Perceived risk and booking intention in the crisis of Covid-19: comparison of tourist hotels and love hotels

ABSTRACT

The Covid-19 pandemic has presented a range of economic consequences for the tourism industry. Notably, this has been striking mainly because of the rising fear toward public places and travel avoidance. Vietnam has one particular market segment – love hotels – and these hotels have not suffered as much as the overall hotel industry. Applying Structural Equation Modelling (SEM), and robustness test using Woodside's Accurate case outcome modeling (ACOM) of 2019 the study here confirms that: (i) Covid-19 knowledge increases conventional customer’s perceived risk; (ii) Perceived risk (before and after Covid-19) have a negative effect on hotel booking intention; (iii) risk perception and booking intention of customers in two hotel types differ significantly, in which there is a preference for love hotels. Despite love hotels' remarkable market value, the academic attention to this special business model, has to date, been little researched. This research contributes evidence of asymmetric perceived physical risk as well as booking intention of the two market segments namely, tourist and love hotels.

KEYWORDS:

• ACOM
• booking intention
• Covid-19
• fsQCA
• love hotels
• perceived risk
• SEM

Acknowledgment

The gratefulness is dedicated to valuable comments and instructions of Professor Arch Woodside on procedure of accurate case outcome modelling (ACOM). The authors sincerely appreciate Moc Lan Hotel system in Ho Chi Minh City, Vietnam for their supports in qualitative interviews and providing data on their business performance.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 https://www.statista.com/statistics/247264/total-revenue-of-the-global-hotel-industry/

2 http://vietnamnews.vn/economy/715703/most-tourism-firms-forecast-80-per-cent-revenue-drop.html

Additional information

Notes on contributors

Quyen Pham Minh

Quyen Pham Minh is a Lecturer in Faculty of Economics, Thu Dau Mot University of Vietnam. She is now PhD Candidate in RMIT University, Vietnam. Her teaching and research interests relate to Hospitality management, marketing and finance.

Nguyen Ngoc Mai

Mai Nguyen Ngoc is a Lecturer in Ho Chi Minh City University of Economics and Finance of Vietnam. Her teaching and research interests include human resource management, marketing and business administration.