Factors influencing location selection decisions for tourism budget accommodation: An empirical investigation of motels within New Zealand : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University

Abstract

Location selection of a business is a crucial decision-making element in the motel sector because a flawed decision can be very difficult or even impossible to rectify. There is a notable gap in the literature on location selection for the tourism accommodation sector with almost all work focusing on hotel location. While work within New Zealand is particularly rare, research on factors influencing motel location is virtually non-existent. This study explores factors influencing location selection and determines the importance of each of these factors to the motel owners. This study also analyses the nexus between theory and practice to develop a model for location selection specific to New Zealand. The study uses a qualitative lead mixed method approach. Data were collected using in-depth interviews with sector experts and face-to-face surveys with New Zealand motel owners. The study uses a combination of thematic analysis, the Analytic Hierarchy Process (AHP) of the multi-criteria decision making, and cluster analysis to examine the dimensions of motel location selection. The first phase of this study reviews the literature on tourist accommodation location selection and identifies a range of factors: financial, non-cash benefits, agglomeration, connectivity, location and visibility, the business environment and government policy factors. These factors are refined and contextualized using in-depth interviews with sector experts and thematic analysis. These factors are organized into criteria and sub-criteria and arranged in a hierarchy. The resultant hierarchy provides an initial framework for location selection in the New Zealand motel sector. The second phase of the study surveys motel owners/operators with experience in selecting a motel location and examines the factors influencing decision-making using the Analytical Hierarchy Process (AHP). The AHP result reveals some common patterns. Cluster analysis is used to explore underlying meaningful clusters of similar groups of respondents underpinning motel investment decisions. The cluster analysis identifies four clusters of owners: lifestyle, balanced lifestyle, location-based profit-centric, and pure profit-centric owners. The findings demonstrate significant discrepancies between the theory and practice of location selection for the New Zealand motel sector. The importance of factors varies from that reported in the global literature. The influence of factors varies among motel owners. The AHP findings reveal that financial criteria are the most influential for motel location selection followed by location and visibility, non-cash benefits, the business environment, agglomeration, connectivity and government policies. This study rigorously assesses the location selection process and develops a model to assist stakeholders in understanding the process. Although this study is the first of its kind, the model shows potential utility in the field of motel location selection. The study suggests further research on motel location selection to enhance the model