Designed By You: The Effects of Customized Hotel Experiences On Perceived Value and Willingness to Pay

This research explores how hotel companies can offer more personalized and differentiated experiences by implementing modern customization technologies in the pre-purchase phase and through such means significantly increase perceived value and willingness to pay. We specifically consider two methods: a feature selection method versus a so-called matchmaker. We contribute to both experience and customization theories by providing preliminary evidence that regardless of the customization tool consumers are prepared to pay more for such cocreated and customized hotel stays. Moreover, we take consumer identity fit into consideration and illustrate the differentiating effect of booking time pressure on the two customization tools on perceived value.