THE IMPORTANCE OF CONSUMER GUIDE INFORMATION TO MANAGEMENT: THE MOBIL ``CHECK'' AND HOTEL PRICING BEHAVIOR

Abstract

Consumer guide information in the tourism industry is designed to provide consumers with information in such areas as value and quality. However, hotel managements are also aware of consumer guide ratings. This study analyzes hotel managements' pricing behavior before and after a change in value rating for hotels. Specifically, pricing and value information on hotels from the Mobil Travel Guides relating to several states and provinces in the US and Canada were analyzed. The Mobil Travel Guides awards a ``check'' to hotels that they deem a good value. The results indicate that hotel managements altered their pricing strategies before and after the gain or loss of a ``check'' by Mobil. These pricing changes were significantly different from hotels not gaining or losing a `check.''