Hotel Customer Buying Behavior Analysis

This assignment presents a detailed questionnaire designed to understand customer buying behavior in the hotel industry. The survey comprises 16 questions covering various aspects such as desired hotel features (rooms, location), budget, purpose of visit, booking ease, perceived occupancy rates, and the influence of internal factors like amenities and service quality. External factors like political stability and economic conditions are also considered. By analyzing responses to this questionnaire, researchers can gain valuable insights into what motivates guests to choose specific hotels.

Running head: HOTEL AND HOSPITALITY MANAGEMENT
Hotel and hospitality management
Name of the student
Name of the university
Author note

1HOTEL AND HOSPITALITY MANAGEMENT
Acknowledgement
By this research, I have experienced best possible learning of my life. By conducting this
research, I have learnt various concepts, models and theories. I first thank to the almighty God.
After that, I want to thank to my supervisor ______________ who is my friend, philosopher and
guide. I also thank my parents for being supportive and accommodative for completing this
research. I want to thank my friends for giving me the moral support while conducting this
research.

2HOTEL AND HOSPITALITY MANAGEMENT
Executive Summary
This study had conducted a research on the factors affecting the occupancy rate of the Jackalope
hotel. The study had been able to identify the various marketing strategies required for
improving trade during the mid week of the organization. It has also identified the impact of
hotel characteristics, hotel internal factors and hotel external factors on the occupancy rate of the
hotel. The findings of the study show positive impact of all the three factors on the occupancy
rate. The study consist of three different hypotheses which have been proved using regression
analysis in Ms excel. The study had conducted mixed method for data collection analysis, which
consisted of both qualitative and quantitative data. The multiple designs was the ideal method
and it has been able to provide relevant findings. The study consists of relevant conclusion,
which has been drawn by linking with the objectives mentioned in the chapter 1 of the research.

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Table of content
Chapter 1..........................................................................................................................................7
Introduction......................................................................................................................................7
1.0 Introduction................................................................................................................................7
1.2. Aim of the Research.................................................................................................................8
1.3 Research objectives...................................................................................................................8
1.4 Research Question.....................................................................................................................8
1.5 Research hypothesis...................................................................................................................9
Chapter 2........................................................................................................................................10
Literature review............................................................................................................................10
2.0 Literature review......................................................................................................................10
2.1 Hotel characteristics.................................................................................................................10
2.2 Hotel internal factors...............................................................................................................12
2.3 Hotel external factors...............................................................................................................17
2.4 Hotel Occupancy rate..............................................................................................................20
2.5 Conceptual framework.............................................................................................................21
2.6 Literature gap...........................................................................................................................22
Chapter 3........................................................................................................................................23
Research methodology...................................................................................................................23
3.0 Research methodology.............................................................................................................23
3.1 Research Philosophy................................................................................................................24
3.2 Research Approach..................................................................................................................27
3.3 Research Design......................................................................................................................28

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3.4 Data collection.........................................................................................................................28
3.5 Data Analysis...........................................................................................................................29
3.6 Sampling..................................................................................................................................29
3.7 Reliability and Validity............................................................................................................31
3.8 Ethical consideration...............................................................................................................31
Chapter 4........................................................................................................................................33
Findings and Analysis....................................................................................................................33
4.0 Finding and Analysis...............................................................................................................33
4.1 Quantitative questions.............................................................................................................33
4.1.1 Demographics questions.......................................................................................................33
4.1.2 Quantitative Questions on occupancy rate...........................................................................39
4.1.3 Quantitative Questions on hotel characteristics....................................................................42
4.2 Qualitative Questions to Josh Ogilvie (Director of Marketing and Leisure Sales of the
Jackalope Hotels.)..........................................................................................................................67
Chapter 5........................................................................................................................................71
Conclusion.....................................................................................................................................71
5.0 Conclusion...............................................................................................................................71
5.1 Recommendation.....................................................................................................................72
References and Bibliography.........................................................................................................74
Appendix........................................................................................................................................79

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List of figures and Graphs
Figure 1: SERVQUAL MODEL AND GAPS..............................................................................14
Figure 2: Research onion Model....................................................................................................24
Figure 3: Research Philosophy......................................................................................................26
Figure 4: Research Approach........................................................................................................28
Figure 5: Research Sampling.........................................................................................................30
Graph 1: Frequency of visit...........................................................................................................34
Graph 2: Profession.......................................................................................................................36
Graph 3: Monthly Income.............................................................................................................37
Graph 4: Hotel Accommodation and Services..............................................................................38
Graph 5: Purpose of visit...............................................................................................................39
Graph 6: Availability of rooms......................................................................................................40
Graph 7: Convenience in booking.................................................................................................42
Graph 8: Hotel Location................................................................................................................43
Graph 9: Accommodation size......................................................................................................45
Graph 10: Extra Amenities............................................................................................................46
Graph 11: Service quality and Cleanliness....................................................................................47
Graph 12: Employee Behaviour....................................................................................................49
(Source: As created by author)......................................................................................................49
Graph 13: Prices............................................................................................................................50
Graph 14: Seasonality....................................................................................................................52
Graph 14: Market Competitors.....................................................................................................54
Graph 16: Political stability and Economy...................................................................................55

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List of tables
Table 1: Frequency of visit............................................................................................................34
Table 2: Profession........................................................................................................................36
Table 3: Monthly Income..............................................................................................................37
Table 4: Hotel Accommodation and Services...............................................................................38
Table 5: Purpose of visit................................................................................................................39
Table 6: Availability of rooms.......................................................................................................41
Table 7: Convenience in booking..................................................................................................42
Table 8: Hotel Location.................................................................................................................44
Table 9: Accommodation size.......................................................................................................45
Table 10: Extra Amenities.............................................................................................................46
Table 11: Service quality and Cleanliness.....................................................................................48
Table 12: Employee Behaviour.....................................................................................................49
Table 13: Prices.............................................................................................................................51
Table 14: Seasonality.....................................................................................................................52
Table 14: Market Competitors......................................................................................................54
Table 16: Political stability and Economy....................................................................................55

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Topic: Increasing occupancy rates in rural luxury properties during mid-week rate- “A case
study of Jackalope hotel Mornington Peninsula”
Chapter 1
Introduction
1.0 Introduction
This study will identify issues and develop strategies for increasing occupancy rates in
rural luxury hotels. This study will consider Jackalope hotel Mornington Peninsula to identify the
effective strategies that can be implemented for improving the trade volumes during midweek.
1.1. Background of the study
Jackalope hotel Mornington Peninsula is a luxury hotel having 46 rooms and is located
on a working winery. The hotel provides full service to its customers with room service and
front desk service for 24 hours. The facilities in the hotel includes the free WiFi, pools and spa
that are solar heated, welcome drinks, complimentary mini bar, two on site restaurants and room
service twice a day. Recently, the hotel is facing issued due to the less occupancy rates during
the mid weeks. Occupancy rate of the hotel during the weekend is 90% where as during the mid
week it falls under 50% (Gourmet Traveller 2018). Therefore, the daily takings are affected due
to the decrease in the number of consumers but the operating costs are remaining same
regardless of the decrease in customers. The location of the hotel is an issue as it attracts only the
premium consumers in the market. The hotel may have to curtail costs within their cost structure,

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which may lead to increase in turnover rate of the organization. In this study, these problems will
be addressed to identify suitable strategies for mitigating these issues.
1.2. Aim of the Research
This research is aimed at identifying the different factors that are responsible for affecting
the occupancy rate of Jackalope hotel Mornington Peninsula. The identified factors will be
evaluated to investigate the nature of impact of each of the factors on the occupancy rate during
midweek trade. This research will conclude by providing valid recommendations regarding
different strategies that should be implemented for improving the occupancy rate during
midweek.
1.3 Research objectives
 To identify the factors affecting the occupancy rate of Jackalope hotel Mornington
Peninsula
 To investigate the impact of these factors on the occupancy rate of Jackalope hotel
Mornington Peninsula
 To recommend suitable strategies for improving the occupancy rate of Jackalope hotel
Mornington Peninsula during mid week trade
1.4 Research Question
 What are the factors affecting the occupancy rate of Jackalope hotel Mornington
Peninsula?
 What is the impact of these factors on the occupancy rate of Jackalope hotel Mornington
Peninsula?

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1.5 Research hypothesis
H01- Hotel characteristics do not have an impact on the occupancy rate of Jackalope hotel
Mornington Peninsula
H11- Hotel characteristics have an impact on the occupancy rate of Jackalope hotel Mornington
Peninsula
H02- Hotel internal factors do not have an impact on the occupancy rate of Jackalope hotel
Mornington Peninsula
H12- Hotel internal factors have an impact on the occupancy rate of Jackalope hotel Mornington
Peninsula
H03- Hotel external factors do not have an impact on the occupancy rate of Jackalope hotel
Mornington Peninsula
H13- Hotel external factors have an impact on the occupancy rate of Jackalope hotel Mornington
Peninsula

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Chapter 2
Literature review
2.0 Literature review
As stated by Viglia, Minazzi, and Buhalis (2016), occupancy rate is the most crucial
aspect of a hotel as decrease in occupancy rates increases the depletion rate of hotel resources.
The external and internal factors are very important for growth, performance and success. The
external factors will include the market competitors, economic changes, political situation and
seasonality. The internal environment will consist of factors such as service quality, employee
attitudes, room facilities, prices and cleanliness. The characteristics of the hotel are also an
important factor, as it will consist of factor such as location of the hotel and the number of beds
in the hotel.
2.1 Hotel characteristics
According to Radojevic, Stanisic and Stanic (2015), the characteristics of the hotel will
determine the attractiveness of hotel. The consumers will be initially be attracted due to the
location of the hotel, number of rooms and extra amenities they are providing to the consumers.
Location
There are certain consumers that give importance to the location of the hotel and they are
willing to pay more for a suitable location. The surrounding environment of the hotel will
determine what type of consumers they will attract. Business consumers will occupy a hotel that
is located near a corporate centre and the hotel can collaborate with the centre to attract those

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consumers in the market Zervas, Proserpio and Byers, (2017). Thus, the hotels can adapt to the
events by formulating suitable strategy. Thus, identifying the possible customer could provide
competitive advantage, as they can understand what the location of the hotel can offer to the
consumers. According to Phillips et al. (2017), the location of the hotel will determine the
potential expansion they can obtain in the near future. The target groups of the hotels are
determined by the location and a good location may provide support to the sustainability. There
are generally two types of hotel settings, one is the centre hotels and other is the rural setting
hotels. However, both have their own set of positives and negatives. As stated by (), the hotels in
the city centre cater to a saturated market so the analysis of the market competitors are essential
in gaining competitive advantage in the market. Moreover, they should have sound knowledge
about the surround hospitality industry so that suitable strategies can be formulated. The
location issue is less significant for the hotels located in rural setting, as there is less competition.
Number of rooms and occupancy
The hotel occupancy capability is another important factor for understanding the growth
and performance of the hotels in the industry. The total number of rooms and the number of
rooms occupied in the hotel will determine the occupancy rate. The occupancy rate of a hotel
signifies the profit margin, revenue streams and cost structure of the hotel. The occupancy rate of
hotels fluctuates depending upon the seasonality. The occupancy rate identifies the behaviour of
the population during the weekdays and week offs (Ling et al. 2015). Generally, hotels
experience less occupancy rates during the weekdays and there are certain seasons when the
business prospects are quite low for the hotel. Therefore, it is essential to compare the different
hotels in the same region to understand the competitiveness of the environment. Thus, by
understanding the trends in the market, any firm can implement strategies for improving their

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occupancy rate. These strategies may include factors such as promotions and packages, targeting,
segmentation and positioning.
2.2 Hotel internal factors
The internal factors that will be considered in this literature review are service quality,
room facilities, prices, employee attitudes and cleanliness. As stated by Molina-Azorín et al.
(2015), service quality, employee attitudes, room facilities, prices and cleanliness are the
different attributes for retaining visitors in the hotel.
Service Quality
As stated by Stefano et al. (2015), it is difficult to provide an exact definition of service
quality as it is intangible in nature. However, service quality is an integral part of the hotel
industry and sustainability of the hotel is dependent on it. It is essential to understand the
requirement of quality as many people misinterpret quality as durability and luxury. On the
other hand, Nieves and Segarra-Ciprés (2015) describes service quality as meeting the
expectation of the client and going beyond it. In order to obtain competitive advantage in the
market, the hotels have to add value to the products they are offering and service quality is one
of ways of adding value to the consumer offerings. Hotel industry use different form of Service
Quality measurement techniques, which is used for monitoring the service quality of the hotels.
SERVQUAL Model is one of the most popular model for measuring the quality of service in the
industry. This model identifies the service quality gap keeping client evaluation as the parameter
for evaluation. This model identifies seven gaps in service quality. The gaps are as follows:

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Gap1: This measures the gap between management perception and customer expectation of
service quality. Excessive management layers and wrong market research orientation are the
major reasons for this type of gap.
Gap2: This measures the gap between service specification and management perception. The
gap arises when the standards are not maintained within the organization, which results in the
lack of commitment among the employees and the management.
Gap3: This measures the gap between service delivery and service specification. This gap arises
due to lack of clarity in job role and key responsibility areas of the employees.
Gap4: This measures the gap between external communication and service deliveries. This gap
arises due to over promise to consumers along with low horizontal communication.
Gap5: This measures the gap between the perception of service delivered and consumer
expectation. This gap arises when the organization is unable to address the needs and
expectations of the consumers. This is the true measure of quality of service as there is direct
relationship with the external customers.
Gap 6: This measures the gap between employee perception and customer expectation. This
arises due to wrong perception of the employees of the customer expectations.
Gap 7: This measures the gap between management perception and employee perception. This
arises due to communication gap between the management and the employees.

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Figure 1: SERVQUAL MODEL AND GAPS
(Source: Stefano et al. 2015),
Room and Hotel facilities
As stated by Martinez et al. (2017), the majority of the customers are attracted by the
extra facilities the organization is able to provide. This will act as a unique selling proposition for
the hotel, which may include factors such as free Wi-Fi facility, complementary dinners,

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swimming pools, recreation centres and discounts for regular clients. However, promotion of
these value propositions is important, as the customers need to be made aware of the facilities the
organization is providing to the consumers. However, the marketing and promotion strategy will
include identification of the target customers and identifying suitable strategies. The customers
should be provided the amenities they need so market survey is required to analyze the
behavioural pattern of the consumers.
Prices
As stated by Viglia, Mauri and Carricano (2016), effective pricing strategy is essential for
gaining success in the hotel industry. A hotel has to consider many factors before deciding upon
the prices. However, the simplest rule followed by most of the hotels is following competitive
pricing or increasing the prices when there is shortage of inventory. Therefore, pricing strategy
will be different as they operate in different environment having different target consumers. The
basic factors that have to be considered are booking patterns, available inventory, consumer
needs and competitive response. These are the internal pricing factors; evaluation of the booking
pattern will show the type of consumers, the hotel is drawing. The inventory is a major concern
in the hotel industry so available inventory and demand. When there is availability of resources
is high, the rates are low and vice versa.
This is a simple case of yield management where the prices are increased due to less
availability of resources but as the hotels do not operate in vacuum, other relevant factors such as
market competition, the location, facilities are essential elements of determining the prices. It is
viable to adjust prices based on the market situation and the prices set by the competitors in the
market. As the hotel makes changes to their pricing strategy based on their competitor pricing,
similarly, the competitors are expected to respond in similar way if they want to maintain their

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competitive advantage in the market (Ali, Amin and Cobanoglu 2016). However, without
considering the consumers it is impossible to formulate an effective strategy. It is essential to
evaluate the elasticity and sensitivity of the consumers towards change in pricing which is
generally done using sophisticated tools in now days.
Employee Attitude
According to Chan et al. (2017), employee attitude and behaviour is essential for
retaining the existing consumers in the market. In hotel industry, the employees directly interact
with the customers at all time so the behaviour of the employees plays an important role in
providing the consumers with high quality experience. Employee attitude is highly linked with
customer satisfaction and different literatures have provided instances of effective employee
attitude required for improving the overall experience for the consumers. Researches show that
familiarity, responsiveness, politeness, friendliness, caring, trustworthiness, understanding and
helpfulness are elements proved effective in providing the consumers with better satisfaction and
develop a long-term relationship with the customers (Kim, Im and Hwang 2015). The outcome
of various studies clearly shows that friendly behaviour is important for improving consumer
experience and the service industry has become more oriented towards the customers so
understanding customer needs and providing them with personalised service is crucial for
organizational success.
Cleanliness
As opined by Nicholas and Lee (2017), maintaining high standards of sanitation in the
hotel industry is essential. The hotels require commercial cleaning expertise in each aspect for
keeping their hotel in top condition at all times. Cleanliness is the basic requirement of a hotel

17HOTEL AND HOSPITALITY MANAGEMENT
and companies can gain consumer loyalty. As stated by Zemke et al. (2015), consumers expect
clean environment in a hotel and this is an important factor for quality. Different hotels focus on
providing different experiences to the consumers, which leads to varied activities. Therefore,
tailored cleaning processes are required for hotels where there are more things to offer to the
consumers such as smoking zones, gym equipments and allowing pets will require extensive
cleaning standards at all time.
2.3 Hotel external factors
The external environment of any hotel cannot be controlled and the organization will
have to adapt to the changing environment. The external factors will affect the overall industry
and consist of factors such as seasonality, competitors, economy, political environment, social
environment, legal environment, ecological environment and technological environment.
However, two factors that will be discussed in this part of the study are seasonality and
surrounding competitors.
Seasonality
Seasonality is a factor, which a organization is affected by the most, and occupancy rate
of a hotel is profoundly affected by seasonality. The fluctuation in occupancy rate of the hotel
happens mainly due to seasonality. During the festival periods, the expected occupancy rate is
high and during the off-season, the occupancy rate is low. Thus, the consumer behaviour changes
with seasonality and the consume demand varies due to this factor. The management of the hotel
has to understand the seasonality of the surrounding environment by incorporating infrastructure
necessary for sustainability (Duro 2016). However, marketing plays an important role in this
context whereas the organization can use marketing orientation to make consumers aware of the

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special deals and facilities provided by the hotels. Therefore, using marketing the hotels are able
to influence the demand of the products. However, the effectiveness of the loyalty programs are
more during the peak seasons. Generally, hotels face issues with occupancy rate during mid
weeks depending upon the type of consumers they are targeting. However, the amounts of
resources spent during the mid week are equal to the weekend expenditure. Marketing strategies
will play valuable role as it will enable to identify the target segment and develop strategies
based on it.
Surrounding competitors
The hotel industry is divided depending upon the type of consumer they deal and the
possibility of having overlapping sets of consumers is less. However, the hotels catering to the
same market segment will face tough competition as they share the same market segment.
During the midweek, the numbers of consumers are less and if the surrounding hotels are serving
to the same consumer segment, the competitors will take some consumers away. The market
volatility in the hotel industry is high due to availability of resources. However, demand is
consistent and managers will be able to predict the changes in demand. There is duality in the
hotel industry where in some markets small number of hotels dominates the market and there are
markets where the larger firms will dominate on the global context. Globalization has changed
the strategy formulation of the organizations from a being a product orientation to market
orientation (Aznar et al. 2016). The organizations are focusing on retaining their existing
customers than on gaining new customers. The costs of acquiring new customers are high so it is
better to focus on existing customers. Customer experience management is a tool used by the
organizations for providing the consumers with memorable experience and excellent service. The
overall experiences of the consumers determine the repeat purchase of the products. The needs

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and wants of the consumers are changing rapidly and their requirements have become more
specific. This suggests that customization of services have been key factor in developing
competitive advantage. Competitor analysis is essential to identify the strength and weakness of
the consumers so that possible threats to the organizations sustainability can be identified. The
above factors mentioned in the literature review are important for gaining competitive advantage
of the organization.
Political Situation
The political situation of the surrounding environment will have a direct impact on the
hotel industry. The stability of the government in the country in which the organization operates
will determine the rules and regulations regarding the business operations. The government will
determine the taxation laws, environmental regulations, safety laws and hygiene laws (Jones
Hillier and Comfort 2016). There are countries where the laws are strict that maintaining high
standard is necessary in the industry, which will increase the barriers to entry and operation in
the country. Political instability may lead to corruption and unlawful activities, which will
directly affect the consumer base and working environment.
Economic Status
The economy of the operating environment will have influence the operations and
business of the hotels. The stability of the economy will determine whether the disposable
income of the population. The hotels will have to develop their market segmentation based on
the economic aspects (Bowie et al. 2016). The market competition is extremely high in stable
economies where it is tough to sustain in unstable economies. The employee wages and labour
prices are also highly affected by the economic condition of the country. Therefore, before
entering into a foreign market, the organizations analyze the macro and microenvironment to

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assess the feasibility of their strategy. However, the hotels do not have any control over these
factors and they can merely adapt to the changes and take precautions to mitigate the risk factors.
2.4 Hotel Occupancy rate
According to Hung, Shang and Wang (2015), maintaining the sustainability of the hotel
industry is totally dependent on their occupancy rate. The occupancy rate determines the lost
opportunities of gathering consumers and generating revenue. Hotels tend to function in normal
way in the lean seasons in order to cover up the expenses and fixed costs associated with it.
Therefore, the market scenario can be determined by a hotel’s occupancy rate and decrease in
occupancy during peak seasons indicates internal organizational problems.
Room occupancy rate
There relationship between total numbers of rooms available and the number of rooms
occupied is known as the room occupancy rate. The room occupancy rate is represented by the
equation, Rr = Or + Tr (Viglia, Minazzi and Buhalis 2016). In this equation, Or = occupied rooms,
Tr = Total number of rooms and Rr = room occupancy rate.
Bed occupancy rate
Similarly, the relationship between the hotel capacity and number of beds occupied is
known as Bed Occupancy rate (Fung et al. 2016). The bed occupancy rate can be explained using
a particular equation and it is as follows:
RB = OB + TB
OB= Number of beds occupied
TB= Total number of beds

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RB= Bed occupancy rate
2.5 Conceptual framework
Occupancy rate
Hotel
Characteristics
Hotel Internal
factors
Hotel External
factors
Seasonality
Prices
Location
Number of
Rooms
Employee
attitudes
Surrounding
competitors
Room and
Hotel Facilities
Room
Occupancy
rate
Bed
Occupancy rate
Cleanliness
Political
situation
Economic
Status
Service
Quality

22HOTEL AND HOSPITALITY MANAGEMENT
2.6 Literature gap
The above literatures were unable to provide specific details about the hotels in the rural
setting. The factors affecting the hotels in the rural setting may vary, even though occupancy rate
is an issue faced by all the hotels no significant solution has been mentioned in the journals and
articles. The articles and journals referred in this literature have conducted single design analysis
for establishing the facts however; this current study will be using multiple designs to provide a
different dimension to the study. The conceptual framework in the previous part shows that
impact of different factors of the independent variable on the dependent variable. The literatures
in the study have been unable to link the different factors affecting the occupancy rate of the
hotels.

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Chapter 3
Research methodology
3.0 Research methodology
Research methodology is the systematic way of identifying the hidden facts within the
research. Research methodology will describe all the research methods used in the study and the
valid justifications for using the methods. Every methodology has fixed assumption that cannot
be altered in the study as the overall findings and analysis of the research is dependent on it.
Nature, classification, purpose and design are the factors which will determine the methods
used (Best and Kahn 2016). This study will use applied research as it is dealing with a specific
problem in a specific organization. The managers in the organization to make improvements to
their existing problems can use the finding of the study. This is based on the nature of the study
but if consider the other factors the study will be analytical where mixed method will be used
for data collection and data analysis.

24HOTEL AND HOSPITALITY MANAGEMENT
Figure 2: Research onion Model
(Source: Best and Kahn 2016)
3.1 Research Philosophy
The different method of collecting and analysis will be identified using research
philosophy. Research philosophy will make the researchers aware of the assumptions taken in
the study. Every research has some practical implication and research philosophy will be
selected based on the practical implications. Positivism, intepretivism, realism, and pragmatism
are the different philosophies used in research (Bryman and Bell 2015). Realism considers
scientific approaches and human mind is excluded from the reality. However, personal human
experience are taken into account in some instances which is known as direct realism whereas
the rejection of personal experiences in done in critical realism. In positivism philosophy,

25HOTEL AND HOSPITALITY MANAGEMENT
observations are used to gain accurate knowledge. This philosophy is limited to data
interpretation and data analysis, which leads to quantifiable data. Thus, statistical analysis of data
is an important component of positivism philosophy (LoBiondo-Wood and Haber 2014). The
inclusion of human element is done in interpretivism philosophy where social construction is
used for accessing reality. The approach to the study is subjectivism where secondary analysis
of data is executed by collecting data from blogs, articles and peer-reviewed journals (Flick
2015). Pragmatism accepts all dogmas, which are supported by relevant actions in the study.
Positivism and Interpretvism are mutually limited approaches used in business researches.
However, there are instances where a different approach is required for research, as pragmatism
believes in the existence of multiple realities as every situation has different forms of
interpretation. Pragmatism will assist in shifting the assumptions to a different position on the
range. In this study, as mixed method is used, pragmatism is the research philosophy selected for
the study.

26HOTEL AND HOSPITALITY MANAGEMENT
Figure 3: Research Philosophy
(Source: Flick 2015)
Justification for selecting pragmatism
The study will be using mixed method, which means that it will consist of multiple
designs. Therefore, pragmatism is the most suitable approach of research, as it will enable to
conduct both quantitative and qualitative analysis of data. The study consists of hypothesis
testing and the quantitative analysis will enable to test the hypothesis. Pragmatism will also
facilitate in conducting qualitative analysis of data, which will provide a different dimension to
the study.

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3.2 Research Approach
The different approaches for research methods are inductive, deductive and abductive
approach (Kumar 2014). Inductive approach and deductive approach are distinguished based on
the importance of hypothesis in the study. Deductive approach will develop the hypothesis based
on the information that has been collected in the study. The existing theories in the study will be
taken into account to form the hypothesis. Deductive will facilitate in conductive quantitative
analysis of data where the concepts will be quantified. In inductive approach, new theories are
developed and formulated which will be validated by using the different observations. However,
as there is less availability of data, the risk of not attaining new theory is high. Abductive
approach provides shocking facts and the remaining study focuses on identifying and explaining
the reasons. In this study, deductive approach will be used for qualitative and quantitative
analysis of data.

28HOTEL AND HOSPITALITY MANAGEMENT
Figure 4: Research Approach
(Source: Kumar 2014)
Justification for selecting the deductive approach
As this is a conclusive study, the existing theories defined in the study will be validated
using the deductive approach. Therefore, the hypothesis formed in the study will be proved using
the deductive approach. The deductive approach identifies all the premises and conclusions in
the study and assumes that if the conclusion holds true then all it is premises are accurate.
Moreover, the time span for conducting the study is less and relevant conclusion can be drawn
from the study.
3.3 Research Design
Research can be of three types exploratory, conclusive and explanatory. This depends on
the type of methods used (Creswell and Poth 2017). In this current study, sequential explanatory
is the method used for conducting the data analysis. The study will collect and analyze
quantitative data at the initial stage. The qualitative data will be conducted for explaining and
inferring the data findings in quantitative analysis.
3.4 Data collection
Data collection will consist of primary data collection where both quantitative and
qualitative analysis will be executed (Orkin 2014). The study consists of multiple designs where
data has been collected through surveys and questionnaires. In quantitative analysis, data will be
collected through close-ended questionnaires, which will be asked to the customers that visit the
hotels as they have less knowledge about the research topic. The data collected through

29HOTEL AND HOSPITALITY MANAGEMENT
quantitative survey will be analyzed statistically. The qualitative analysis will consist of open-
ended questionnaire asked to the managers in the organization. The data collected through
qualitative analysis will be analyzed by identifying the patterns within the answers.
3.5 Data Analysis
Qualitative analysis will identify the patterns within the answers provided by the
managers in the organization. Quantitative analysis will consist of descriptive statistics where
frequency of data will be calculated and represented in graphs and charts (Panneerselvam 2014).
Regression analysis will be conducted for identifying the degree and nature of relationship
between both the variables. Ms excel is the tool used for analyzing the quantitative data.
3.6 Sampling
Sampling is used to reduce the sample size for complexity reduction. There are two types
of sampling methods, one is probabilistic sampling method and the other is the non-
probabilistic sampling method. The different methods of probabilistic sampling are simple
random sampling, systematic sampling, stratified sampling and cluster sampling. Simple
random sampling randomly selects sample from the overall population. In systematic sampling, a
particular interval is set and random samples are selected at regular intervals. In cluster sampling,
all the other sampling methods are used to randomly select population sample. Stratified
sampling divides the population sample into groups that do not overlap and unique sample from
each of the group is selected. The different methods of non-probabilistic sampling are extensive
sampling, convenience sampling, judgement sampling, quota sampling and snowball
sampling. Non-probabilistic sampling is used when the sample size and the population is known.
It is also used in scenarios where the population sample is hidden and it is tough to identify

30HOTEL AND HOSPITALITY MANAGEMENT
population sample for the analysis. In this study, probabilistic sampling will be used as data
sampling is large. Randomization is the method used for selecting population sample from the
overall population (Silverman 2016). Sample random sampling is the method for reducing the
sample size. In this study, initially data from 200 respondents were collected in quantitative
analysis but 100 respondents have selected to represent the overall population. In qualitative
analysis, data set consist of a single respondent.
Figure 5: Research Sampling
(Source: Silverman 2016)

31HOTEL AND HOSPITALITY MANAGEMENT
3.7 Reliability and Validity
Reliability is the ability of the study to reproduce similar results by using different data
sets in similar research context. It is essential to keep reliability of the study high for achieving
the desired result. The different types of reliability study are parallel form reliability, test rated
reliability, internal consistency reliability and inter-rated reliability. Initially pilots study was
conducted where sample questionnaires were sent out to check the reliability of the
questionnaire. In this study, Test rated reliability is used for generating high reliability where the
data sample are collected multiple times to evaluate whether similar result are obtained or not.
Validity measures the correctness of the different methods and frameworks used for conducting
the study. The different methods of testing validity of the data are content validity, face validity,
external validity, internal validity, construct validity, criterion validity and concurrent validity.
Similarly, construct validity is the method used for measuring the validity of the tools in the
study (Einstein 2014).
3.8 Ethical consideration
In this present study, the anonymity of the respondents have been maintained and data in
this study has not been used in any other articles and journals (Treiman 2014). While conducting
the study it is essential to protect the privacy of the respondents so all the personal information
has been with held. The respondents have been made aware of the objective of the study so that
the purpose of the research is clear to them. The respondents have been forced to take part in the
study and everyone has participated of their own free will. The data collected is authentic and
has not been manipulated to form desirable result. The research has maintained transparency and
misleading of information has been avoided. The study has adhered to the data protection

32HOTEL AND HOSPITALITY MANAGEMENT
act(1998) and has avoided plagiarized content. Therefore, the literature taken from different,
articles, peer reviewed journals and web articles have been properly cited. The questionnaire has
not used in form of offensive and discriminatory language which may be unacceptable to the
response group. Highest level of objectivity has been maintained throughout, especially in
analysis and discussion part of the study.

33HOTEL AND HOSPITALITY MANAGEMENT
Chapter 4
Findings and Analysis
4.0 Finding and Analysis
4.1 Quantitative questions
4.1.1 Demographics questions
1. How often do you visit hotels in a year?
Row labels No of response Percentage of
response
Total respondents
Once a year 24 24% 100
Twice a year 30 30% 100
Thrice a year 20 20% 100
More than 4 times 26 26% 100
Table 1: Frequency of visit
(Source: As created by author)

34HOTEL AND HOSPITALITY MANAGEMENT
Once a year Twice a year Thrice a year More than 4 times
24%
30%
22%
24%
Frequency rate of visit
Graph 1: Frequency of visit
(Source: As created by author)
Findings
This question is addressing the frequency of visit of the consumers in the hotel. The result
suggests that the respondents are almost equally distributed. The majority of the consumers visit
the hotel as least twice a year.

35HOTEL AND HOSPITALITY MANAGEMENT
2. What is your profession?
Row labels No of response Percentage of
response
Total respondents
Businessman 30 30% 100
Doctor 40 40% 100
Corporate employees 14 14% 100
Others 16 16% 100
Table 2: Profession
(Source: As created by author)
Businessman Doctor Corporate employees Others
30%
40%
14% 16%
Profession

36HOTEL AND HOSPITALITY MANAGEMENT
Graph 2: Profession
(Source: As created by author)
3. What is your monthly income?
Row labels No of response Percentage of
response
Total respondents
Less than 10,000 22 22% 50
Between 10,000-20,000 20 20% 50
Between 21,000-50,000 34 34% 50
More than 50,000 24 24% 50
Table 3: Monthly Income
(Source: As created by author)

37HOTEL AND HOSPITALITY MANAGEMENT
Less than 10,000 Between 10,000-
20,000 Between 21,000-
50,000 More than 50,000
22%
20%
34%
24%
Monthly Income
Graph 3: Monthly Income
(Source: As created by author)
4. How much do you want to spend on hotel accommodation and services?
Row labels No of response Percentage of
response
Total respondents
Less than 1000 32 32% 100
Between 1000-2000 20 20% 100
Between 2000-5000 24 24% 100
Above 5000 24 24% 100
Table 4: Hotel Accommodation and Services
(Source: As created by author)

38HOTEL AND HOSPITALITY MANAGEMENT
Less than 1000 Between 1000-2000 Between 2000-5000 Above 5000
32%
20%
24% 24%
Hotel Accomodation and Services
Graph 4: Hotel Accommodation and Services
(Source: As created by author)
5. What is your purpose for visiting the hotel?
Row labels No of response Percentage of
response
Total respondents
Business 34 34% 100
Leisure 66 66% 100
Table 5: Purpose of visit
(Source: As created by author)

39HOTEL AND HOSPITALITY MANAGEMENT
34%
66%
Purpose of visit
Graph 5: Purpose of visit
(Source: As created by author)
4.1.2 Quantitative Questions on occupancy rate
6. How far do you agree that there are plenty of rooms available during midweek?
Row labels No of response Percentage of
response
Total respondents
Strongly Agree 44 44% 100
Agree 42 42% 100
Indifferent 2 2% 100
Disagree 8 8% 100
Strongly disagree 4 4% 100

40HOTEL AND HOSPITALITY MANAGEMENT
Table 6: Availability of rooms
(Source: As created by author)
Strongly Agree
Agree
Indifferent
Disagree
Strongly disagree
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5
Availability of rooms
Graph 6: Availability of rooms
(Source: As created by author)
Findings
The results of the data collected shows that 44% of the respondents strongly agree to the
research question, 42% of the respondents have agreed to the fact and 2% are indifferent towards
the task. On the contrary, 12 % are in disagreement. However, majority of the consumers agree
that during midweek the availability of rooms are high.

41HOTEL AND HOSPITALITY MANAGEMENT
7. How far do you agree that hotel booking is easier during midweek?
Row labels No of response Percentage of
response
Total respondents
Strongly Agree 46 46% 100
Agree 40 40% 100
Indifferent 2 2% 100
Disagree 6 6% 100
Strongly disagree 6 6% 100
Table 7: Convenience in booking
(Source: As created by author)
46%
40%
2%
6%
6%
Convenience in booking
Strongly Agree Agree Indifferent Disagree Strongly disagree

42HOTEL AND HOSPITALITY MANAGEMENT
Graph 7: Convenience in booking
(Source: As created by author)
Findings
The study findings show that 86% of the respondent agrees to the question whereas 12 %
disagree to the majority of the respondent. The majority suggest that it is convenient in booking
room during mid-week than on weekends. However, it will be validated using regression
analysis later on in the study.
4.1.3 Quantitative Questions on hotel characteristics
8. How far do you agree that location of the hotel is influences your buying behaviour?
Row labels No of response Percentage of
response
Total respondents
Strongly Agree 36 36% 100
Agree 50 50% 100
Indifferent 2 2% 100
Disagree 6 6% 100
Strongly disagree 6 6% 100
Table 8: Hotel Location
(Source: As created by author)

43HOTEL AND HOSPITALITY MANAGEMENT
36%
50%
2%
6%
6%
Hotel Location
Graph 8: Hotel Location
(Source: As created by author)
Findings
The results show that majority of the consumers feel that location of the hotel is an
important factor for attracting the consumers. The study suggests that 86% of the respondents
think consumer take the location of the hotel into account where as 12% disagree to the question.
This shows that location of the hotel is impacting their choice of hotel.
9. How far do you agree that number of rooms in a hotel influences your buying behaviour?

44HOTEL AND HOSPITALITY MANAGEMENT
Row labels No of response Percentage of
response
Total respondents
Strongly Agree 52 52 100
Agree 34 34 100
Indifferent 2 2 100
Disagree 8 8 100
Strongly disagree 4 4 100
Table 9: Accommodation size
(Source: As created by author)
Strongly Agree
Agree
Indifferent
Disagree
Strongly disagree
52%
34%
2%
8%
4%
Accommodation size
Graph 9: Accommodation size
(Source: As created by author)

45HOTEL AND HOSPITALITY MANAGEMENT
Findings
The findings show that 52% strongly agree and 34% agree to the question that number of
rooms in a hotel influences their buying behaviour. On the contrary, 12% are disagreeing to the
question. The majority of the respondents chooses their hotel based on the number of rooms in a
hotel.
4.1.4 Quantitative Questions on occupancy rate on internal factors
10. How far do you agree that extra amenities provided by the hotel influences your buying
behaviour?
Row labels No of response Percentage of
response
Total respondents
Strongly Agree 44 44% 100
Agree 42 42% 100
Indifferent 2 2% 100
Disagree 8 8% 100
Strongly disagree 4 4% 100
Table 10: Extra Amenities
(Source: As created by author)

46HOTEL AND HOSPITALITY MANAGEMENT
Strongly
Agree
Agree
Indifferen
t
Disagree
Strongly disagree
Extra Amenities
Graph 10: Extra Amenities
(Source: As created by author)
Findings
The findings of the study show that 44% are in strong agreement and 42% have agreed to
the research question. On the other hand, 12% of the respondents are in disagreement with the
research question. Thus, the majority of the consumers are attracted by the extra amenities that
are being provide by the hotels.

47HOTEL AND HOSPITALITY MANAGEMENT
11. How far do you agree that service quality and cleanliness is one of the main criteria of
choosing a hotel?
Row labels No of response Percentage of
response
Total respondents
Strongly Agree 56 56% 100
Agree 30 30% 100
Indifferent 2 2% 100
Disagree 6 6% 100
Strongly disagree 6 6% 100
Table 11: Service quality and Cleanliness
(Source: As created by author)
Strongly Agree
Agree
Indifferent
Disagree
Strongly disagree
0 0.1 0.2 0.3 0.4 0.5 0.6
56%
30%
2%
6%
6%
Service quality and Cleanliness
Graph 11: Service quality and Cleanliness
(Source: As created by author)

48HOTEL AND HOSPITALITY MANAGEMENT
Findings
The results in the study show that 56% of the respondent strongly agrees service quality
and cleanliness is major criteria for selecting a hotel. Moreover, they have been supported by
30% of the respondents. On the contrary, 12% are in disagreement with the research question.
This shows that majority of the respondents consider service quality and cleanliness as a key
factor in selecting a suitable hotel.
12. How far do you agree that friendly employee behaviour influences your choice of hotel?
Row labels No of response Percentage of
response
Total respondents
Strongly Agree 38 38% 100
Agree 48 48% 100
Indifferent 2 2% 100
Disagree 8 8% 100
Strongly disagree 4 4% 100
Table 12: Employee Behaviour
(Source: As created by author)

49HOTEL AND HOSPITALITY MANAGEMENT
Strongly Agree
Agree
Indifferent
Disagree
Strongly disagree
0 0.1 0.2 0.3 0.4 0.5 0.6
Em ployee Behaviour
Graph 12: Employee Behaviour
(Source: As created by author)
Findings
The results in the study show that 38% of the respondent strongly agrees employee
behaviour is major criteria affecting the consumer perception. Moreover, they have been
supported by 48% of the respondents. On the contrary, 12% are in disagreement with the
research question. This shows that majority of the respondents expects appropriate behaviour
from the employees which a crucial factor for retaining the customers.

50HOTEL AND HOSPITALITY MANAGEMENT
13. How far do you agree that prices of the hotel rooms affect your choice of hotel?
Row labels No of response Percentage of
response
Total respondents
Strongly Agree 41 41% 100
Agree 45 45% 100
Indifferent 2 2% 100
Disagree 5 5% 100
Strongly disagree 7 7% 100
Table 13: Prices
(Source: As created by author)
Strongly Agree
Agree
Indifferent
Disagree
Strongly disagree
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5
41%
45%
2%
5%
7%
Prices
Graph 13: Prices
(Source: As created by author)
Findings

51HOTEL AND HOSPITALITY MANAGEMENT
The results in the study show that 41% of the respondent strongly agrees that price of the
rooms is one of the significant determinant of choosing a hotel. Moreover, they have been
supported by 45% of the respondents. On the contrary, 12% are in disagreement with the
research question. This shows that majority of the respondents will evaluate the prices and offers
form different hotels before making the purchase decision.
4.1.5 Quantitative Questions on external factors
14. How far do you agree that it is difficult to book rooms during the peak seasons?
Row labels No of response Percentage of
response
Total respondents
Strongly Agree 58 58% 100
Agree 30 30% 100
Indifferent 2 2% 100
Disagree 8 8% 100
Strongly disagree 2 2% 100
Table 14: Seasonality
(Source: As created by author)

52HOTEL AND HOSPITALITY MANAGEMENT
Strongly Agree Agree Indifferent Disagree Strongly disagree
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Seasonality
Graph 14: Seasonality
(Source: As created by author)
Findings
The study findings show that 58% are in strong agreement with the research question and
they have been supported by 30% of the respondents. On the other hand, 10% of the respondents
are not in agreement with the research question. Therefore, it can be seen that during peak
seasons the business is high which is the main reason that consumers are unable to book rooms
easily. This will be different in case of the off seasons as then plenty of rooms are available.

53HOTEL AND HOSPITALITY MANAGEMENT
15. How far do you agree that you check variety of similar hotels before making the purchase
decisions?
Row labels No of response Percentage of
response
Total respondents
Strongly Agree 32 32% 100
Agree 56 56% 100
Indifferent 2 2% 100
Disagree 2 2% 100
Strongly disagree 8 8% 100
Table 14: Market Competitors
(Source: As created by author)
42%
44%
6%
8%
Market Competitors
Strongly Agree Agree Indifferent Disagree Strongly disagree

54HOTEL AND HOSPITALITY MANAGEMENT
Graph 14: Market Competitors
(Source: As created by author)
Findings
The study findings show that 32% are in strong agreement and 56% agree whereas 10%
are in disagreement with the question. Thus, the majority of the respondents feel that competitors
in the surrounding area affect the business of the hotel as customers compare hotel prices and
other factors before making their decision.
16. How far do you agree that political stability and economy of the country will affect the
choice of destination?
Row labels No of response Percentage of
response
Total respondents
Strongly Agree 37 37% 100
Agree 51 51% 100
Indifferent 2 2% 100
Disagree 5 5% 100
Strongly disagree 5 5% 100
Table 16: Political stability and Economy
(Source: As created by author)

55HOTEL AND HOSPITALITY MANAGEMENT
Strongly Agree Agree Indifferent Disagree Strongly disagree
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Seasonality
Graph 16: Political stability and Economy
(Source: As created by author)
Findings
The study findings show that 37% are in strong agreement with the research question and
they have been supported by 51% of the respondents. On the other hand, 10% of the respondents
are not in agreement with the research question. The consumers while making holiday planning
choose peaceful areas with less political unrest and stable economy so that they can enjoy their
leisure time.

56HOTEL AND HOSPITALITY MANAGEMENT
Regression Analysis
Regression 1
SUMMARY
OUTPUT
Regression Statistics
Multiple R
0.8870
36862
R Square
0.7868
34394
Adjusted R
Square
0.7846
59235
Standard
Error
0.4779
94485
Observations 100
ANOVA
df SS MS F
Signific
ance F
Regression 1
82.6490
8472
82.649
08472
361.73
64543
1.15677
E-34

57HOTEL AND HOSPITALITY MANAGEMENT
Residual 98
22.3909
1528
0.2284
78727
Total 99 105.04
Coeffic
ients
Standar
d Error t Stat
P-
value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept
0.1833
47923
0.10028
004
1.8283
591
0.0705
37622
-
0.01565
4547
0.3823
50394
-
0.0156
54547
0.3823
50394
X Variable 1
0.8966
05389
0.04714
1696
19.019
3705
1.1567
7E-34
0.80305
4229
0.9901
56548
0.8030
54229
0.9901
56548
0 20 40 60 80 100 120
0
1
2
3
4
5
6
Normal Probability Plot
Sample Percentile
Y

58HOTEL AND HOSPITALITY MANAGEMENT
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
0
1
2
3
4
5
6
f(x) = 0.877570449352628 x + 0.237718964204111
R² = 0.786834393748908
Regression line
Hotel Characteristics
Occupancy rate
Analysis
Regression analysis is conducted to identify the nature and degree of relationship
between both the variables in the study. In this first regression analysis the relationship between
occupancy rate and hotel characteristics have been identified. Multiple R is a factor, which
determines the goodness so fit as it the correlation coefficient and determines the nature and
degree of relationship between both the variables in the study. The value of multiple R in this
regression analysis is 0.887036862, which quite close to 1 and that signifies strong positive
correlation between occupancy rate and hotel characteristics. As the value of multiple R is
greater than 0.8 the study the goodness of fit is high and in practical study this is a good result as
large number of data falls within the regression equation.
R2 is the coefficient of determination, which shows the explaining capability of the
independent variable of the dependent variable. The value of R2 in this regression is 0.7868,
which means that 78.68% of the characteristics of the dependent variable can be explained by the

59HOTEL AND HOSPITALITY MANAGEMENT
independent variable. However, there is variability of around 21.32 % due to randomness in data,
which is quite common in practical research studies.
In regression analysis, the hypothesis is rejected when the F value is less than 0.05 and in
this study; the value of F is 1.15677E-34, which is less than 0.05. Thus, the null hypothesis will
be rejected and the alternative hypothesis has been accepted. Therefore, there is positive impact
of hotel characteristics on the occupancy rate of the hotel. The regression equation in this
regression analysis is y = 0.8776x + 0.2377, where if the value of x is put as 1 unit, the value of y
will be 1.1069. Therefore, with 1 unit increase in value of x, there is 1.1069 increase in value of
y and this signifies the positive relationship. The regression line shows that nature of the data and
the normality plot identifies the normality of the distribution. The normality plot should resemble
a straight line if the data collected is following normal distribution. In this study, the normality
plot shows that the data is normally distributed.

60HOTEL AND HOSPITALITY MANAGEMENT
Regression 2
SUMMARY
OUTPUT
Regression Statistics
Multiple R
0.9650
24358
R Square
0.9312
72012
Adjusted R
Square
0.9305
70706
Standard
Error
0.2714
13304
Observations 100
ANOVA
df SS MS F
Signific
ance F
Regression 1
97.8208
1219
97.820
81219
1327.9
11095
8.7078E
-59
Residual 98 7.21918 0.0736

61HOTEL AND HOSPITALITY MANAGEMENT
7813 65182
Total 99 105.04
Coeffic
ients
Standar
d Error t Stat
P-
value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept
0.0261
97771
0.05717
5811
0.4581
96761
0.6478
25501
-
0.08726
5761
0.1396
61304
-
0.0872
65761
0.1396
61304
X Variable 1
0.9832
71973
0.02698
2933
36.440
51447
8.7078
E-59
0.92972
5221
1.0368
18724
0.9297
25221
1.0368
18724

62HOTEL AND HOSPITALITY MANAGEMENT
0 20 40 60 80 100 120
0
1
2
3
4
5
6
Normal Probability Plot
Sample Percentile
Y
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
f(x) = 0.947115384615385 x + 0.103365384615383
R² = 0.931272012438156
Regression Line
Hotel Internal Factors
Occupancy Rate
Analysis
. This regression analysis will determine the nature and degree of relationship between
occupancy rate and internal factors. The value of multiple R in this regression analysis is
0.965024358, which quite close to 1 and that signifies strong positive correlation between
occupancy rate and internal factors. As the value of multiple R is greater than 0.8 maximum data
set falls within the regression line, which means goodness of fit, is high.
R2 is the coefficient of determination, which shows the explaining capability of the
independent variable of the dependent variable. The value of R2 in this regression is 0.9313,

63HOTEL AND HOSPITALITY MANAGEMENT
which means that 93.13% of the distinctiveness of the dependent variable can be explained by
the independent variable. However, there is inconsistency of around 7 % due to randomness in
data, which is quite frequent in practical research studies.
In regression analysis, the hypothesis is rejected when the F value is less than 0.05 and in
this study; the value of F is 8.7078E-59, which is less than 0.05. Thus, the null hypothesis will be
rejected and the alternative hypothesis has been accepted. Therefore, there is positive impact of
internal factors on the occupancy rate of the hotel. The regression equation in this regression
analysis is y = 0.9471x + 0.1034, where if the value of x is put as 1 unit, the value of y will be
1.0027. Therefore, with 1 unit increase in value of x, there is 1.0027 increase in value of y and
this signifies the positive relationship. The regression line and the normality plot are showing
that the goodness of fit of collected and normality of the sample distribution in this study.

64HOTEL AND HOSPITALITY MANAGEMENT
Regression 3
SUMMARY
OUTPUT
Regression Statistics
Multiple R
0.8623
95452
R Square
0.7437
25916
Adjusted R
Square
0.7411
10874
Standard
Error
0.5241
03022
Observations 100
ANOVA
df SS MS F
Signific
ance F
Regression 1
78.1209
702
78.120
9702
284.40
30836
9.87548
E-31
Residual 98 26.9190 0.2746

65HOTEL AND HOSPITALITY MANAGEMENT
298 83978
Total 99 105.04
Coeffic
ients
Standar
d Error t Stat
P-
value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept
0.1361
48431
0.11487
2173
1.1852
16811
0.2387
97826
-
0.09181
1653
0.3641
08514
-
0.0918
1
0.3641
08514
X Variable 1
0.9334
93629
0.05535
3388
16.864
25461
9.8754
8E-31
0.82364
6635
1.0433
40624
0.8236
47
1.0433
40624
0 20 40 60 80 100 120
0
1
2
3
4
5
6
Normal Probability Plot
Sample Percentile
Y

66HOTEL AND HOSPITALITY MANAGEMENT
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
0
1
2
3
4
5
6
f(x) = 0.796712363544049 x + 0.364781670474737
R² = 0.743725915886799
Regression Line
Hotel extrenal factors
Occupancy rate
Analysis
. This regression analysis will determine the nature and degree of relationship between
occupancy rate and external factors. The value of multiple R in this regression analysis is
0.862395452, which quite close to 1 and that signifies strong positive correlation between
occupancy rate and external factors. As the value of multiple R is greater than 0.8 majority of
data set falls within the regression line, which means goodness of fit, is high.
R2 is the coefficient of determination, which shows the elucidation capacity of the
independent variable of the dependent variable. The value of R2 in this regression is 0.7437,
which means that 74.37% of the individuality of the dependent variable can be explained by the
independent variable. However, there is irregularity of around 26 % due to unpredictability in
data, which is quite frequent in practical research studies.
In regression analysis, the hypothesis is rejected when the F value is less than 0.05 and in
this study; the value of F is 9.87548E-31, which is less than 0.05. Thus, the null hypothesis will
be rejected and the alternative hypothesis has been accepted. Therefore, there is positive impact

67HOTEL AND HOSPITALITY MANAGEMENT
of external factors on the occupancy rate of the hotel. The regression equation in this regression
analysis is y = 0.7967x + 0.3648, where if the value of x is put as 1 unit, the value of y will be
1.1324. Therefore, with 1 unit increase in value of x, there is 1.1324 increase in value of y and
this signifies the positive relationship. The regression line and the normality plot are showing
that the goodness of fit of collected data and normality of the sample distribution in this study.
4.2 Qualitative Questions to Josh Ogilvie (Director of Marketing and Leisure Sales of the
Jackalope Hotels.)
1. What are the strategies of increasing the mid-week trade in Jackalope Hotel?
According to the director there is scope of improvement in terms of mid-week business.
There is scope of improvement of both MICE (meetings, incentives, conference and events) and
leisure travels. In order to do so they have appointed a business development manager whose key
responsibility area is to bring in more customers and increase sales of the organization. This
consist of providing offers to both local and overseas clients to travel and relax at much cheaper
prices. However, in order to increase the number of overseas travellers the organization is
working on their brand awareness. They are using both digital marketing and promotional
campaigns to increase the awareness of the consumers at global level. The organization has also
developed partnerships with DMC (Destination Management Companies) so that they can bring
in overseas consumers more frequently. According to the director, the organization has been able
to form contracts with 15 high end travel agents and they have been attending international
conferences like LE Miami, ILTM, Luxperience, Virtuoso Travel week to personally present to
travel agents. In order to increase their domestic travels, the organization has been working with
local agencies such as Mr & Mrs Smith and Helloworld’s network of agencies. However, the

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organization likes to keep up their image and do not promote too much discounting
advertisements even on the promotional websites which can be seen only by members.
2. What are the success rate of these strategies?
According to the director, they are pretty confident that these strategies will be effective
and have a high success chance. However, the organization has developed several contingency
plans if these strategies proven to be ineffective.
3. Marketing strategies that are being considered or being discussed.
According to the director they have just been accepted into Virtuoso, a network of the
world’s leading hotels and travel agents. This is an important relationship building network
within the international luxury travel trade. This membership will give them direct access to the
world’s leading travel agents and inbound operators. In addition to this, they have been
evaluating consortia memberships like Leading Hotels of the World or Small Luxury Hotels,
who generate a similar overseas profile.
This year they will look to launch some midweek offers and value add rather than
discount such as complimentary spa treatment with midweek stays of two nights or more etc.
They will also develop more of an events-based marketing program (special dinners etc) and
look to generate occupancy from that.
One initiative that they will be rolling out in March is a two-night midweek yoga retreat in
collaboration with a studio in Armadale. This is likely to sell more than 40 room nights to a
market that otherwise would not have come down.

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4. What is being done with Visit Victoria/ tourism agencies to help increase the occupancy rate
& traffic for the region?
They have been working very closely with Visit Victoria and Tourism Australia, as well
as with regional associations like Go Beyond Melbourne and the Mornington Peninsula Regional
Tourism Association. These agencies, in varying degrees, work on increasing midweek
domestic, interstate and international visitation. The main way the organization has been
supporting their activities is by assisting with media and travel trade families.
Discussion
Therefore, by comparing the quantitative and qualitative data analysis it can be seen that
the internal factors of the hotel are the most important for increasing mid-week trade within the
organization. The regression analysis has shown highest level of correlation between occupancy
rate and hotel internal factors. Similarly, the strategies shared by the director of Jackalope Hotel
shows that they have been focusing on improving factors such as facilities, prices, service
quality, and cleanliness and employee behaviour to improve their mid-week trade. The
organization has been focused on improving the consumer experience by providing
complimentary spa treatments and yoga lessons which shows that they are trying to focus on the
extra amenities part the most. As they have been focused on providing extra facilities, the
organization is not in favour of discounts so they want to keep their prices as constant as
possible. This is because of the fact that consumers are most sensitive to prices but at the same
time the competitors are also sensitive to price change and they may reduce the prices
immediately which would not enable Jackalope Hotel to capture the target segment.

70HOTEL AND HOSPITALITY MANAGEMENT
On the other hand, the result from the quantitative analysis also shows that there is
positive correlation among occupancy rate, hotel characteristics and hotel external factors.
Jackalope Hotel is not at all concerned about the macro factors as it will affect the overall
industry along with the other competitors in the same environment. The hotel has been
promoting themselves in the overseas market which means that they have been promoting their
promoting the hotel characteristics along with the key facilities.

71HOTEL AND HOSPITALITY MANAGEMENT
Chapter 5
Conclusion
5.0 Conclusion
This chapter of study will provide relevant conclusion by linking with the objectives
formulated in the first chapter.
Objective 1: To identify the factors affecting the occupancy rate of Jackalope hotel
Mornington Peninsula
The findings of the study have revealed that hotel characteristics, hotel internal factors
and hotel external factors all influences the occupancy rate of Jackalope Hotel. The data from
regression analysis highlights that the value of multiple R is greater than 0.8 in all instances
which means that there is positive correlation among the variables. However, it has been seen
that internal factors have maximum influence on the occupancy rate of the hotel. The internal
factors such as price, service quality, cleanliness, employee attitude and facilities are the most
factors for increasing the occupancy rate.
Objective 2: To investigate the impact of these factors on the occupancy rate of Jackalope
hotel Mornington Peninsula
The factors assessed in the chapter four of the study shows that all the hypothesis has
been validated and null hypotheses has been rejected in all the cases. This shows that hotel
characteristics, internal factors and external factors all have positive correlation with occupancy
rate. This means that these factors are directly proportional to the occupancy rate; with increase

72HOTEL AND HOSPITALITY MANAGEMENT
ion one factor there will be increase in the occupancy rate. The marketing director of Jackalope
hotel is enhancing these factors to improve the occupancy rate during mid-week which validates
the fact these factors have significant positive influence on the occupancy rate.
5.1 Recommendation
Objective 3: To recommend suitable strategies for improving the occupancy rate of Jackalope
hotel Mornington Peninsula during mid-week trade
The organization has been using various strategies to improve their occupancy rate both
in foreign and local market. Some of their strategies are still going through discussions. The
strategies shared by the director of Jackalope Hotel shows that they have been focusing on
improving factors such as facilities, prices, service quality, and cleanliness and employee
behaviour to improve their mid-week trade. The organization has been focused on improving the
consumer experience by providing complimentary spa treatments and yoga lessons which shows
that they are trying to emphasize on the extra amenities part the most. As they have been focused
on providing extra facilities, the organization is not in favour of discounts so they want to keep
their prices as constant as possible. However, the organization is not putting enough emphasis on
the improving their employee behaviour and service quality which could be a concern for them.
Jackalope Hotel should also focus on providing the employees with training so that they can
improve their skills and provide better service. The employees should be motivated so that they
are able to perform to their full potential.
Even though, the director is against the policy of providing discounts, the organization
should provide discount on timely basis by analysing the competitor response. The organization
should focus more on digital marketing as it reduce their marketing cost and improve their

73HOTEL AND HOSPITALITY MANAGEMENT
operating margin. The digital media such as social media websites, email marketing, search
engine marketing should be used the organization to improve their brand awareness in the
overseas market. Moreover, social media will provide more exposure to the organization and
they should optimize their online website so that they can grab the attention of the consumers at
zero moment of truth.

74HOTEL AND HOSPITALITY MANAGEMENT
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Appendix
1. How often do you visit hotels in a year?
a) Once a year
b) Twice a year
c) Thrice a year
d) More than 4 times
2. What is your profession?
a) Businessman
b) Doctor
c) Corporate employees
d) Others
3. What is your monthly income?
a) Less than 10,000
b) Between 10,000 and 20,000
c) Between 21,000-50,000
d) More than 50,000
4. How much do you want to spend on hotel accommodation and services?

80HOTEL AND HOSPITALITY MANAGEMENT
a) Less than 100
b) Between 100-200
c) Between 200-500
d) Above 500
5. What is your purpose for visiting the hotel?
a) Business
b) Leisure
Questions on occupancy rate
6. How far do you agree that there are plenty of rooms available during midweek?
a) Strongly agree
b) Agree
c) Indifferent
d) Disagree
e) Strongly disagree
7. How far do you agree that hotel booking is easier during midweek?
a) Strongly agree
b) Agree

81HOTEL AND HOSPITALITY MANAGEMENT
c) Indifferent
d) Disagree
e) Strongly disagree
Questions on hotel characteristics
8. How far do you agree that location of the hotel is influences your buying behaviour?
a) Strongly agree
b) Agree
c) Indifferent
d) Disagree
e) Strongly disagree
9. How far do you agree that number of rooms in a hotel influences your buying behaviour?
a) Strongly agree
b) Agree
c) Indifferent
d) Disagree
e) Strongly disagree
Questions on internal factors