The Market Segment and Willingness to Pay for the Hotel Room During the COVID-19 Situation in Thailand
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Published:
Dec 30, 2021
Keywords:
market segment, willingness to pay (WTP), hotel business, COVID-19 situation
Main Article Content
Abstract
The purposes of this study were 1) to study the situation and identify the market segment of hotel business management during the COVID-19 situation and 2) to elicit the willingness to pay for the hotel room of the consumers during the COVID-19 situation. The study focused on the hotel management how the hotel entrepreneurs can survive and maintain their business. Overall, the business performance is decreasing more than 70%. Although, the COVID-19 situation influences the purchasing power, there is the demand for tourism and hotel from the consumers. Many hotel entrepreneurs provide the marketing promotion coporated with the government and privacy organizations to attract the local tourists to join the tourist programs. This study also studied the percentage of discount effecting segment of each target hotel and the consumers’ willingness to pay. The data was collected by in-depth interviews from 5 experts in the hotel business and 400 questionnaires from the samples selected by an accidental sampling technique and a specific process of data collection. The data was analyzed by the using a Contingent Valuation method.
The findings revealed that apart from the cost of hotel room, the samples expressed their interests in an additional offered services from the hotel. They satisfied new experiences included the specialty room, surrounding spaces decoration, and convenient services. The safety procedures to deal with the infection of COVID-19 during the time of staying was the most factor for consideration.The samples were able and willing to pay when the hotel offered the special discount. The significant discount percentage that they were willing to pay were 35% and 45%.
Article Details
Section
Research articles
References
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210-219.
Sharma, P., & Nayak, J. K. (2019). Understanding memorable tourism experiences as the determinants of tourists’ behaviour. International Journal of Tourism Research, 21(4), 504–518. https://doi.org/10.1002/jtr.2278
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Stephanie, H., Stephen, J. P., & Dimitrios, B., (2013) Social media as a destination
Marketing tool: its use by national tourism organisations, Current Issues in Tourism, 16:3, 211-239, DOI: 10.1080/13683500.2012.662215.
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Responsive Market Orientation, Seven Marketing Activities Lever (7As), and Expectation of Service: An Empirical Evidence from 3-5-star Hotels Business in Thailand. Journal of Modern Management Science,12,149-172.
Thongrawd, C., Ramanust, S., Narakorn, P., & Seesupan, T. (2020). Exploring the Mediating Role of Supply Chain Flexibility and Supply Chain Agility between Supplier Partnership, Customer Relationship Management and Competitive Advantage. Int. J Sup. Chain. Mgt, 9(2), 435.
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2020, https://doi.org/10.1596/34047
Discussion Papers, No.13568, Institute of Labor Economics (IZA), Bonn.
Barber, N., Kuo, P., Bishop, M. and Goodman, R. (2012), “Measuring psychographics to assess
purchase intention and willingness to pay”, Journal of Consumer Marketing, Vol. 29 No. 4, pp. 280-292. https://doi.org/10.1108/07363761211237353
Beckers, S. F., Van Doorn, J., & Verhoef, P. C. (2018). Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value. Journal of the Academy of Marketing Science, 46(3), 366–383. https://doi.org/10.1007/s11747-017-0539-4
Cholprasertsuk, A., Lawanwisut, C., & Thongrin, S., (2020). Social Media Influencers and Thai
Tourism Industry: Tourists’ Behavior, Travel Motivation, and Influencing Factors. Journal of Liberal Arts, Thammasart University 20(2), 234-263. https://doi.org/10.14456/lartstu.2020.21
Chula, S. (2020). (Abolished) The Notification on Conditions for International Flight Permit to
Thailand; Thailand local time onwards. Issued on 29 June B.E. 2563 (2020). Doi: https://www.caat.or.th/en/archives/51825.
Daiva, L., Mariantonietta, F., Rimantas, S., (2020). Use of E-marketing tools as communication
management in the tourism industry, Tourism Management Perspectives, Volume
34,2020,100652, ISSN 2211-9736, https://doi.org/10.1016/j.tmp.2020.100652.
Fangxuan, S. Li., Chang, L. He., & Guanghui, Q., (2020). Attributes that form romantic travel
experience: a study of Chinese Generation Y tourists, Current Issues in Tourism, DOI: 10.1080/13683500.2020.1820456
Goetz, K., Kleine‐Budde, K., Bramesfeld, A., & Stegbauer, C. (2018). Working atmosphere, job satisfaction and individual characteristics of community mental health professionals in integrated care. Health & Social Care in the Community, 26(2), 176–181.
Gil, J. M., Gracia, A., Sánchez, M., (2000). Market segmentation and willingness to pay for
organic products in Spain.The International Food and Agribusiness Management
Review, Volume 3, Issue 2, 2000, Pages 207-226, ISSN 1096-7508,
https://doi.org/10.1016/S1096-7508(01)00040-4.
Hays, S., Page, S., & Buhalis, D. (2012). Social media as a destination marketing tool: An exploratory study of the use of social media among National Tourism. Current Issues, 16(3), 211–239.
Industry T. (2021).” 2021-2023 THAILAND INDUSTRY OUTLOOK,” Krungsri Research Center,
January 2021. [Online]. Available: https://www.krungsri.com/en/research/industry/Industry-Horizon/industry-summary-outlook-2021-2023
Jeff, P. (2020). “How COVID-19 Will Change the Thailand Tourism Sector,” Thailand Business
News. [Online]. Available: https://www.thailand-business-news.com/tourism/79048-how-COVID-19-will-change-the-thailand-tourism-sector.html
JLL Commercial Property, (2019). “Thailand Hotel Market Research” Research Report, May
2019. [Online]. Available: http://market.sec.or.th/public/ipos/IPOSGetFile.aspx?TransID=250826&TransFileSeq=58
Johansson, M. (2017). Mobility as a Service: Exploring Young People’s Mobility Demands and
Travel Behavior (Dissertation). Retrieved from http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-215509
Jones, P. C., (2018). Contingent valuation. Encyclopedia Britannica.
https://www.britannica.com/topic/contingent-valuation (2018, December 5).
Kariyapol, T., & Agarwal, R., (2020). Economic Benefits and Consequences of Tourism in
Developing Countries: A Case of Thailand. Sripatum Review of Humanities and Social
Sciences, 20(1), 180-192. Retrieved from https://so05.tci-thaijo.org/index.php/spurhs/article/view/227537
Kyung, H. K., Laura, S., Cindy, Y. H., Seoki, L., (2012). Consumers’ willingness to pay for green
initiatives of the hotel industry, International Journal of Hospitality Management, Volume 31, Issue 2, 2012, Pages 564-572, ISSN 0278-4319, https://doi.org/10.1016/j.ijhm.2011.08.001.
Manosuthi, N., Lee, J. S., & Han, H. (2020a). Impact of distance on the arrivals, behaviours and attitudes of international tourists in Hong Kong: A longitudinal approach. Tourism Management, 78, 1–26. https://doi.org/j.tourman.2019.103963
Manosuthi, N., Lee, J. S., & Han, H. (2020b). Predicting the revisit intention of volunteer tourists using the merged model between the theory of planned behavior and norm activation model. Journal of Travel & Tourism Marketing, 37(4), 510–532. https://doi.org/10.1080/10548408.2020.1784364
Manosuthi, N., Lee, J. S., & Han, H. (2021). An innovative application of composite-based structural equation modeling in hospitality research with empirical example. Cornell Hospitality Quarterly. https://doi.org/10.1177/1938965520951751
María-Mercedes, R., Pilar, A., (2020). Importance of family for individual tourist satisfaction,
Annals of Tourism Research,Volume 85, 2020,103031,ISSN 0160-7383, https://doi.org/10.1016/j.annals.2020.103031.
Naciye, G. U., Adem, A., Tour M. P., (2020). Published online 2020 Sep 6. doi:
10.1016/j.tmp.2020.100744. PMCID: PMC7474895.
Navarro, M., & Pérez-Aranda, J., (2020). Analyzing Willingness to Pay More to Stay in a
Sustainable Hotel. Sustainability. 12. 3730. 10.3390/su12093730.
Neslihan, P., Ceren, A. V., (2016). Customer segmentation for marinas: Evaluating marinas as
destinations, Tourism Management, Volume 56, 2016, Pages 156-171, ISSN 0261-5177, https://doi.org/10.1016/j.tourman.2016.03.024.
Poum, T. (2021). The Paradox of Thailand’s Success in Controlling COVID-19. Asian Economic
Papers 2021; 20 (1): 175–199. doi: https://doi.org/10.1162/asep_a_00799
Pullawach, P. (2020). “EIC Hotel business strategies through the crisis suggestion COVID-19,” SCB Economic Intelligence Center, April 2020. [Online]. Available: https://www.scbeic.com/th/detail/file/product/6759/fmdcl4fcu1/EIC-Note_Hotel_COVID19_20200410.pdf
Puttachard, L. (2021). “Tourism & Hotel industry in the post-COVID world,” Krungsri Research
Center, January 2021. [Online]. Available: https://www.krungsri.com/en/research/research-intelligence/ri-future-of-tourism-21
Puttachard, L. (2021). “Industry Outlook 2021-2023: Hotel Industry,” Krungsri Research Center,
February 2021. [Online]. Available: https://www.krungsri.com/en/research/industry/industry-outlook/Services/Hotels/IO/io-hotel-21
Richard, T. (2000). Carson Environmental Science & Technology 2000 34 (8), 1413-1418
DOI: 10.1021/es990728j
Sharafuddin, M. Ali., (2015). Types of tourism in Thailand. e-Review of Tourism Research. 12.
210-219.
Sharma, P., & Nayak, J. K. (2019). Understanding memorable tourism experiences as the determinants of tourists’ behaviour. International Journal of Tourism Research, 21(4), 504–518. https://doi.org/10.1002/jtr.2278
So, K. K. F., King, C., Sparks, B. A., & Wang, Y. (2016). The role of customer engagement in building consumer loyalty to tourism brands. Journal of Travel Research, 55(1), 64–78. https://doi.org/10.1177/0047287514541008
Stephanie, H., Stephen, J. P., & Dimitrios, B., (2013) Social media as a destination
Marketing tool: its use by national tourism organisations, Current Issues in Tourism, 16:3, 211-239, DOI: 10.1080/13683500.2012.662215.
Sutapa, A., et al. (2016). “Insight Thai Tourism : Sustaining Success” SCB Economic Intelligence
Center, [Online]. Available: https://www.scbeic.com/en/detail/file/product/2953/ekn1rppsq7/EIC_Insight_ENG_Tourism_2016.pdf
Tepeci, M. (1999). “Increasing brand loyalty in the hospitality industry” International Journal of
Contemporary Hospitality Management 11. 223-230. 10.1108/09596119910272757
Thawit, B., Narisara, S., Chutimar, R., (2019). The Relationship between Proactive and
Responsive Market Orientation, Seven Marketing Activities Lever (7As), and Expectation of Service: An Empirical Evidence from 3-5-star Hotels Business in Thailand. Journal of Modern Management Science,12,149-172.
Thongrawd, C., Ramanust, S., Narakorn, P., & Seesupan, T. (2020). Exploring the Mediating Role of Supply Chain Flexibility and Supply Chain Agility between Supplier Partnership, Customer Relationship Management and Competitive Advantage. Int. J Sup. Chain. Mgt, 9(2), 435.
Tris Rating, (2021). “Hotel outlook remains negative,” NEWSPAPER SECTION: BUSINESS. [Online].
Available:https://www.bangkokpost.com/business/2114319/hotel-outlook-remains-negative
World Bank Group, (2020). Thailand in the Time of COVID-19, Thailand Economic Monitor, June
2020, https://doi.org/10.1596/34047