WTP values are derived from the estimated models as the ratio between the coefficient associated with a non-monetary attribute and the coefficient associated with the price attribute. Ratios involving random parameters are computed by averaging the individual WTP estimates. In line with the specification of the price attribute in the choice experiment, WTP values (reported in Table 4) are interpreted as per room per night. On average, hotel guests are willing to pay HK$771 more (per room per night) for a room with a harbour view compared to one with a city view. This figure is considerably higher than what is currently charged (up to HK$400), though is in line with what previously found in Wong and Kim (2012) in the same destination. In fact, they observe a higher WTP for harbor view compared to building view, ranging between HK$674 (for room located at the first floor) and HK$1,013 (for room located at the twentieth floor). Having access to the club is valued, on average, HK$437 per night. Currently, club rooms are priced at least $980 higher than standard rooms, although these two figures cannot be directly compared since club rooms include additional services other than those investigated in the choice experiment. The option to cancel the reservation with a full refund of the amount paid is valued, on average, at HK$122. This is only 12.7% of the actual minimum free cancellation policy (HK$960) available to guests during the booking process. Indeed, only a small share (16% – see Table 1) of the sample had reserved a room including the cancellation option. Furthermore, hotel guests are willing to pay, on average, HK$220 for a room located 10 floors higher, HK$226 for the addition of beer and wine in the complimentary mini bar, and HK$164 for a free guest smartphone including free voice and data, which is considerably higher than the HK$8 per room service cost faced by the hotel. For these last three attributes, a reference to current pricing is not available as the hotel fares do not vary according to the floor, and all guests can benefit from the use of a smartphone during their stay and can enjoy the same complimentary items in the mini bar. It is interesting to note that Wong and Kim (2012) also observed significant differences in the maximum WTP declared by tourists for rooms with different views and located at low or high floors. The findings in this study confirm therefore the relevance of the floor level in tourists’ preference for hotel room and support the use of this attribute in pricing strategies.
The WTP values for the different guest segments investigated in models MPurpose and MFamiliarity are further provided in the second and third column of Table 3. The difference in the WTP values for leisure and business travelers is attributable to the different price sensitivities and hence uniform in the magnitude. In fact, WTP values for business travelers are about 25% higher than those for leisure travelers. Conversely, the heterogeneity observed across first-time and repeat visitors in the majority of the attributes suggests a differentiated pattern of their WTP values. Indeed, the greatest difference in the WTP values refers to the WTP for beer and wine in the complimentary mini bar. First-time travelers are on average willing to pay 73% more (HK$299) than repeat travelers (HK$173). Beer and wine are relatively inexpensive in Hong Kong; the guests may discover the low value as they become more familiar with the destination. The lowest difference in the WTP values is instead observed for the harbour view. In this case, average WTP of first-time (HK$787) and repeat (HK$757) travelers only differ by 4%, confirming the importance of the view in the selection of a hotel guestroom.