Discrete Choice Analysis in Hospitality Management Research

Abstract

This article focuses on discrete choice analysis (DCA), which offers an effective approach for incorporating customer preferences into operating decisions in hospitality businesses. First the theoretical background of DCA is presented, including a discussion of how DCA compares to conjoint analysis. The authors then present a guide to designing and conducting a DCA study. Conducting a discrete choice study involves identifying the attributes relevant to customers' choices and the appropriate levels of these attributes, designing an experiment, collecting data and estimating parameters using a multinomial logit model. Finally, the strategic implications of DCA in hospitality management research are discussed.