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Customer preferences for staycation package attributes

Richard T.R. Qiu (Hospitality and Tourism Research Centre, School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong, China)
Brian E.M. King (Department of Hospitality, Hotel Management and Tourism, Texas A&M University, College Station, Texas, USA)
Mei Fung Candy Tang (Department of Hospitality, Hotel Management and Tourism, Texas A&M University, College Station, Texas, USA)
Tina P. Fan (Department of Integrated Resort and Tourism Management, University of Macau, Macao, China)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Article publication date: 11 July 2023

Issue publication date: 23 February 2024

439

Abstract

Purpose

This study aims to progress scholarly understanding of the staycation phenomenon by examining customer segments and documenting local customers’ attribute preferences.

Design/methodology/approach

A stated choice experiment is used to examine customer preferences for staycation package attributes. Latent class discrete choice modeling is deployed to classify customers into market segments based on their preferences. The profile of each segment is enhanced by documenting customer characteristics and consumption styles.

Findings

Six prominent market segments are identified using a combination of sociodemographics, consumption styles and staycation attribute preferences. The findings draw on consumer experiences during the COVID-19 pandemic to generate theoretical insights into preferred staycation packages. Empirically, the estimation results from the research framework and choice experimental method demonstrate that staycation market segments exhibit distinct preference structures.

Research limitations/implications

Practitioners and policymakers can incorporate the findings of this study in designing and/or assessing staycation packages. This can ensure differentiated products for defined segments that resonate within local communities through positive word of mouth, thus offering prospective spillovers to visiting friends and relatives.

Originality/value

This is a pioneering study on preference heterogeneity from the customer perspective, with a focus on staycation markets. The findings can encourage and assist hotel sector leaders to capitalize on local market developments to achieve a more resilient hospitality business model.

Keywords

Citation

Qiu, R.T.R., King, B.E.M., Tang, M.F.C. and Fan, T.P. (2024), "Customer preferences for staycation package attributes", International Journal of Contemporary Hospitality Management, Vol. 36 No. 4, pp. 1327-1352. https://doi.org/10.1108/IJCHM-10-2022-1287

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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