Choice behaviour in online hotel booking

The objective of this study is to analyse how people process information and make decisions with regard to booking hotel rooms via online booking systems. The authors propose a nested decision process and compare it with the approach of previous literature in analysing the determinants in choosing a hotel. This research attempts to model online hotel bookings in the real market using discrete choice modelling. The methodology is based on the estimates of nested logit models, and the results show that tourists choose a hotel by going through a number of staged decision structures, which is in line with Associative Network Theory and the Cybernetic decision-making model.