Influence of Information Search and Accommodation Reservation on Purchase

It has been established in decision-making models that the search for information is part of a selection process (Mayo, 1974; Pearce, 2005). Information can be acquired at various stages,

pre-trip, in-transit and at-destination, which eventually lead to a final decision(Rompf, DiPietro, & Ricci, 2005). While a number of studies have documented information searching, the information used by guests to select commercial accommodation remains an under-studied phenomenon. Richards and Wilson (2003) and Nash, Thyne, and Davies (2006) focused on young travellers’ information search processes, but this was in the general context of trip planning, rather than commercial accommodation selection specifically.

2.5.1 Information search and sources

When making decisions, consumers can be viewed as information processors (Bettman, 1979), where for the betterment of their selections they will continuously look for information and process it until they reach the final option (Bettman, 1979; Pearce & Lee, 2005). The information search can be classified as either an internal or external search. An internal search is information retrieved from the individual’s memory, for example, information gathered from previous experiences (Moutinho, 1987) or reading, which is stored in the memory. External information is derived from sources other than the individual’s memory, such as family and friends, travel consultants, media, advertisements, travel literature, brochures, commercial accommodation promotions, word of mouth (Chen & Gursoy, 2000; Moutinho, 1987), storytelling (Adaval & Wyer, 1998), electronic word of mouth and the Internet

(Bronner & Hoog, 2011; Litvin, Goldsmith, & Pan, 2008). Factors that encourage users to use external information include, among others, when there are greater differences in product alternatives, higher risk and less experience (Capella & Greco, 1987).

Few debate the necessity of sourcing information when making decisions. The ongoing relevance of this issue is that in contrast to buying a tangible product, travellers are expected to be highly involved in information gathering. Buying patterns when purchasing tourism products and services are considered to be more complex than buying patterns for tangible items (Bei, et al., 2004; Lockyer, 2001; Swarbrooke & Horner, 2007), and are a non-routine process, so potential travellers need to carry out an extensive information search before committing themselves to making a purchase (Niemann, Mochol, & Tolksdorf, 2008; Swarbrooke & Horner, 2007).

Generally, the sources of information seem limitless (Rompf, et al., 2005). Individuals can either be a single information source user or use combined information from various sources (Snepenger, et al., 1990), falling into either the active or passive search group (Schul & Crompton, 1983). The selection and the extent of the search depend on the characteristics of the traveller, such as gender, education and travel experience (Barber, Dodd, & Kolyesnikova, 2009; Richards & Wilson, 2003; Rompf, et al., 2005; Schul & Crompton, 1983; Van Raaij & Francken, 1984), and the characteristics of the trip, such as travel duration, expenditure, destination and purpose (Fodness & Murray, 1997, 1999; Snepenger, et al., 1990). On

average, young travellers seek out at least three different information sources when planning a trip (Richards & Wilson, 2003). Little is known about the information used by young

travellers to select commercial accommodation.

While there have been many classification schemes for the information sources classified generally as internal and external sources (Beatty & Smith, 1987; Bettman & Park, 1980; Engel, Blackwell, & Miniard, 1995; Fodness & Murray, 1998; Quester et al., 2007), it has been argued that the external information is more important, as it is used first in travel planning and preferred by those who travel to international or unfamiliar places (Goossens, 1994; Murray, 1991; Seabra, Abrantes, & Lages, 2007; Snepenger, et al., 1990). Money and Crotts (2003) classified external sources of information as non-marketer dominated (personal advice and recommendations from travel guides and channel members) and marketer

dominated (print ads, online ads, and efforts by tourism offices).

Over time, as technology has evolved and mediated the tourism encounter, social media has become a powerful tool to influence the interests of potential travellers (Shakeela & Weaver, 2013). Shared videos with online comments provide an opportunity for the viewers to

communicate among each other and interact with the video director to share more information and experiences (Tussyadiah & Fesenmaier, 2009), and hence are more important to

consumers of experience products (intangible) than consumers of search products (tangible) (Bei, et al., 2004). Another is electronic word of mouth, which is information posted on the Internet by other travellers about their experiences with products and services through, for example, rating scales or textual comments (Bronner & Hoog, 2011; Litvin, et al., 2008). Rather than just a list of features and benefits, storytelling increases the attractiveness of holiday trips as customers store and retrieve stories through processing information and communicating (Adaval & Wyer, 1998). Stories and reviews allow customers to anticipate the suitability of commercial accommodation, especially in regard to cleanliness and intangible services.

Of all the options available, it seems possible that word of mouth and the reputation of the accommodation provider remain important, which Ananth, et al. (1992) previously named as the main influences on accommodation selection. More than two decades on, with all the changes in technology, this result needs to be revisited.

2.5.2 Reservation method and planning

It is important to consider how people reserve or book their accommodation as part of their purchase decision. It is also useful to understand the reservation approaches employed by accommodation operators in turning enquiries into confirmed guests. Nearly two decades ago, business objectives and policies such as occupancy level, size and room rates were identified to influence the reservation methods used by accommodation operators (Meidan & Chiu, 1995); for example, accommodations targeting high occupancy rates need to have well- trained reservation personnel who can take and secure reservation enquiries efficiently. Unlike business guests, the vast majority of leisure guests make bookings directly with the commercial accommodation provider (Callan, 1996). Recent studies have recognised that online booking is fast becoming a popular and easy way to book accommodation (Fam, Foscht, & Collins, 2004; Tsujii, Takahashi, Fujita, & Tsuda, 2014).

Richards and Wilson (2003) found that young travellers tended to book their travel in advance of their travel dates (six weeks to two months or more). This was the case with commercial accommodation booking also, which was generally booked about one week later than air travel. They seem to be more relaxed and have a much shorter lead time than other travellers, who in another study were found on average to book close to six months before their trips (Dellaert, et al., 1998). Richards and Wilson (2003) reported that very few young travellers book a place in advance of their arrival, as most of them are comfortable with arranging accommodation after arriving at their destination, particularly those who identify themselves as backpackers, and especially those with vast travel experiences. One decade on, with the evolution of booking and pre-payment technology and the changes in destination and activity choices, it is unclear how this situation may have changed for the young traveller segment with regards to accommodation booking.