Using a General Ordered Logit Model to Explain the Influence of Hotel Facilities, General and Sustainability-Related, on Customer Ratings

Abstract

The hotel market has become extremely competitive over the past years. Hotels try to differentiate themselves through their services and facilities. To make the best choice when searching for accommodation, guests increasingly use rating systems of booking sites. Using an ordered logit model (OLM), we identify, in our study, a sample that comprises of 635 hotels from Romania. These are the hotel facilities that significantly influence customer review scores (as an expression of customer satisfaction) on booking.com, the most widespread rating system. We also identify whether their impact on intervals of satisfaction levels vary. Some explanatory variables invalidate the Brant test for proportional odds assumption. Thus, for the final estimates, we use a generalized ordered logit model (GOLOGIT). The results show that food-related facilities, restaurants, and complimentary breakfasts, are very significant for customer ratings. Relevant hotel common facilities are the pool and parking spaces, while for the room—the flat-screen TV. It is interesting to note the negative influence of pets, which seem to disturb other tourists. In the sustainability category, only facilities for disabled people and electric vehicle charging stations are relevant.