Short answer

Segment your target audience and design/market hotel features that directly address their prioritized needs and desires, rather than assuming a one-size-fits-all approach.

Field
Innovation & Markets
Source
Journal Of Vacation Marketing (2018)
Method
Best-Worst Scaling (BWS)
Sample
748 participants (397 luxury hotel customers, 351 economy hotel customers)
Evidence
Strong effect

Understanding distinct traveler priorities is crucial for effective market segmentation and targeted hospitality offerings. This innovation & markets research insight is drawn from a 2018 study published in Journal Of Vacation Marketing. Using Best-worst scaling (bws) with 748 participants (397 luxury hotel customers, 351 economy hotel customers), researchers explored how this design variable affects real-world outcomes. The key design takeaway: Segment your target audience and design/market hotel features that directly address their prioritized needs and desires, rather than assuming a one-size-fits-all approach.

Study
Innovation & MarketsHigh ImpactStrong effect

Hotel attribute importance varies significantly between luxury and economy segments

Understanding distinct traveler priorities is crucial for effective market segmentation and targeted hospitality offerings.

Journal Of Vacation Marketing · 2018

01

Key Findings

  • 01Luxury and economy hotel customers perceive hotel attributes differently.
  • 02Sociodemographic factors (gender, income) and behavioral factors (frequency of purchase) influence traveler assessments of hotel attributes.
02

Application

Design takeaway

Segment your target audience and design/market hotel features that directly address their prioritized needs and desires, rather than assuming a one-size-fits-all approach.

How to apply

Conduct attribute importance research using methods like BWS or conjoint analysis before designing new hotel concepts or renovating existing ones, ensuring alignment with target market preferences.

Project actions

  • 01Clearly define your target user group before researching their needs.
  • 02Use surveys or interviews to ask users to rank or compare features.
03

Method & Evidence

AimTo identify the most and least important hotel selection attributes for luxury and economy travelers and to understand how sociodemographic and behavioral characteristics influence these preferences.
MethodBest-Worst Scaling (BWS)
ProcedureParticipants were presented with sets of hotel attributes and asked to identify the best (most important) and worst (least important) attribute in each set. This was repeated across multiple sets to derive overall attribute rankings.
Sample748 participants (397 luxury hotel customers, 351 economy hotel customers)
ContextHospitality industry, hotel selection

Variables

IV["Hotel segment (luxury vs. economy)","Sociodemographic characteristics (gender, income)","Behavioral characteristics (frequency of purchase)"]
DVRank/importance of hotel attributes
04

Strengths & Limitations

Strengths

  • +Employs a robust scaling method (BWS) for attribute prioritization.
  • +Investigates the influence of demographic and behavioral factors on preferences.

Limitations

It can be difficult to get a large enough and representative sample of users for your research.

Reliability & validity

The use of Best-Worst Scaling provides a structured approach to derive interval-level preference data, enhancing the reliability of attribute rankings. Validity is supported by the differentiation found between distinct customer segments.

Think critically

How might the identified differences in attribute importance between luxury and economy segments be addressed through innovative design solutions that cater to both, or perhaps create new niche markets?

05

Design Principles

"Attribute salience is context-dependent and must be empirically determined for specific market segments."

Designers and marketers in the hospitality sector must recognize that 'hotel attributes' are not universally valued. Tailoring design choices and marketing messages to the specific preferences of luxury versus economy travelers can lead to more successful product development and customer acquisition strategies.

06

What This Means for Your Design

Different types of travelers care about different things when choosing a hotel. Designers need to figure out what's most important to their specific customer group.

How to use in your project

  • 1.Use this research to justify why you focused on certain design features over others based on your target user's stated preferences.
07

Add to My Project

08

Quick Cite

Paragraph starter

Research indicates that user preferences for product attributes are highly segment-specific. For instance, in the hospitality sector, luxury and economy hotel customers demonstrate distinct priorities regarding hotel features, influenced by factors such as income and purchasing frequency. This highlights the critical need for designers to conduct targeted user research to identify and prioritize attributes that resonate most strongly with their specific target market, ensuring that design decisions are aligned with user needs and market demands.

09

Source

Journal Of Vacation Marketing

Luxurious or economical? An identification of tourists’ preferred hotel attributes using best–worst scaling (BWS)

journal · 2018

View source

Questions About This Research

What does the research say about hotel attribute importance varies significantly between luxury and economy segments?
Segment your target audience and design/market hotel features that directly address their prioritized needs and desires, rather than assuming a one-size-fits-all approach. Evidence: Journal Of Vacation Marketing (2018).
Why does "Hotel attribute importance varies significantly between luxury and economy segments" matter for design?
Designers and marketers in the hospitality sector must recognize that 'hotel attributes' are not universally valued. Tailoring design choices and marketing messages to the specific preferences of luxury versus economy travelers can lead to more successful product development and customer acquisition strategies.
How can designers apply this research?
Segment your target audience and design/market hotel features that directly address their prioritized needs and desires, rather than assuming a one-size-fits-all approach.
What were the main findings?
Luxury and economy hotel customers perceive hotel attributes differently.. Sociodemographic factors (gender, income) and behavioral factors (frequency of purchase) influence traveler assessments of hotel attributes.
What research method was used?
Best-Worst Scaling (BWS) with 748 participants (397 luxury hotel customers, 351 economy hotel customers).
How strong is the evidence?
Evidence strength is rated Strong effect, based on a 2018 journal from Journal Of Vacation Marketing.
What should I do differently in my next project?
Conduct attribute importance research using methods like BWS or conjoint analysis before designing new hotel concepts or renovating existing ones, ensuring alignment with target market preferences.
What are the limitations?
The study focused on US customers, and findings may not generalize to other cultural contexts. The specific attributes considered were predefined by the researchers.