Customer Behaviour Towards Budget Hotels

by

Acknowledgement

Iwould take this opening to express gratitude my study supervisor, family and associates for their support and guidance without which this study would not have been possible.

DECLARATION

I, [type your full first titles and last name here], declare that the contents of this dissertation/thesis comprise my own unaided work, and that the dissertation/thesis has not before been submitted for learned written test towards any qualification. Furthermore, it comprises my own attitudes and not necessarily those of the University.

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Executive Summary

This paper investigates budget inns from the strategic perspective. The scribe argues that these inns comprise an innovative hospitality product concept and that the key to their financial success lies in a purpose-designed service product formula. Budget hotels are advised the outcome of sound strategic management conclusions in the worldwide hospitality commerce, and are glimpsed as a merchandise that is giving inn associations considerable development opportunities, both in household and worldwide markets, by expansion in a new market segment. Fairness perceptions play an significant function in customers' demeanour, and this study discovers which buyer characteristics leverage fairness insights of income management (RM) charge in the inn context. To examine such differentiating characteristics, the study conducts a logit investigation by matching two assemblys: one assembly of customers who address hotels ' RM practices to be fair and the Other assembly considers the practices to be unfair. The findings supply an opening for inn managers to identify customers' particular characteristics that sway customer's insights of the fairness of hotels ' RM charge practices. Finally, it is contended that the allowance inn merchandise concept boasts more worth for money to the new worth-conscious travellers, and why the product is verifying particularly thriving in pulling customers down from the full-service segment, and up from inexpensive places to stay is highlighted.

Table of Contents

CHAPTER ONE: INTRODUCTION7

Background7

Aims and Objectives of the Study7

Rationale7

CHAPTER TWO: LITERATURE REVIEW10

Introduction10

Budget Hotels10

Revenue Management12

Budget inns: A Strategic Innovation13

Branded Concept Issue15

Culture and philosophy15

Market Segment15

Service Concept16

Image16

Value For Money And Service Consistency17

Budget Hotels: Demand20

Fairness Perceptions Of Pricing23

Fairness insights Of RM charge In The Hospitality Industry26

Hypotheses29

Frequency Of Use: Familiarity Effect And cost Knowledge29

H131

Price Consciousness31

Demographic Background32

H333

H434

H534

H634

CHAPTER THREE: METHODOLOGY35

Introduction35

Quantitative Research35

Qualitative Research36

Research Method37

Survey Development40

CHAPTER FOUR: DISCUSSION AND RESULTS41

Primary Data41

Respondents' Profiles41

Main findings42

Secondary Data45

CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS49

Research Limitations51

REFERENCES52

APPENDIX64

Interview Questions64

Questionnaire66

Chapter One: Introduction

Background

During the last decade, against a background of economic recession, budget hotels have been one of the most successful phenomena in the European hotel industry. In recent articles they are often mentioned as a 'boom' or as representing one of the most significant trends in the international hospitality industry. However, a review of literature on strategic hospitality management indicates that the specific topic of budget hotels is a relatively recent one. Furthermore in many cases, when compared with the other up-market segments, budget hotels are often considered as only minor accommodation. This paper will argue that the budget hotel is not an insignificant hotel product, but that it represents a new concept of hospitality provision which relies on specific key factors and that is increasingly affecting the industry ...