Hotel property performance: The role of strategic management accounting

In the current study, we contend that to enhance their competitiveness and performance, hotel properties need to develop and implement internal policies and procedures such as strategic management accounting that are consistent with their business strategies and account for changing competitive demands. We employ a sample composed of 80 hotel properties to investigate the key precursor of hotel property strategic management accounting use and its impact on hotel property customer and financial performance. The results highlight that market orientation business strategy is a key determinant of hotel property strategic management accounting use and illuminate the mediating influence of hotel property strategic management accounting use and hotel property customer performance on the relationship between hotel property market orientation business strategy use and hotel property financial performance. Recommendations are provided for both researchers and hotel managers concerning their future study of, or use of, strategic management accounting.     

Becoming an ambidextrous hotel: The role of customer orientation

Because competitive pressure in the hotel industry continues to increase, hotels have to develop service innovation (i.e., exploration) and service improvement (i.e., exploitation) capacities to become ambidextrous for continually creating customer value. In this study, a theory of the effect of customer orientation on service innovation and service improvement, which facilitates service quality and results in better market performance, was developed and investigated. By analyzing the data provided by senior executives and department managers from 126 hotels in Taiwan, both service innovation and service improvement were revealed to partially mediate the relationship between customer orientation and market performance. The results imply that customer orientation affects the market performance of a hotel through the development of service capabilities, and that customer orientation can transform a hotel into an ambidextrous hotel by concurrently developing service innovation and service improvement capacities.     

Key drivers of innovation capability in hotels: implications on performance

Innovation capability is critical for the modernization and competitiveness of the hotel industry. This work analyzes the role of hotels' innovative culture, market orientation, and internal marketing as forerunners of innovation capability in hotels, as well as the effect of innovation capability on hotels' performance. The proposed conceptual model is evaluated through structural equation modeling using a sample of 256 Spanish hotels. The results reveal that innovative culture by itself is not a key driver of the hotels' innovation capability. However, internal marketing and market orientation mediate the innovative culture-innovation capability relationship. Innovation capability proves to enhance hotels' market results directly and indirectly through customer equity. Our findings offer hotel managers useful guidance to understand how innovation capability is built within the firm by combining the right organizational culture and practices. Additionally, our study reinforces the financial and non-financial benefits of innovation capability in hotels.     

Enhancing business performance of hotels: The role of innovation and customer orientation

Innovation management and customer orientation have been widely recognized as key factors in enhancing the business performance of hotels. Our research investigates the interplay between customer orientation, innovation, and business performance in the Alpine hospitality industry. The study contributes to current innovation research by jointly investigating hotel innovativeness and innovation behavior as two distinct dimensions of the innovation concept. Analyzing data from 203 hotel managers, this study shows that the effect of hotels’ customer orientation exceeds the effects of innovativeness and innovation behavior on financial and non financial business performance. Mediation analysis shows that innovation behavior partially mediates the effect of customer orientation on business performance. The results of the study provide hotel management with relevant insights into the customer orientation innovation performance chain.     

A hotel sustainability business model: evidence from Slovenia

This research explores and develops a hotel sustainability business model (HSBM) to study the sustainability orientation of the Slovenian hotel industry. Based on a comparative analysis of the existing sustainability and triple bottom line models, the usual content of a three-line HSBM (economic, environmental and sociocultural) was extended to include customer satisfaction, environmental education and power to implement changes. Financial, marketing and tourism sustainability experts investigated best practices in sustainability measurements and gathered appropriate sustainability indicators; expert opinion and the Delphi method refined and reduced an initial 79 indicators to 36 operational indicators, able to fulfil the HSBM's sub-categories within the extended triple bottom line. The HSBM's concept was used to study the sustainability of Slovenian hotel firms to reveal how important these indicators are for hotel managers and do they monitor them. Results indicated strong importance and measurement of economic and marketing indicators, such as profitability and customer satisfaction. Following the socialist tradition, companies recognise the importance of human resources, but the importance of environmental education and awareness building, biodiversity, and the establishment of partnerships with stakeholders to implement sustainable tourism development are neglected. Economic performance was, for example, monitored by 66% of respondents, environmental performance by 28% and social performance by 42%.     

Effect of customer orientation and entrepreneurial orientation on innovativeness: Evidence from the hotel industry in Switzerland

While researchers have explored the relationship between customer orientation, entrepreneurship and innovativeness with business performance in different organizations, few such studies exist on the hotel industry. This current work investigates the potential influences of these variables on hotel industry performance. Data for this study was collected through personal questionnaires collected from 156 hotel managers and owners from German and French speaking cantons located in Switzerland in order to examine the interrelation between innovativeness, customer orientation, entrepreneurship and service business performance dimensions (i.e., profit goal achievement, sales goal achievement and ROI achievement). The findings support aspects of prior research, but also provide some new insights by exploring customer orientation and innovativeness simultaneously and revealing how these factors impact upon the performance of the Swiss hotel industry. In the light of existing literature, limitations and future research directions are subsequently addressed.     

Market orientation in mid-range service,urban hotels: How to apply the MKTOR instrument

This work analyses market orientation (MO) within hotels and its impact on business performance (marketing, economic and financial results). To achieve this, after developing a measurement scale based on MKTOR, a survey targeting senior managers of four-star hotels located in Spain was carried out. The data of the study show that the more market-oriented hotels know their customers and competitors better and that they are more effective at coordinating their actions. This in turn generates a positive and direct effect on customer satisfaction, on the value added for them and on the perceived image of the hotel. Also, perceptions about technological turbulence positively affect the adoption of the MO philosophy and, therefore, its consequences in terms of company performance. Finally, the effects of MO on results would be overvalued if the perception of the impact of the crisis is not taken into account.     

Change or perish: Examining the role of human capital and dynamic marketing capabilities in the hospitality sector

Many researchers have endeavored to explain which factors contribute to sustainable competitive advantage. Toward this end, this study contributes to the marketing and hospitality management literature by providing empirical evidence on how human capital, dynamic marketing capabilities, and market dynamism influence competitive advantage in the hotel sector. We collected cross-sectional survey data from marketing and sales managers in 165 hotels, along with in-depth interviews in three hotels, based in four Gulf Cooperation Council (GCC) countries, namely, Saudi Arabia, Qatar, United Arab Emirates and Bahrain. The findings reveal that human capital directly, and indirectly through dynamic marketing capabilities, plays a critical role on developing competitive advantage. To contextualize this role, our research reveals that market dynamism moderates the mediated relationship between human capital and competitive advantage via market sensing capabilities. We discuss how the findings offer theoretical and managerial implications for the development of competitive advantage in the hotel sector.     

Antecedents and consequences of relationship quality in hotel industry

This study investigated the antecedents and consequences of relationship quality. This study will help hotel managers to develop and implement effective relationship marketing strategies. Effective usage of relationship marketing strategies will be able to improve hotel performance such as share of purchases, relationship continuity, and word of mouth. To analyze data collected from 12 five-star hotels in Seoul, the linear structural relationship (LISREL) model was used to identify structural characteristics of relationship management between service providers and guests. The empirical results of this study were threefold. First, greater service providers’ relational and customer orientation resulted in higher relationship quality. Second, better service providers’ attributes resulted in higher relationship quality. Third, higher relationship quality resulted in higher share of purchases and better relationship continuity and share of purchases.     

The managerial flash sales dash: Is there advantage or disadvantage at the finish line?

The central intent of this qualitative inquiry is to investigate the benefits, drawbacks, and performance measures of hotel room inventory distribution via flash sales websites. Key advantages and disadvantages of using such a distribution channel fall within the categories of inventory management, revenue management, brand marketing, customer relationships, and operational challenges. The significance of the study is in providing a comprehensive review of the flash sales phenomenon in the lodging industry that may assist hotel managers with the performance evaluation of this distribution channel. Using grounded theory methodology, a flash sales evaluation framework was developed based on 46 phone interviews with hotel managers from different segments of the American hotel industry.     

An analysis of the relationship between market orientation and business performance in the hotel industry

The purpose of this study was to conduct an investigation into the link between market orientation and business performance in the hotel industry. Data were generated from 63 hotels in Hong Kong. The findings indicated that market orientation is positively and significantly associated with the marketing performance and financial performance of a hotel. The implications of the findings are discussed and the limitations of the study as well as future research directions are addressed.     

Market Orientation,Strategy and Revenue Growth in the Turkish Hotel Industry

This empirical analysis of hotel properties in south-western Turkey draws on the market orientation, strategy, and capabilities literature to highlight the benefits of a differentiation strategy and customer-value focus for competitors in this industry. Relationship management and organizational resource management are key drivers of sales growth in this industry, and hotel operators facing high competitive intensity are particularly encouraged to develop these capabilities and to adopt a differentiation strategy instead of resorting to price cutting and other pricing and promotional tactics to grow revenues. Notable opportunities for future research include examining relationships between market orientation, customer satisfaction, and employee satisfaction in the Turkish hotel industry.     

Effects of psychological contract breach on attitudes and performance: The moderating role of competitive climate

The performance of hotel employees is an important driver of customer satisfaction, which in turn affects hotels’ financial outcomes. Hotel managers should encourage their staff to deliver quality service and should inspire them to perform their best. This study advances a multilevel model that draws connections among competitive climate, organizational identification (OID), job performance, affective commitment (AC), and psychological contract (PC) breach from a sample of hotel staff. The results indicate that (1) PC breach is negatively related to OID and AC, (2) OID and AC have a significant positive relationship with job performance, and (3) competitive climate at the organizational level moderates the effects of OID and AC on hotel workers’ in-role performance. These results offer valuable implications for managers to produce more efficient hotel human resource management techniques.     

Disentangling green service innovative behavior among hospitality employees: The role of customer green involvement

Regardless of the role of customers in co-creating value with organizations, how customer involvement drives employees, particularly in the hospitality industry, to engage in green service innovative endeavors has been scarcely examined. This study seeks to uncover how and when customer green involvement nurtures green service innovative behavior among hotel employees. The dataset was formed from the responses from 519 employees and 84 managers working in Vietnam-based hotels and analyzed via multilevel structural equation modeling. The results demonstrated the role of hotel employees’ green information management motivations (i.e., green information proactiveness, transparency, and formality) in mediating the positive relationship between customer green involvement and employee green service innovative behavior. Internal green marketing orientation functioned as an enhancer for the effects of customer green involvement on green information management motivations. This research contributes to the stream of green behavior research by bringing together customer green involvement and green service innovative behavior in the hospitality literature and unraveling the mechanisms behind their relationship.     

Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors

With the market competition of hotel industry being heated, it is critical that hotels have a breadth of resource and more flexible forms to meet the needs of a changing marketplace. In the past, the relation of total quality management (TQM), market orientation, and performance are equivocal. These mixed results may be due to some factors or not to include the environmental factors. This study adopts the Input-Processing-Output (IPO) concept model to construct all variables research model. The research surveyed samples of 588 and used Structural Equation Model and discriminate analysis for analysis and testing. The results show that TQM positively affects hotel performance. Market orientation positively affects hotel performance. Market orientation has the mediating effect between TQM and hotel performance. External environment factors truly play a moderator between TQM, market orientation and hotel performance, especially when external environment factors greater changes are going to help to build relationship with customer, to enhance hotel performance and further to gain chance of hotel's survival.     

Market Orientation and Performance Outcomes: An Empirical Study of Travel Agencies in Taiwan

This paper reports the results of a study that found evidence to support the importance of customer satisfaction and customer loyalty in the relationship between market orientation and financial performance. The performance of travel agencies in Taiwan was examined with data collected through a questionnaire survey completed by the managers of 292 travel agencies in Taiwan. Analysis using structural equation modelling revealed that market orientation influences the financial performance of travel agencies indirectly through customer satisfaction and customer loyalty. Neglecting customer satisfaction may negate any improvements in the level of performance that have been gained by adopting a market orientation. It was found that market orientation does not affect financial performance unless the two mediators, customer satisfaction and customer loyalty, are applied concurrently.     

The influence of service brand orientation on hotel employees’ attitude and behaviors in China

As foreign hotel brands continue to roll out their investment in China, the competitive landscape intensifies. Central to the success of these hotel brands is their ability to offer the unique features of their service offering, as reflected in the brand, in which employees play a key role. However, in the Chinese market, where the introduction of foreign hotel brands is in its initial stages, employee brand knowledge may be limited resulting in service behaviors that are inconsistent with the brand. Therefore, the adoption of a service brand orientation to guide employee attitudes and behavior is considered to be necessary. In an effort to realize productive service employees, this study examines the consequences of adopting a service brand orientation. Results suggest that a service brand orientation is imperative for positive employee brand-oriented behaviors as well as customer-oriented behaviors that are a consequence of an employee customer orientation.     

Determinants affecting comprehensive property-level hotel performance: The moderating role of hotel type

It is crucial for hotel managers to understand the main drivers of each property's financial performance. This study examines the key antecedents of both service-profit chain frameworks (customer and employee satisfaction) and strategic perspectives (size, customer mix) that influence a comprehensive hotel performance. The findings of this study show that customer satisfaction is a prominent driver of performance and that hotel size and customer mix also have significant effects on performance. This study also examines the moderating effects of hotel type on the following three determinants: customer satisfaction, hotel size, and customer mix and performance. The findings will offer useful insights to hotel chain firms and hotel investors who manage or own a portfolio of different hotel types.     

Understanding the dimensions of customer relationships in the hotel and restaurant industries

The purposes of this research were, first, to examine the dimensionality of hospitality customer relationships and, second, to develop a multi-dimensional customer relationship scale validated with both antecedent measures of marketing effectiveness and effect measures of financial performance. While hospitality marketing research has frequently focused on the relationships between various marketing actions and different dimensions of customer relationships, there is a lack of research examining customer relationships as a multi-dimensional construct. For both the hotel and restaurant industries, scale development procedures with confirmatory factor analyses were used to identify the dimensions of customer relationships: engagement, motivation, commitment, cross-buying, word of mouth, and defection. The nomological validity of these dimensions was tested using the antecedent of service quality and the effect of customer lifetime financial value. The paper concludes by articulating, first, the theoretical and practical applications of the proposed scale and, second, an agenda for future research.     

Creating competitive advantage: Linking perspectives of organization learning,innovation behavior and intellectual capital

Drawing on learning theories and the intellectual capital (IC) theory, organizational learning research has discussed the benefits of searching for market opportunities and maintaining a competitive advantage in dynamic environments. To explain organizational performance and survival, the previous literature has focused mainly on what organizations do, but it has failed to address how and what they should do. This study argues that if hotel management is open-minded about exploratory and exploitative learning, it can open the door to capturing opportunity and competitive advantage through increased innovation behavior and human capital accumulation. Further, IC theory has also confirmed that social capital and relational capital will strengthen the relationship between innovation behavior and human capital. This study analyzes data from 595 hotel managers and finds strong support for the proposed hypotheses.