Factors influencing on online hotel reservation: With special reference to Galle District
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Date
2015
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Journal ISSN
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Publisher
Uva Wellassa University of Sri Lanka
Abstract
The increasing competitiveness in the global tourism market encourage tourism industry stakeholders
to investment further in promotion, resources, knowledge and quality maintenance in order to achieve
a satisfactory growth. As a result of that, online purchasing has gained great significance over the
past few years. Presently, online room booking has been adopted by many hoteliers and it has become
one of the leading decision making tool in the accommodation sector.
However, Sri Lankan hotels have been relatively slow in adapting to internet resources due to the
high preference of using traditional methods of room reservation by hotel patrons. According to
Internet Travel Hotel Booking Statistics (2013) internet is the ease at which one can research and
book travel plans. Further, internet travel booking revenue has grown by more than 73% over the past
five years. These figures indicate, people willingness to book online. Further, online hotel reservation
system offers a ‘win-win’ situation for both guest and the service provider. Thus, currently, many
people consider about the various advantages such as price, convenience, etc and tend to make online
room bookings. Therefore, it is important to identify the key factors for consuming via online and it
would be helpful for tourism stakeholders to design their products more attractively to cater the
upcoming demands.
This paper attempts to analyze the factors influencing on online hotel reservation. Further, it examines
the online booked guest profile and their internet usage behavior to identify the key motivation factors
to reserve online and also examines the relationship between intention to reserve online and reasons
for using online bookings. Study carried out in star class hotels in Galle district, Sri Lanka. The
findings of this research would be beneficial for the hospitality sector marketers and policy
formulators in designing and implementing technology based services.
Methodology
All local and foreign tourists’ were considered for the sample and 66 numbers of tourists’ who
reserved online rooms were selected for the study from Galle District star class hotels. The star
classified hotels were selected according to the Sri Lanka Tourism Development Authority
accommodation classification guide book. And Quota sampling Technique was used in order to
calculate the number of tourists from each hotel while convenience sampling technique was applied
to select respondents. The questionnaire which included closed ended questions and Five Likert scale
questions was distributed and Cronbach’s alpha reliability test was used to test the reliability of
questions. The same questionnaire was used as the primary data collecting tool. Books, articles and
internet were used to collect secondary sources data. The collected primary data were analyzed in a
quantitative approach using Statistical Package for Social Sciences (SPSS) 21, Microsoft Excel and
Minitab 15. Statistical techniques which were used in data analyzing were namely descriptive
analysis, exploratory factor analysis and correlation to examine the factors.
Results and Discussion
The guest profile analysis revealed 68 percent male and 31.8 percent female made online hotel
reservations. Further, 33.3 percent of the value taken by 20-29 years old age category. And that age
category represent as the mainstream who made online room bookings. Further, 25.8 percent tourists
were in 30 -39 age group, 16.7 percent tourists were in 20 -29 age group, 6.1 percent tourists were in
60 and over age group and 4.5 percent tourists were belongs to the 20 and less age category. However,
it has found that online hotel reservations are mainly done by single guests. And 48.5 percentage.37.9
percentage were represented by married people and 13.6 percentage were divorced guests. Moreover,
t60.6 percentage, the majority guests responded that they have completed up to bachelor level
education. Primary or secondary school completed people percentage was 13.6 and Diploma holders
got 21.2 percentages and only 4.5 percentages represented for master and doctoral level degree
holders. However, 80.3 percentage, the majority of the people who made online hotel reservation
were foreign tourists. And only 19.7 percentage were local tourists. 42.4 percentage mentioned they
were origin from European region and accordingly .28.8 percentage represented by Western Europe,
East Asia got 27.3 percentages and 1.5 percentage represented form North America. According to
the occupation categories there were 25.8 percentage professionals. Further, 15.2 percentage were
educationalists and retired people, scientist and technician got 1.5 percentage accordingly. Moreover,
the Businessman represemted for 13.6 percentage, and executive represented 18.2 percentage and
and 24.2 percentage represente by people who are engaging in other occupations. 75 percentages ,
majority of the tourists’ belongs to the LKR 50,000 and above income category. All the other
categories were represent as 8.1 percentage. 90.7 percentage , majority of the foreign tourists’ belong
to the US$ 800 and above income category. And only 3.7precentage of foreign tourists belong to
US$ 400 - 600 category and 5.6 percentages of foreign tourists belongs to US$601 -800 category and
none of the foreign tourists belong to US$400 income category. In addition, .30.3 percentage respond
as they are travelling with spouse. Travel with spouse and children were 22.7 percentage. And 6.1
percentage were respond as they are travelling alone and 1.5 percentage respond they travel with
business colleagues. Further, study examine the internet usage behavior of people who made online
hotel reservations. It was revealed that easy internet access at work, at home as well as with the mobile
devices as a percentage it was 54.55. Further, 19.70 percentages mentioned they have internet access
at home only. And 13.64 percentage respond they have internet access both at work and at home .
Only, 6.06 percentage indicate they have only the home and mobile access. Further, 3.03 percentage
indicate only mobile access while1.52 percent had both at work and mobile access and at work only.
It has found that, majority 90.9 percent tourists who made online hotel bookings are connected with
the internet for more than five years’ time period. And 6.1 percentages indicate they used internet for
3- 4 year and 3.0 percentages indicate internet usage is limited to 1-2 years times. Further, it has
found that, majority people are using internet more than 21 hours per week as a percentage it was 47..
And 25.8percent of people used internet 14-21 hours per week. 1Further, 8.2 percent of people used
internet 7 -14 hours per week. While 9.1 percent use the internet for less than 7 hours per week. Out
of 66 tourists 86.4 percent tourists have made online hotel bookings previously also and 13.6
percentage of tourist haven’t done previous online hotel bookings. When examine Customers’
reasons for using the internet for hotel room reservations and it has found that, mainly the below
factors influence them for reserving online. The credibility has accounted for 63.187% of variance
and it was the most influenced factor to reserve online. Quick response, and safety regulated are some
of the key factors belongs to the credibility factor. “Credibility” was the most important factors
influence on online hotel reservation which indicate 40.305% of the variance (eigenvalue is
5.240).The relationship analysis of factors influencing on-line hotel reservation and intention to make
reservation via on–line reflected convenience, price, user friendly and safety regulated and those
factors were extremely positive. On the other hand transaction reflected weak positive relationship.
Description
Keywords
Hospitality, Tourism and Events Management, Tourism Management, Tourism Industry, Hotel Industry, Hotel Management