In hotel booking decision-making, consumers must incorporate booking timing and cancellation policy with different price options to deal with uncertainty in the upcoming travel and their utilities that aggregate spending and enjoying on the hotel booking. To fill the gap in the literature that omitted the consumers’ time-inconsistent booking behavior over time and the mechanisms behind booking decisions and timing decisions, this study investigates consumers’ preference between two price options related to cancellation over time and their preferred booking timing. Quasi-hyperbolic discounting model in behavioral economics is applied to explain time-inconsistent behavior by lab experiment.
"Time-Inconsistent Preference in Booking Hotels: Role of Quasi-Hyperbolic Discounting in Booking Timing and Price Options Change Over Time,"
ICHRIE Research Reports: Vol. 8:
2, Article 4.
Available at: https://via.library.depaul.edu/ichrie_rr/vol8/iss2/4