product. Using mobile exclusive data collected from one of the same-day booking applications, the current study found the interaction effects of hotel brand and class on the relationship between discounting and customers’ evaluations of a hotel. The findings of this study could provide hoteliers with valuable insights into effective implementation of same-day booking strategies on mobile platforms.