Analysis of Electronic Word-of-Mouth and Brand Image on Hotel Booking Intentions

Abstract

The growth of internet and information technology has been very fast. In the business sector, this growth has caused behavioral changes in both the consumers and the producers. The internet technology offers flexibility and ease in doing business such as consumers may search wherever they like, whenever they like, comparing the service/products from competing sellers, finding varieties of offering and payment flexibilities. For producers, internet offer new business model where they can run their business almost 24 hours and 7 days. Producers may also reach consumers closely while also efficient. One among highly demanded service using internet is online hotel booking. Many consumers are now prefer booking the hotel using particular online applications since it offers many benefits. The trend on online booking makes many businesses take the advantage of establishing online booking internet services. There are many online booking applications and consumers may choose which applications best to help them to find good hotel. In order to be chosen by the consumers, online booking applications should manage their performance thus gaining positive brand image. The Hotel should also manage good relationships with online booking providers in order to increase their booking. This study analyzes the influence of electronic word-of-mouth (e-wom) and brand image on hotel booking intentions.

By analyzing 255 valid sample from online survey, the results of statistical analysis using Partial Least Squares (PLS) revealed that e-wom influence on brand image and brand image influence on hotel booking intentions are positively significant. While e-wom influence to hotel booking intentions is not significant. This study can be interpreted that Hotels should use a well managed brand image booking applications/providers in order to receive more booking from online users. Internet is very effective for networked communications. Even though not directly significant to influence booking intention, e-wom is important for both the hotel and the booking application providers. Thus, overall, all parties using internet for doing business need to concern on the importance of creating good brand image and managing effective e-wom.