A Structural Equation Model of Factors Influencing the Decision to Book Three-Star Hotels in Thailand

Abstract

This research aimed to 1) study the causal factors of marketing mix, brand equity, and service quality that influence the decision to book 3-star hotels in Thailand, and 3) propose guidelines to enhance the decision to book 3-star hotels in Thailand. The quantitative research consisted of 420 tourists who had booked 3-star hotels online. The sample size was determined using a criterion of 20 times the observed variable. Stratified random sampling was used. Questionnaires were used for data collection and structural equation modelling was used to analyse the data. For the qualitative research, in-depth interviews were conducted with representatives from the Hotel and Tourism Association, 3-star hotel operators, and tourist representatives who had booked 3-star hotels online, totalling 13 people. Content analysis was used. The results showed that 1) service quality has the highest influence on the decision to book 3-star hotels in Thailand, followed by marketing mix and brand equity, respectively. 2) guidelines to enhance the decision to book 3-star hotels in Thailand, the “SBMD Model,” where S stands for service quality, B stands for brand equity, M stands for marketing strategy, and D stands for decision to book 3-star hotels in Thailand, which must focus on problem awareness and information search. Evaluate alternatives, purchase decisions, and post-purchase behaviour.