Work

The influence of price dispersion and price fairness on the choice of hotel and OTA: The moderating effect of hotel star classification

Year: 2026

Type: article

Abstract: This study applies Prospect Theory to examine how star rating classification affects the relationship between price dispersion, price fairness, and customers' decisions when choosing a hotel and booking channel. Data were collected from 207 hotel customers using Trivago’s metasearch engine in a scenario-based experimental design to test the hypotheses. The findings show that star ratings significantly influence hotel booking choices, with customers favouring cheaper options in wide price dispersion scenarios and more expensive options in narrow price dispersion scenarios. This study contributes to the literature by extending Prospect Theory to metasearch platforms and revealing how star ratings moderate the effects of price dispersion and fairness on the booking channel. The results provide valuable insights for hotel managers and online travel agency practitioners in developing effective marketing and pricing strategies.

Source: European Journal of Tourism Research

DOI: 10.54055/ejtr.v42i.4172

Authors: Paulo Rita, Ricardo Ramos, Celeste Vong, Claudia Barreiros

Institutions: Universidade Nova de Lisboa, Iscte – Instituto Universitário de Lisboa, Polytechnic Institute of Coimbra, Research Center for Natural Resources, Environment and Society

Language: English

Topic: Consumer Market Behavior and Pricing

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

Funder: Fundação para a Ciência e a Tecnologia