Decision-Making In Hotel Pricing

This study was conducted to determine and obtain facts and resolution regarding the decision making on hotel room rates on the sustainability of the hotel industry with
particular emphasis on hotels in the northern states of Malaysia viz Kedah, Penang Island, Perlis and Langkawi Island. The special emphasis in this study is to examine
how the marketing strategy, guests' disposable income and the various types of guests have influenced the hotels on decision making of hotel pricing. In this study, 60 hotels
are randomly selected and only 20 hotels responded to the questionnaires. Questionnaires were distributed to respondents followed by interpretations. The analysis of these inputs were conducted with the SPSS software using mean statistics, standard deviation, t-tests, ANOVA (analysis of variance) and correlation statistics. The relevance of the results will be based on the significant level. An accepted significant level will be 0.95 or 5% . The result of this study revealed that marketing
strategies do not influenced the hotel on decision making in pegging room rates to the multi-varied range of customers and theirs' disposable income. Further to this, a series of suggestions and recommendations have been put fonvard as a guideline to the industry. It is hoped that these guidelines will be a norm in the business practice.