Modelling Chinese consumer choice behavior with budget accommodation services

This study aims to identify key factors influencing Chinese domestic travelers’ behaviors in hotel selection from a pool of budget hotel attribute-based factors and customer personal characteristics and determine the extent to which these factors impact on domestic Chinese travelers’ hotel selection preferences.

This study uses a discrete choice experimental design and a multinomial logit model to examine the key influential factors contributing to Chinese domestic travelers’ choice behavior to budget hotels. Both hotel attribute-based and personal trait factors were tested.

Results indicate that location, price and business functions were factors influencing guest choice behavior. For budget hotels, being located in the traditional central business districts and having a restaurant would leverage guest preference to stay. Among consumers’ personal characteristics, income, occupation, purpose of travel, personal attitude and past experience were found to be determinants of guest choice behavior.

This study contributes to the understanding of Chinese domestic travelers’ choice behaviors toward budget hotels and offers insights for industry practitioners to better design budget hotel products and service.

This research is the first that integrates hotel attributes with travelers’ characteristics and quantitatively evaluate the determinants affecting hotel choice behavior in China. The insights are of value academically to our understanding of cognitive mechanism underlying choice behavior.