The purpose of this study aims to find factors influencing Thai consumers' behavior towards hotel reservation through online channel. The scope of this research is to identify and understand the factors that influence the decision to choose online channel to book hotel reservation in Thailand. Therefore, the future research should focus on collecting data from different age groups and observing other factors in order to understand more with consumer behavior in relation to online hotel reservation in Thailand.
The study on factors influencing consumer behavior towards online hotel booking is being conducted due to the increase in the number of Thai people booking hotels and resorts through the online channel. Research has shown that in the past twelve months in Thailand, the top 5 categories of Thai people spending money through online channels are: clothing, shoes and accessories (55%), cosmetics (43%), travel accommodation, transportation ( such as hotel, tours, airlines) (39%), computers and electronic devices (38%), and digital, downloading and online (34%). The main objective of this study is: “What are the key factors that influence consumers to book hotels through the online channel in Thailand?” and “What are consumer behavior and intentions in the decision-making process regarding online hotel reservations?”.
To identify the key factors that influence consumers to make hotel reservations through the online channel.
Expected Benefits
LITERATURE REVIEW
- Purchase Funnel
- Traditional Purchase Funnel
- The Modern Purchase Funnel
- Pre-awareness: The consumer has had no previous awareness with brand or service
- Awareness: The consumer can have awareness of brand with or without the desire to purchase which awareness can be based on a communications message,
- Research & familiarity: In this phase, the potential consumer had decided their needs of product or service, the consumer would start reading reviews, learning the
- Consideration: the consumer chooses the brand from shortlist by trying to test the product or ask the previous users
- Decision & purchase: the consumer makes final decision on the product, then taking the plunge, online or in a more face to face environment
- Brand / product advocate (or saboteur): Once the consumer has bought the product, they will very quickly give an opinion on the product via word of mouth
- Repurchase intention: Existing customers are significantly easier to convert than a completely new prospect, so the product will need to be replaced or
- Consumer Behavior: Theory of Planned Behavior
- Online purchasing behavior
- Conceptual Framework
Purchase intent should be triggered here for the further steps as the consumer begins to think about the brand or service. Consideration: The consumer chooses the brand from the shortlist by trying to test the product or asking the previous users. If feedback and experiences with the brand after use are positive, it is more likely that the consumer will consider repurchasing the product again.
Addressing the actions of consumers in the market and the motivation of their actions (Chand, S., 2017). The Theory of Planned Behavior (TPB) began in 1980 as a theory of reasoned behavior to predict an individual's intention to engage in consumer behavior at a particular time and place, where this theory attempted to explain general behavior. According to the conceptual framework of this study, it is explained that the key factors of Thai consumers who use online hotel booking for the process of booking hotels or resort accommodation are different.
There are ease of use, usability of the hotel reservation online, confidence in web security for the application to the reservation process and service quality (promotion and discount). Significantly, these four key variables are fundamental to identifying Thai consumers. It is because these four factors are the basic needs that the general Thai consumers considered as the basis of the criteria to use online hotel reservations.
In addition, it is critical that the attitudes of the Thai consumers will link to the purchase intention with the hotel reservation. This is because the attitudes of the Thai consumers, who used to apply the hotel reservation online, will have direct experience about the hotel reservation online. Therefore, the purchase intention of the Thai consumers will be influenced by the attitudes and it will connect with the consumer behavior.
RESEARCH METHODOLOGY
Research Design
Data Collection Methodology
- Population
- Sampling
- Questionnaire Designs
In this research we will use non-probability sampling method due to time constraint and budget. As this study will only include Thai people who would like to make hotel reservation against the online channel. The questionnaire will be distributed online through Line application and Facebook messenger, which online questionnaire allows respondents to answer all questions less bias than offline questionnaire.
The online questionnaire will be developed from the literature review and will consist of five components, namely introduction, screen questions, general questions, specific questions and demographic questions. In this part, interval scales consisting of a five-point Likert scale, from 1 to 5, will be used on a given question to measure the intensity of attitude towards each question.
Data Analysis
RESEARCH FINDING
Demographic Information
The majority of the respondents earned salary income between 10,001 baht to 30,000 baht, which is calculated as 36% of the total results, and the next similar result is 33% which is the respondents who earned income between 30,001 baht to 50,000 baht. As the results, the graph above showed that there is only 1 respondent who is under graduate, which education level is lower than Bachelor's degree and respondents who have obtained Bachelor's degree or college take most of the total respondents which is 59%, followed by Master's degree or 40% of total respondents take higher. There was only 1 respondent out of all respondents who are between 45 years old and 55 years old.
Among respondents aged 18 to 24, there are 7 persons, which is equal to 7%, and among all respondents aged 34 to 45, 10%. Therefore, the main age group for this study was respondents aged 25 to 34 years, consisting of 82 respondents or equal to 82 percent of all respondents.
General Behaviors
As Figure 4.6 showed that the website most respondents use is Agoda.com, with 51.82% of the total using this website to book the hotel. As a result of Booking.com, there are 23.64% of the total respondents who use to book their hotels, and the third ranking method that the respondents choose to book the hotel is that they book directly to the hotel, which is 10 .91% of the total number. The next rank is Expedia.com, there are 6.36% of the total respondents who use this website to book the hotel.
Factor Analysis
- Descriptive Statistic
- Regression Analysis
- Cross Tabulation
The descriptive statistics below show the mean, standard deviation, minimum, and maximum of the value and ease of use scales for online hotel reservations. Most respondents choose online hotel booking because it offers discount and promotion, and also because it offers the best price guarantee. Ease of use: The average ease of use is 3.16, which can be interpreted that most respondents agree with this factor.
Most of the respondents choose online hotel booking because it is convenient and easy to use to complete the task and complete the schedule they have planned. Factor analysis yielded 2 factors that were significant, namely value and ease of use. This means that only 10.9 percent of the variance in booking intention for online hotel reservations can be explained by value and ease of use.
The result can be used to identify the factors that influence booking intention for online hotel reservation. The table above shows coefficients from regression analysis. If the p-value of the coefficient is less than 0.05, these factors can be used to identify the factors that influence booking intention through online hotel reservations. The coefficient table shows that there is only one factor with a p-value lower than 0.05, namely ease of use; the significance value is equal to 0.002. This variable therefore has a strong influence on the dependent variable or booking intention of online hotel reservations.
The table below provides a better understanding of the customers who book hotels through hotel booking websites. The table below shows a cross-tabulation between gender and booking intention through online hotel booking. From the results of cross-tabulation, the Chi-square test showed that gender male and female have a significant effect on online hotel reservation booking intention, with a P-value less than 0.05, so it is significant.
CONCLUSIONS
Discussions and Recommendations
As the questionnaire study showed, value for money and price promotions of online hotel bookings are important, which is one of the main findings of the analysis. Online hotel booking allows customers to book more easily with time efficiency and high productivity. An online questionnaire study found that the ease of use of online hotel booking has a significant impact on Thai consumer's attitude, which is true from the key findings analysis.
As Thai people are sensitive to use online hotel booking service because of website security and as many Thai people are afraid to share some essential information, so websites should provide the system that makes them customers feel safe to share their details and information. Hotel or resort marketing owners or practitioners need to understand and help customers along the way to make a secure and easy booking towards online hotel booking. Furthermore, to provide more credibility to customers, hotel reservation service websites should attach.
Overall, the main findings and analysis of the results of this study will be useful for companies that provide online hotel booking to Thai consumers. The study of the factors that influence the behavior of consumers towards online hotel booking in Thailand is expected to be effective for the stakeholders and marketers of the hotel for the management and planning of the marketing strategy which will be suitable and consistent with the need of Thai tourists in the future. This study provides important sources of information and facts that examine the behaviors of Thai people towards online hotel booking.
The findings and analysis with the application to the online hotel booking theories are applied through the literature review and analysis. On this, the researcher expected that the owners of hotels or resorts will apply the suggestions and recommendations with the analysis of key findings to improve the websites and also include the better website security to facilitate the potential online hotel booking for all customers in the future. Moreover, the researcher expects that the customers will get higher quality service from online hotel reservation websites and hopes that this study will be beneficial for the future studies on the consumer behavior, hotel reservation services and hospitality services.
Retrieved October 12, 2017, from http://sphweb.bumc.bu.edu/otlt/MPH-Modules/SB/BehavioralChange Theories/BehavioralChangeTheories3.html.
APPENDICES
A QUESTIONNAIRE
I choose to book hotels online that offer a reasonable price and value for money. I feel safe to ensure my confidentiality. I choose an online hotel reservation that guarantees me a reservation and a response if something happens.
