The role of trip purpose and hotel star rating on guests’ satisfaction and WOM

This paper aims to understand how guests’ trip purpose and hotel star rating influence the effects of the value for money perceived at hotels and service quality on guest satisfaction and word of mouth (WOM) recommendation.

Using TripAdvisor, 25 Singaporean hotels were randomly selected for the study, which yielded hotel reviews from 2,040 respondents. Hierarchical and logistic regression analysis was conducted to investigate the relationships proposed in the study.

Results indicate significant differences between leisure and business guests’ perception of value for money and service quality at hotels with various star ratings. While perceived value for money and service quality were found as significant predictors for both leisure and business guests’ satisfaction and WOM, the effects were moderated by the hotel star rating. Despite the significant effect of hotel star rating on guest satisfaction, the study found no significant relationships between hotel star rating and WOM for leisure and business guests.

The findings suggest that managers in the hotel industry should understand the purpose of guests’ trip and offer services based on their expectations. As the star rating of a hotel creates certain expectations for both leisure and business guests, providing an appropriate level of services and assuring value for money in accordance with the hotel rating contributes to guest satisfaction and WOM recommendation.

This study contributes to the hospitality literature by investigating how hotel star rating moderates the relationship of value for money and service quality on leisure and business guests’ satisfaction and WOM recommendation.