PriceBench: A Diagnostic Benchmark for Price, Quality, and Brand Preferences in LLM Booking Agents
Organizations: Department of Management London School of Economics and Political Science
Abstract
LLMs increasingly act as purchasing agents, which makes the LLM, not the user, the one choosing among the options that satisfy a request; its preferences quietly fix what gets bought and what it costs. Hotel booking is a clean instance: a high-volume choice settled on a few comparable attributes, where the pick reveals those preferences. We introduce PriceBench, a diagnostic benchmark that recovers an LLM's price, quality, and brand preferences from its booking choices with a logit choice model, applied to 28 LLMs from 8 providers on 3,600 hotel tasks from 179 real New York City properties. We find that capability is associated with how consistently an LLM chooses, not with what it chooses: more capable LLMs hold stronger, more consistent preferences, while weaker ones either lock onto one position, exploitable by whoever controls listing order, or choose almost indifferently. What those preferences favor varies sharply across providers and even within one family: price sensitivity spans more than an order of magnitude, and the price/quality trade-off moves mean booked nightly price from $247 to $393 on identical tasks. What an agent buys must therefore be measured per LLM, not inferred, and we release the tasks, code, and all 28 response sets.
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Appendix
| Specification | Wyndham | All-5 pos. | Perm. |
|---|---|---|---|
| Baseline | 11/23 | 0.48 | |
| Drop top-leverage listing | 12/23 | 0.47 | |
| Area controls | 7/23 | 0.42 | |
| Luxury-tier indicator | 11/23 | 0.63 |
| LLM | Variant | (SE) | (SE) | WTP (SE) | pseudo- |
|---|---|---|---|---|---|
| Qwen3 4B | baseline | (0.14) | (0.11) | 128 (20) | 0.129 |
| JSON | (0.11) | (0.09) | 203 (84) | 0.013 | |
| reorder | (0.14) | (0.11) | 134 (22) | 0.141 | |
| persona | (0.14) | (0.11) | 150 (20) | 0.176 | |
| CoT | (0.16) | (0.12) | 56 (15) | 0.296 | |
| Gemma2 9B | baseline | (0.30) | (0.16) | 70 (8) | 0.516 |
| LLM | Role | First ( ) | First ( ) | at 0.7 (SE) | at 0 | pseudo- (0.7 / 0) |
| Llama3.2 1B | locked | 100.0% | 99.3% | (0.08) | 0.001 / 0.000 | |
| Mistral 7B | locked | 99.5% | 98.9% | (0.08) | 0.001 / 0.000 | |
| Qwen3 0.6B | locked | 98.5% | 52.2% | (0.08) | 0.031 / 0.002 | |
| Llama3 8B | locked | 88.2% | 91.4% | (0.08) | 0.037 / 0.029 | |
| Llama3.1 8B | locked | 88.2% | 89.2% | (0.08) | 0.040 / 0.022 | |
| Gemma3 4B | engaged control | 66.2% | 58.9% | (0.12) | 0.280 / 0.216 |
| LLM | First-slot | Hit | Top-2 | Mean pred. rank | five-opt (SE) |
|---|---|---|---|---|---|
| Gemma2 9B | 10.2% | 52.2% | 84.2% | 1.67 | (0.25) |
| Qwen3 4B | 1.8% | 50.7% | 78.0% | 1.80 | (0.21) |
| Phi-4 Mini | 6.3% | 44.3% | 69.8% | 2.04 | (0.15) |
| Mistral-Nemo 12B | 55.5% | 46.7% | 67.7% | 2.12 | (0.18) |
| Llama3.1 8B | 61.2% | 42.3% | 66.2% | 2.12 | (0.17) |
| LLM | [95% CI] | WTP [95% CI] | Rank [CI] | Rank WTP [CI] |
|---|---|---|---|---|
| GPT-5.4 | [ , ] | 107 [94, 121] | 1 [1, 1] | 19 [18, 19] |
| Gemma2 9B | [ , ] | 68 [59, 78] | 2 [2, 3] | 20 [20, 20] |
| GPT-4.1 Mini | [ , ] | 119 [108, 131] | 3 [2, 3] | 18 [17, 19] |
| Claude Haiku 4.5 | [ , ] | 139 [122, 157] | 4 [4, 6] | 16 [16, 17] |
| GPT-5.4 Mini | [ , ] | 222 [203, 246] | 5 [4, 6] | 12 [11, 14] |
| Gemma3 27B | [ , ] | 210 [191, 233] | 6 [4, 6] | 13 [12, 15] |
| Study | Setting and construct | Conversion | Per point at $250 |
|---|---|---|---|
| Anderson (2012) (research-center report) | Travelocity purchase logit; price change holding purchase probability constant | 11.2% per 5-pt point 2 = 5.6% | $14.00 |
| Anderson (2012) , same report | GRI-to-ADR equilibrium regression | 0.89% per 1% of GRI 10 = 8.9% (upper bound) | up to $22.25 |
| Lewis and Zervas (2016) (working paper) | Five-state hotel panel; price regression, hotel fixed effects | 1.5% (pooled) to 9% (2014) per 5-pt point 2 | 11.25 |
| Ursu (2018) | Expedia, randomized ranking; sequential search model | review coefficient negative or insignificant, all four destinations | $0 |
| Ghose et al. (2012) | Travelocity transactions; random-coefficients logit, log price | ratio of review-rating to log-price coefficients (our derivation; the conversion equation of Ghose et al., 2014 independently corroborates the ratio, 0.237 against 0.228) | 33 per platform; $61 summed |
| Chen and Yao (2017) | US OTA clickstream; dollar-denominated utility | entire above-4.5 versus below-4 band worth $99.11 per night | $99 (band, not point) |
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