An examination of the e-bookers and e-browsers in emerging markets – online browsing behaviour in independent hotels in Hoi An

An examination of the e-bookers and e-
browsers in emerging markets – online
browsing behaviour in independent
hotels in Hoi An
Presented by Meng-Mei Chen
© EcolehôtelièredeLausanne
Hilary Murphy, Yung
Dang & Meng-Mei Chen

2
AGENDA
1. Introduction
2. Literature Review
3. Hypothesis & Research Objectives
4. Methodology
5. Findings
6. Conclusions
© Ecole hôtelière de Lausanne

3
INTRODUCTION
• OTAs have emerged as key players in the market (Xiang,
Wang, O’Leary & Fesenmaier, 2014)
• Small independent hotels cannot compete with OTAs due to
investment required
• Presence on OTAs and UGC sites is critical
• Over dependence on third parties can lead to
- Increased competition, distancing the customer from the hotel
supplier and incur commission charges
• Conversion of e-browsers to e-bookers on the hotels’ own
websites can reduce the over-reliance of small hotels on third
parties (Toh et al., 2011; Anderson, 2009)
Aim: to examine the online behaviours of e-
browsers and e-bookers in the context of
independent hotels in Hoi An.

4
LITERATURE REVIEW
• Specific nature of independent hotels
– Centralized organizational structure, limited financial
capacity, human resources restrictions and a lack of
business expertise (Hills & Cairncross, 2011; Moriarty,
Jones, Rowley & Kupiec-Teahan, 2008; Gilmore, Gallagher
& Henry, 2007)
– 93.2% of independent hotels handle bookings via email and
are slow to use OTAs and social media to reach both e-
browsers and e-bookers and risk disintermediation in the
online market place (Mathies, 2010)
• e-browsing & e-booking behavior
– Affected by travellers’ personal and situational
circumstances (Fodness & Murray, 1999)
– Most significant factors:
age, the level of education, the length of flights, the length of
stay and the frequency of browsing

5
HYPOTHESIS & RESEARCH OBJECTIVES
Hypothesis:
Research Objectives:
• Which socio-demographic variables differentiate e-browsers and
e-bookers?
• Are there significant differences between e-browsers and e-
bookers in the way they use online information sources?
• Are there significant differences between e-browsers and e-
bookers in their perceptions of the important factors in choosing
their booking method?
There is a statistically significant relationship
between the socio-demographic characteristics of
hotel guests and online hotel reservation behaviour.

6
METHODOLOGY
• Quantitative approach
• Single cross-sectional design
• Questionnaire completed by a sample of 304 guests
(collected from March to April 2014)
• Sample: Guests in 17 independent hotels in Hoi An,
Vietnam with an online reservation system
• Response rate of 59.9% (182 validated
questionnaires)

7
FINDINGS:
Booking Behavior of Respondents
69%
31%
e-Browsers vs. e-Bookers
Bookers
Browsers

8
FINDINGS: Demographic Profiles & Travel
Behaviour of Respondents - Age
0
5
10
15
20
25
30
35
40
Less than
24
25-36 37-48 49-60 Above 60
%
Age Group
Age
All Respondents
Bookers (n=126)
Browsers (n=56)

9
Behaviour of Respondents - Age
All respondents e-bookers e-browsers
Hoi An is more
popular with
older age
categories
• Significant difference between age of
bookers vs. browsers:
• Older = more likely to browse & book
due to past experience (as in Bonn et
al., 1998; Weber & Roehl, 1999; Kim &
Kim, 2004)
• Age is also associated with higher
income and thus, ability to book (Law &
Hsu, 2006)

10
Behaviour of Respondents – Level of Education
0
5
10
15
20
25
30
35
40
45
50
High school &
some college
Bachelor degree Postgraduate
degree
%
Education
Level of Education
All Respondents
Bookers (n=126)
Browsers (n=56)

11
Behaviour of Respondents – Level of Education
Most respondents
have a bachelor’s
degree (n=72)
• No significant difference between e-
bookers and e-browsers
• Confirms findings from Law & Hsu (2006)

12
Behaviour of Respondents – Length of Stay
0
10
20
30
40
50
60
Less than 3
days
Between 3 - 7
days
More than 7
days
%
Length of Stay (LOS)
Length of Stay
All Respondents
Bookers (n=126)
Browsers (n=56)

13
Behaviour of Respondents – Length of Stay
Compared to avg.
LOS in Hoi An of 2.3
days, the majority
of respondents
stayed more than 3
days
85% of e-bookers
stayed more than 3
days
75% of e-browsers
stayed more than 3
days
Confirms findings by Wu et al. (2013), that those staying
between 3 -7 days tend to book on the hotel’s website

14
Behaviour of Respondents – Length of Flight
0
10
20
30
40
50
60
70
Less than 3
hours
Between 3 - 6
hours
More than 6
hours
%
Length of Flight
All Respondents
Bookers (n=126)
Browsers (n=56)

15
Behaviour of Respondents – Length of Flight
58.5% of
respondents
travelled more
than 6 hours
No significant differences between e-bookers
& e-browsers
Aligned with seasonality, as between February – May is peak
season for international visitors

16
Behaviour of Respondents – Frequency of
Browsing Activity
0
10
20
30
40
50
60
70
Less than 10
times per week
Between 10 - 20
times
More than 20
times
%
Frequency of Browsing Activity
All Respondents
Bookers (n=126)
Browsers (n=56)

17
Behaviour of Respondents – Frequency of
Browsing Activity
All respondents E-bookers E-browsers
64.3% of
respondents
browse 20 or
more time prior
to their arrival at
the hotel
No significant differences between e-bookers
& e-browsers

18
FINDINGS: Information Sources used by e-
browsers and e-bookers
0
10
20
30
40
50
60
Never 1-3 time 4-7 times More than 7
times
%
Hotel Sites
All Respondents
Bookers (n=126)
Browsers (n=56)
• Overall, no significant differences between e-bookers and e-
browsers in information sources except in usage of hotel sites

19
FINDINGS: Important Factors when Choosing
Booking Method
0
1
2
3
4
5
Rating
• Respondents placed higher importance on the information and
convenience, and less importance on the financial incentives
• No significant differences between e-bookers & e-browsers

20
CONCLUSIONS (1/2)
• Demographic Profile of e-browsers & e-bookers
– Significant difference: age, length of stay
– No significant difference: education, length of flight, frequency
of browsing
• More scope to attract more online bookings via the hotel
website for the short-stay travellers
• Hoteliers should closely monitor information sought at
browsing stage to ensure online information about their
property is coherent

21
CONCLUSIONS (2/2)
• Both groups value information and convenience, and place
less emphasis on financial incentives
• Ease of searching, availability of reviews, faster
transactions and web security are all equally important for
e-bookers and e-browsers
• Though independent hotels can capture direct bookings on
their website, must prepare for OTAs, online forums &
review sites
• Independent hotels should ensure their website visibility,
ease of browsing and booking, and information accuracy on
all relevant external information sources

22
Thank you

23
REFERENCES
Anderson, C. K. (2009). The billboard effect: Online travel agent impact on non-ota reservation volume. Cornell Hospitality Report,
9(16), 1-12.
Anderson, C.K. (2011). Search, OTAs, and online booking: An expanded analysis of the billboard effect. Cornell Hospitality Report,
11(8), 1-14.
Dreze, X. & Zufryden, F. (2004). Measurement of online visibility and its impact on Internet traffic. Journal of Interactive Marketing,
18(1), 20-37.
Fesenmaier, D. R., Xiang, Z., Pan, B., and Law, R. (2011). A framework of search engine use for travel planning, Journal of Travel
Research, 50(6), 587-601.
Hills, J.R. & Cairncross,G. (2011). Small accommodation providers and UGS web sites: perceptions and practices, International Journal
of Contemporary Hospitality Management, 23(1), 26-43.
Inversini, A. & Masiero, L. (2014). Selling rooms online: The use of social media and online travel agents, International Journal of
Contemporary Hospitality Management, 26(2), 272-292.
Jones, P. & Chen, M. (2011). Factors determining hotel selection: online behaviour by leisure travellers. Tourism and Hospitality
Research, 11(1), 83-95.
Jeffrey, D. & Barden, R.R. (2001). Multivariate models of hotel occupancy performance and their implications for hotel marketing.
International Journal of Tourism Research, 3(1), 33-44.
Kang, B. Brewer, K.P., and Baloglu, S. (2007). Profitability and survivability of hotel distribution channels: An industry perspective.
Journal of Travel & Tourism Marketing, 22(1), 37-50.

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