Advisers

Esterlin B. Regatillo, MPA

Discipline

Hospitality Management

Abstract

Inflation reduces consumers’ purchasing power and may influence spending behavior across industries. In the hospitality sector, rising costs of goods, services, and operations may affect hotel pricing strategies and customer decisions. This study examined the relationship between inflation and customer spending behavior in hotels in District 1, Quezon City, focusing on booking frequency, customer preferences, spending on add-ons, and price sensitivity. The study employed a descriptive-correlational research design. Data were collected from 50 hotel guests through a structured questionnaire using a four-point Likert scale. Respondents were selected through random sampling from guests of a selected hotel in District 1, Quezon City. Frequency distribution, percentage, weighted mean, and t-test were used to analyze the data and assess the reported relationship between inflation and customer spending patterns. Most respondents were young adults aged 18–25, were single, and earned between ₱15,000 and ₱24,000 per month. Respondents reported that inflation was associated with reduced booking frequency, preferences for more affordable options, lower spending on hotel add-ons, and greater price sensitivity. Rising food prices, transportation costs, and room rates were identified as major considerations in purchasing decisions. The findings suggest that customers became more cautious and selective in hotel-related spending during periods of inflation. The study concluded that inflation was significantly related to customer spending behavior in the hospitality setting examined. The findings may help hospitality businesses, policymakers, and researchers understand consumers’ economic constraints and develop approaches intended to sustain customer satisfaction and industry stability during periods of price increases.

Keywords

hospitality industry, inflation, price sensitivity, customer spending behavior, hotel guests