Hoteltonight Usage And Hotel Profitability

Keywords

Average daily rate; Last-minute hotel reservation mobile apps; Net operating income; Occupancy

Abstract

Purpose: The purpose of this study is to empirically evaluate the influence of a hotel’s listing on the last-minute hotel booking app, HotelTonight, and average daily rate (ADR) on the hotel’s net operating income (NOI). The study examines the mediating effect of hotel occupancy rate on the relationships between ADR and hotel app usage in terms of NOI. Design/methodology/approach: The data for the study was graciously provided by Smith Travel Research, Inc. for 80 hotels located in the top Florida destinations listed on the HotelTonight app. Hierarchical multiple regression with a mediation effect was used in the study to test the mediating effect of occupancy between hotel app usage and ADR with NOI. Findings: The research results show a positive association between a hotel’s HotelTonight listing and ADR in terms of its NOI. Occupancy is found to have a full mediation effect between a hotel’s usage of the mobile app and NOI. Originality/value: Mobile apps that specialize in last-minute hotel bookings have proliferated in recent years by providing hotels a mobile platform to increase hotel occupancy. However, there is a dearth of studies examining the effect these apps have on a hotel’s bottom line profitability or NOI.

Publication Date

1-1-2016

Publication Title

Journal of Hospitality and Tourism Technology

Volume

7

Issue

3

Number of Pages

313-327

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1108/JHTT-12-2015-0050

Socpus ID

84984596162 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/84984596162

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