A multivariate analysis of hotel benefit bundles and choice trade-offs

Abstract Marketing research in hotels is generally limited to the analysis of guest related data, collected either during registration or from guest comment cards. The data obtained in this fashion have little merit as predictors of customer behaviour (Lewis, 1981) yet techniques of multivariate analysis are available which enable management not only to predict customer choice with some degree of confidence but to develop more appropriate segmentation, positioning and marketing mix strategies. This paper explores the application of these techniques in the competitive hotel market at the world's busiest airport—London Heathrow. With the cooperation of Holiday Inn management, a two stage programme of research was undertaken.