Domestic free independent tourists’ satisfaction and willingness to pay a premium, and intention to revisit: Deluxe hotels in Busan

ABSTRACT This study aims to propose a new marketing strategy for the new trend of hotel industry becoming more competitive due to the emergence of various accommodation facilities along with the Consumption Propensity(CP) of Free Independent Travler(FIT). For this purpose, the survey was conducted through the Internet and classified the CP into 5 types by using the cluster analysis based on the survey respondents of 332 FIT who have experience of using Deluxe hotels in Busan. As a result, there was a significant difference in satisfaction, the willingness to pay premium and intention to revisit depending on CP. To be specific, others conscious/conspicuous CP showed the highest satisfaction, the willingness to pay premium and intention to revisit, while impulsive CP showed the lowest satisfaction, the willingness to pay premium and intention to revisit for Deluxe hotels. Therefore, the results of this study are expected to make a positive contribution, providing useful information to create strategies to intrigue more domestic FIT and develop better products and service for Deluxe hotel.