Luxe for Less: How Do Consumers React to Luxury Hotel Price Promotions? The Moderating Role of Consumers
Wan Yang, Lu Zhang and Anna Mattila note that online discount websites are a growing channel for luxury hotels while the literature offers little guidance on whether price promotions work for them. Drawing on status consumption theory, they examine how price promotions and consumers' need for status jointly affect attitudes toward the hotel and intentions to return. Consumers high in need for status viewed the hotel less favourably, and were less likely to return, after learning it would run promotions through discount websites, while consumers low in need for status were not affected.
Wan Yang, Lu Zhang and Anna Mattila note that online discount websites are a growing channel for luxury hotels while the literature offers little guidance on whether price promotions work for them. Drawing on status consumption theory, they examine how price promotions and consumers' need for status jointly affect attitudes toward the hotel and intentions to return. Consumers high in need for status viewed the hotel less favourably, and were less likely to return, after learning it would run promotions through discount websites, while consumers low in need for status were not affected.
Written from the abstract read 2026-10-21 via Penn State Pure.
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Need for Status.' Cornell Hospitality Quarterly, 57(1), 82-92. doi:10.1177/1938965515580133