Relationships between Hotel Room Pricing, Occupancy, and Guest Satisfaction: A Longitudinal Case of a Midscale Hotel in the United States

Abstract

This case study examined the relationship among hotel room prices, occupancy percentage, and guest satisfaction using 3 years of data from 3,875 actual guest satisfaction surveys at an upper-midscale hotel. The study concludes that price was a significant predictor of overall guest satisfaction and three key guest-satisfaction components: guest room cleanliness, maintenance, and attentiveness of staff (with negative, curvilinear relationships in all cases). Conversely, occupancy percentage failed to be a significant predictor of guest satisfaction.