Quality and Pricing in the Hotel Industry

An Analysis of Word-of-Mouse Ratings and Guest Comments of Online Hotel Distribution Sites

“…Henley et al (2004) found a relationship between hotel ratings and the pricing behavior of the hotels. They found that hotels anticipating improved ratings raised room rates, and hotels predicting lower ratings lowered their room rates.…”

“…(Ingram, 1996;Vallen & Vallen, 2005;Yu, 1992). While rating systems worldwide vary, all have traditionally relied on "experts" to evaluate and rate hotels and other forms of lodging accommodations (Haussman, 2008;Henley, Cotter, & Herrington, 2004). In the past, consumers had little influence or effect on hotel ratings.…”

A demand-driven analysis of tourist accommodation price: A quantile regression of room bookings

“…To find out the relationship between price and quality in the hospitality industry, Henley et al (2004) analyzed pricing behaviors of hotel management before and after quality change. Empirical findings showed that hotels raise prices before gaining a star and reduce prices before losing a rank.…”

Hotel maintenance management in Sanya, China

“…However, as the uptake for accreditation under the Chinese star rating system increases, future customers will utilize the rating system and use it to pick up signals of poor service quality. These factors will affect the hotel's earning potential indicating that maintenance to a sufficient standard will attract customers (Henley, Cotter and Herrington, 2004). Therefore, this research will examine factors related to hotel management, focusing on how hotels can achieve efficient maintenance strategies whilst ensuring business profits.…”