Effects of faith-based attributes on hotel prices: the case of halal services

Abstract

For more than 40 years, researchers have examined an exhaustive set of attributes as price determinants in tourism and hospitality. In extending this rich research stream, this study aims to propose and empirically assess a new set of hotel attributes, namely, faith-based attributes that allow tourists to continue following the activities and rituals guided by their religions while on vacation. Design/methodology/approach: Using the Bayesian quantile regression for the first time in the field of hotel pricing, the hedonic pricing models examine both internal and external faith-based attributes, namely, halal services, which cater to the needs of Muslim tourists, in a sample of 805 hotels across the top three non-Muslim country destinations (Singapore, Thailand and Japan). Findings: By exploring the effects of faith-based (halal) attributes available in hotels located in the biggest cities of the above-mentioned destinations, this study provides evidence for the significant role of faith-based (halal) attributes in determining hospitality prices. Practical implications: This study’s findings offer a resource for several implications for tourism and hospitality scholars, practitioners and policymakers, especially within the field of Muslim/halal tourism, to develop action plans and strategies. Originality/value: This study is the first to introduce a novel set of faith-based hospitality attributes and empirically assess their impact on hospitality price formation. Additionally, it contributes to the hedonic pricing method by being the first to use the Bayesian quantile regression.

Keywords Bayesian quantile regression, Faith-based attributes, Hedonic price model, Hotel prices, Muslim/halal tourism