Role of e-WOM in hospitality market pricing

Abstract

Aim/purpose -Online assessments are one of the main factors determining a customer's choice of accommodation. This article examines their relationship to prices in the low and high season in Cracow's hospitality market. The question of which attributes in hotel ratings explain the change in price levels was investigated.Design/methodology/approach -The inference was based on ratings and hotel room offers published on the Booking.com platform. Data were collected and estimated for the representative number of 97 hotels in Cracow. Regression analysis was then used to estimate the model.Findings -The results of the analysis showed that price levels for the high and low seasons are correlated with ratings for comfort and location. It is more precise to use these variables as an explanation for prices in the high season. Guests' perceptions of comfort and location are combined with other hotel features.Research implications/limitations -The study showed which of the hotel parameters should be enhanced when rationally increasing price levels. The limitations of the study are that it covered only one Polish city, collected data from a single website, and omitted other variables to explain the prices of hotel rooms.Originality/value/contribution -This is one of the first papers to examine the correlation between electronic consumer ratings and price levels in the Polish hospitality market and one of few investigations based on the role of e-WOM for the pricing of all objects in the sector, not just for a specific category of hotels.

Assessing the Effects of COVID-19 on Accommodations Availabilities and Prices

“…According to an in-depth study of online evaluations, it was established that the positive reputation of the structures generates a substantial price increase and a significantly better occupancy rate than those with a lower evaluation [20]. Furthermore, taking into particular consideration a small number of hotels in Krakow, their ratings and prices both in the low and in the high season, it was highlighted that the rating is fundamental for hotels, especially in periods when the tourist flow is less concentrated [21].…”