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The influence of price dispersion and price fairness on the choice of hotel and OTA: The moderating effect of hotel star classification

European Journal of Tourism Research | 2026

Paper Details

Authors: Rita P.; Ramos R.; Vong C.; Barreiros C.

DOI: 10.54055/ejtr.v42i.4172

Journal: European Journal of Tourism Research

Year: 2026

Publisher: Varna University of Management

Document Type: Article

Open Access: All Open Access; Gold Open Access; Green Open Access

Cited by: 0

Abstract

This study applies Prospect Theory to examine how star rating classification affects the relationship between price dispersion, price fairness, and customers' decisions when choosing a hotel and booking channel. Data were collected from 207 hotel customers using Trivago’s metasearch engine in a scenario-based experimental design to test the hypotheses. The findings show that star ratings significantly influence hotel booking choices, with customers favouring cheaper options in wide price dispersion scenarios and more expensive options in narrow price dispersion scenarios. This study contributes to the literature by extending Prospect Theory to metasearch platforms and revealing how star ratings moderate the effects of price dispersion and fairness on the booking channel. The results provide valuable insights for hotel managers and online travel agency practitioners in developing effective marketing and pricing strategies. © 2026 The Author(s).

Keywords

customer decision-making; metasearch engine; online travel agency; price dispersion; price fairness; star ratings