Attractiveness of hotel’s price framing method : a case study of Thai customer

Abstract

Tourism Authority of Thailand strongly illustrates the annually domestic travel growththat helps drive Thailand's economy. Thus, hotels in Thailand should also pay attention to attractThai traveler market. Attractive pricing is one of the factors to draw attention from travelers. Itis essential for hotels to apply effective pricing methods to generate sustainable profit. However,there was a limited study related to hotel’s price framing methods focusing on Thai travelermarket. Therefore, the purpose of this study was to examine the attractiveness of the hotel’sprice framing methods among Thai travelers. This research use an online survey to identify theattractiveness of the hotel’s price framing method and travel behaviour of Thai travelers. Thequestionnaire survey was distributed through social media platforms and collected data from607 respondents who are Thai travellers who purchased from different hotel levels. The datawas analyzed using descriptive statistics and One-Way ANOVA.The results revealed that the most attractive hotel’s price framing methods for Thaitravelers were discount, bundle, reward, and auction-based framing. The discount framing ofthe high-price hotels should apply a dollar-off discount framing, whereas the low-price hotelsuse a percentage-off discount. Furthermore, the bundle framing, especially an all-inclusivepackage, should employ to the mid-price hotels. Additionally, the mid-price and high-pricehotels could attract Thai travelers by offering resort credit. Besides, the ‘buy one get one free’campaign was powerfully attractive to all hotel levels. Hotels and accommodation businessesmay use the result of this research to create strategic prices and promotions for Thai travelersthat would help them to sustain incremental revenue.