Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323410 
Year of Publication: 
2021
Citation: 
[Journal:] Croatian Review of Economic, Business and Social Statistics (CREBSS) [ISSN:] 2459-5616 [Volume:] 7 [Issue:] 2 [Year:] 2021 [Pages:] 50-60
Publisher: 
Sciendo, Warsaw
Abstract: 
This study examines the importance of online reviews for price determination in the hotel industry in the pre-pandemic period. The research is conducted for Croatian small open economy with a developed tourism sector. The paper fills the gap in existing literature by using multivariate principal component analysis to group various customer satisfaction categories in the hotel industry and assessing the relationship between customer satisfaction and hotel price. The conducted empirical analysis points to a positive statistically significant relationship of guest satisfaction and hotel prices. Moreover, linear regression modelling is conducted separately for four-star and five-star hotels. The estimated impacts are statistically significant and positive, but the effects are twice as strong in five-star hotels then in four-star hotels. The obtained results indicate that hotel star rating impacts the strength of the relationship between hotel prices and guest satisfaction. Recognizing the link between hotel ratings, online reviews and pricing is essential both for hotel managers and customers. Hence, the paper provides valuable conclusions from the aspect of supply and demand side in the hotel industry.
Subjects: 
customer satisfaction
hotel pricing
hotel star rating
multivariate analysis
principal component analysis
regression analysis
JEL: 
C38
L83
Z3
Z32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.