We explore the impact of customer review ratings, review volume and hotel characteristics such as star rating, location, size and price on the proportion of domestic sales in our paper. These factors may influence domestic and International sales differently because of the possible differences in domestic and international visitor’s characteristics
For example, information asymmetries may exist between domestic and international customers. Being more knowledgeable about the city, its surroundings and the transportation system, domestic customers are more likely to be less constrained in their hotel choice that is without compromising quality for price they may consider a larger set of hotels. For this reason, international customers may prefer to pay more for the hotels having convenient location while domestic customer prefer to pay less for the same quality hotels as they have a larger set of choice. As a result of this, domestic visitors may exhibit higher price sensitivity as they probably have more information about hotels and their locations. Therefore, we construct the following hypotheses: