Tourism in the digital age: How social and economic factors shape hotel booking decisions

This study aims to elucidate the factors that influence the choice of hotel booking mode, assess the impact of socio-demographic factors on categorization, and the influence of trip-related characteristics on preferences for booking channels. We investigate tourist preferences for hotel booking modes based on a sample of 11,861 tourists who visited the Maldives. Using a Finite Mixture Multinomial Logit Model (FMMNL), we identify two distinct classes of tourists. Our results indicate that first-time visitors from nearby markets who are interested in short stays are more inclined to book hotels through travel agencies (class 1), while first-time visitors from nearby countries who prefer to avoid luxury hotels for short stays are more likely to use the internet (class 2). Furthermore, tourists from long-haul destinations in class 1 and repeat visitors from short-haul destinations in class 2 tend to use the telephone for hotel bookings. Repeat visitors from nearby countries in class 1, and those traveling for other purposes in class 2, tend to prefer intermediaries. Our study provides a novel contribution to FMMNL model research and offers practical implications for hoteliers.