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

TLDR

Price–perception relationships are a key topic in tourism, but their online dynamics remain poorly understood. Using 43,726 online reviews of 774 star‑rated hotels, this study empirically examined how price influences customers’ perceptions of service quality and value. Higher prices increase perceived quality but decrease perceived value, a pattern that is stronger for luxury hotels and business travelers, while the value effect is insignificant for leisure guests.

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.