The Influence of Hotel Price on Perceived Service Quality and Value in E-Tourism

Abstract

The relationship between price and postpurchase perceptions is an important topic in tourism and hospitality studies. However, little is known about how this relationship operates in an online context. Using 43,726 online reviews covering 774 star-rated hotels, this study empirically investigated the influence of price on customers’ perceptions of service quality and value. The results show that it has a positive impact on perceived quality but has a negative impact on perceived value. Price also has a more significant impact on perceived quality for higher-star, luxury hotels than lower-star, economy establishments. Additionally, it has a significant influence on perceived quality for business travelers but the equivalent value for leisure travelers is not significant.