Immersive stays in virtual hotels: The effect of experiences in metaverse hotels on customer responses

Abstract

The rise of the metaverse has breathed new life into the hospitality industry. Although metaverse-based virtual hotels have emerged, there is still limited empirical research on their impact on customer responses. This study aims to address this gap by examining the effectiveness of experiences in metaverse hotels through an experimental method. The results indicate that metaverse hotels enhance customers' brand attitude and booking intention compared to traditional methods relying on two-dimensional images and videos. These favorable effects of metaverse hotels are sequentially mediated by increased interactivity and enhanced mental simulation. Additionally, the study identifies that an individual's need for stimulation moderates the effect of metaverse hotels, with customers having a lower (versus higher) need for stimulation being less influenced by the metaverse. These findings provide initial insights into whether, why, and for whom metaverse hotels yield positive marketing outcomes, and offer practical guidance for hotel practitioners exploring metaverse adoption.