The effects of customer voice on hotel performance

This paper investigates the effects of two critical customer voice variables on hotel performance. Specifically, the research provides a customer equity model in which the influences of both customer satisfaction and complaints are considered. The impact of the customer voice variables on hotel performance is investigated while considering the potential for moderating effects by hotel size and star rating. We use a more robust approach to measure firm performance than is traditionally used in satisfaction-performance studies. Finally the paper reports on the results of these investigations and outlines implications for both theory and practice.     

Accounting for customer satisfaction in measuring hotel efficiency: Evidence from the US hotel industry

Customer satisfaction, though an important output, is often ignored in hotel efficiency studies. Our study provides empirical evidence that excluding customer satisfaction may lead to significant difference in the mean and ranking of hotel efficiency scores. We derive our hotel efficiency scores using the distance stochastic frontier method based on a balanced sample of leading hotel chains in the US. We present and compare the efficiency results from two models, one that includes customer satisfaction and one that excludes customer satisfaction. The study discusses the difference in efficiency scores between the models. It also elaborates on the efficiency scores of some individual hotel chains and provides directions for future research.     

Corporate social responsibility (CSR) and customer loyalty in the hotel industry: A cross-country study

The study examines the role of customer perceptions of CSR in improving customer loyalty by exploring its direct and mediated effects through service quality, customer satisfaction, corporate image and corporate reputation in a cross-country setting. Data from Pakistan, China, and Italy was collected through surveys to explore customers’ hotel experiences. The hypotheses were tested with SmartPLS-3. Findings for the overall sample revealed that CSR affected customer loyalty positively and significantly. Nonetheless, this relationship was insignificant in the samples from Pakistan and Italy, while it was found to be only partially significant in China. The findings also revealed a direct, positive and significant impact of CSR on service quality, customer satisfaction, corporate image and corporate reputation. The direct relationships among all these variables were also significant across samples. Customer satisfaction and corporate image were identified as significant mediators of the CSR-loyalty link, but service quality and corporate reputation were found insignificant.     

Antecedents and consequences of hotel customers’ psychological ownership

This study aims to broaden the current knowledge on the antecedents and consequences of customers’ psychological ownership (CPO) from new perspectives in the hotel context. Specifically, this study investigates how self-image congruity and functional congruity affect CPO through impression in memory based on self-congruity theory and also examines two types of customer engagement—customers’ social influence engagement and knowledge-sharing engagement—as new CPO outcomes. Using survey data collected from 433 Chinese hotel customers, this study finds that self-image congruity positively predicts CPO partially through impression in memory, whereas functional congruity positively influences CPO fully through impression in memory. Moreover, the findings indicate that CPO significantly drives customers’ social influence engagement and knowledge-sharing engagement. This study contributes theoretically to the CPO literature by further developing its linkages with congruity perceptions and customer engagement. Practical implications of the findings can help hotel managers effectively promote CPO and customer engagement.     

Investigating emotional commitment towards a region and a hotel brand

This study examines emotional commitment, brand identification and place attachment’s role in hotel brand loyalty and subsequent behavioral intentions. Data for the study stemmed from 823 quantitative and qualitative responses to an online questionnaire by Finnish customers of a Finnish hotel chain. K-Means cluster analysis identified three customer commitment levels, which along with qualitative comments enhance understanding emotional commitment and its role in hotel brand loyalty. A specific place, Lapland, in the hotel’s brand name helps extend place attachment and introduce the concept of brand identification with Lapland’s geographic region. The customer cluster most emotionally committed to the hotel brand also reported the strongest commitment to the Lapland region.     

Organizational injustice and emotional labor of hotel front-line employees

Using equity and appraisal theories to integrate four dimensions of organizational justice and emotional labor, this study examines effects of organizational injustice and emotional labor. Perceptions of front-line hotel employees of customer injustice (interpersonal and informational), procedural and distributive injustice and their perceived effect on employees’ emotional labor and subsequent job satisfaction were examined. Our finding suggests the distributive injustice had an effect on hotel employees’ emotional labor, while effects of informational and procedural injustice on emotional labor were moderated by gender.     

The signaling and reputational effects of customer ratings on hotel revenues: Evidence from TripAdvisor

This study aims to examine whether customer ratings and online reviews affect hotel revenues, and if so, to quantify the effects. To achieve this objective, we articulate the mechanisms grounded on reputation theories whereby customer ratings exercise the influence on hotel performance through reputational and signaling effects. Using customer rating data from TripAdvisor and hotel revenue data from Texas, we estimate fixed effects regressions and adopt a regression discontinuity design to separate the signaling effect of customer ratings from reputational effect. We found that the signaling effect of a 1-star increase is an increase of 2.2–3.0% in hotel monthly revenues whereas the reputational effect of a 1-star increase is an increase of around 1.5–2.3% in hotel monthly revenues. Our findings are robust across alternative model specifications and provide insightful implications for hotels to manage their customer ratings.     

The impact of guest mix on hotel staffing

This article examines the influence of guest mix (independent versus group travellers) on the level of labour input per occupied room. Using time-series data for a major hotel in Hawaii, one of the key findings is that an increase in FIT guest has a negative impact on the hotel's staffing ratio. This result confirms the conclusion of an earlier study done by the author, and the analysis as a whole provides useful implications for hotel management's decision-making process.     

The role of loyalty programs in boosting hotel guest loyalty: Impact of switching barriers

This study examines the relationships among the perceived value of a loyalty program, customer satisfaction with a loyalty program, affective commitment, switching barriers, and customer brand loyalty in the hotel context. An online survey method with a quantitative approach was used. Our results from a structural equation model revealed that the perceived value of a loyalty program is essential in the formation of customer brand loyalty. Lastly, findings from an indirect analysis showed that affective commitment and switching barriers mediated the relationship between the perceived value of a loyalty program and customer brand loyalty. Overall, our research will help researchers and practitioners demonstrate to the industry that the loyalty program is a crucial strategy for customer loyalty and helps develop competitive loyalty programs for success.     

Mediating effects of attitude,subjective norms and perceived behavioural control for mobile payment-based hotel reservations

The impacts of website functionality and usability on the repurchase intention of consumers have been proven by previous literature. However, these impacts, along with the wide adoption of mobile payment for hotel reservations, remain unclear. Hence, this study integrates the conceptual model of website evaluation into theory of planned behaviour (TPB) to examine theimpacts of functionality and usability towards mobile payment on the repurchase intention of consumers within a Chinese context by mainly testing the mediating effects of attitude, subjective norms and perceived behaviour control. Based on a quantitative research design, findings revealed that mediating effects exist between mobile usability and customer satisfaction. Furthermore, the mediating effect of customer satisfaction are identified within the context of mobile payment for hotel reservations. Practical implications and ideas for further research are discussed.     

Customer accounting and marketing performance measures in the hotel industry: Evidence from Australia

Increasingly competitive environments have focused hotel managers’ attention on gaining competitive advantage by maximising the potential of their customer base. This paper provides the results of a study of the use and antecedents of customer accounting and marketing performance measures in the Australian hotel industry. The findings of a survey of 165 Australian hotel managers provide evidence that large, highly market orientated hotels with a decentralised structure use more customer focused accounting and marketing practices. Additionally, support was also found for a significant positive relationship between market orientation and a prospector-type strategy, as well as market orientation and both financial and non-financial performance.     

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.     

Exploring asymmetric effects of attribute performance on customer satisfaction in the hotel industry

Understanding the asymmetric effects of attribute performance (AP) on customer satisfaction (CS) is important for the managers in the hotel industry. Although several studies concerning this issue have been conducted, the varies of asymmetric effects across different market segments have not been revealed. To this end, this study aims to explore the asymmetric effects of AP on CS with respect to different market segments, including different types of hotels, different types of travelers and travelers from different regions. Four theories, i.e., expectation-disconfirmation paradigm, three-factor theory of CS, customer delight theory and prospect theory, are adopted to explain the formation of CS from the perspective of different market segments. The penalty–reward contrast analysis (PRCA) and asymmetric impact-performance analysis (AIPA) are used to analyze 1,547,869 user-generated ratings collected form TripAdvisor posted by the travelers from 140 countries concerning 9,596 hotels from 75 capital cities around the world. The results suggest that the asymmetric effects of AP on CS may vary across different market segments, including different types of hotels, different types of travelers and travelers from different regions. In addition, the priorities of hotel attributes for each type of hotel with respect to different types of travelers and travelers from different regions are also analyzed by AIPA. The obtained results will be valuable for researchers to conduct further studies and hotel managers to formulate improvement strategies.     

The impact of hotel CSR for strategic philanthropy on booking behavior and hotel performance during the COVID-19 pandemic

During the novel coronavirus (COVID-19) pandemic, some hotels have engaged in corporate social responsibility (CSR) activities to help overcome the crisis. Given that most existing research examines the impact of hotel CSR on a single stakeholder, how hotel CSR activities in a crisis are perceived by multiple stakeholders is unknown. Drawing on the concept of strategic philanthropy, this study examines the impact of hotel CSR activities during the pandemic, such as providing accommodations to healthcare workers, on hotel firms' market value and prospective hotel customers’ booking behavior. Adopting mixed-methods approach, this study finds negative impacts of hotel CSR for strategic philanthropy on firm market value and customer booking behavior. The study result indicates that the value of hotel CSR depends on the nature and environmental contexts of CSR. Specific theoretical and practical implications are provided.     

Analysing behavioural differences between e- and m-bookers in hotel booking

This study analysed the behavioural differences between e- and m-bookers in online hotel booking. The theoretical relationships among functionality and usability, perceived value for money and time, and satisfaction and loyalty were analysed based on the quality–satisfaction–loyalty framework. Results from a sample of 431 and 401 e- and m-bookers, respectively, affirmed the similarities and differences between the two types of bookers. Results also showed that e- and m-bookers substantially differ in their perceptions on functionality and usability performance, perceived value for money and relative importance of functionality and usability in online hotel booking. Moreover, the findings revealed the moderating effects of perceived value for money and time on the satisfaction–loyalty link among m-bookers.     

Switching intention model development: Role of service performances,customer satisfaction,and switching barriers in the hotel industry

The intricate relationships among core service and service encounter performances, customer satisfaction, and switching barriers in the formation of satisfaction and switching intention were examined in this study. A field survey was conducted at upper-midscale hotels. The results of the structural analysis revealed that both core service and service encounter performances significantly affected customer satisfaction, and satisfaction completely mediated the effects of service performances on switching intention. In addition, findings from the tests for metric invariances indicated that components of switching barriers (switching costs, relational investment, and lack of alternatives’ attractiveness) moderated the relationships between satisfaction and switching intention. In particular, the role of satisfaction derived from service performances in decreasing hotel guests’ intention to switch is greater when they perceive high switching costs, relational investment, and lack of alternatives’ attractiveness. Based on study findings, theoretical and practical implications are identified and discussed.     

Investigating the whole picture: Comparing the effects of Airbnb supply and hotel supply on hotel performance across the United States

This study examines and compares the extent to which Airbnb and hotel supply affect key hotel performance measures in the United States. The results show that although both Airbnb and hotel supply adversely affect hotel revenues (i.e., RevPAR), the magnitude of the impact of hotel supply on RevPAR is much larger than that of Airbnb. Airbnb adversely affects hotel room prices (i.e., ADR), however; it does not affect occupancy rates (i.e., OCC). Yet, increasing hotel supply negatively affects OCC but not ADR. The results from the state-level analyses further showed that the negative effects of Airbnb and hotel supply on RevPAR, ADR and OCC persist only in states with high hotel supply. Analyzing the joint effects of Airbnb and hotel supply on hotel performance in a manner that is both geographically-comprehensive and spatially-meaningful, this study provides a more complete and nuanced understanding on the economic dynamics of the accommodation industry.     

Consequences of Customer Dissatisfaction in Upscale and Budget Hotels: Focusing on Dissatisfied Customers’ Attitude Toward a Hotel

It is important to understand customer dissatisfaction in order to maintain a sustainable business, given that the negative effects of customer dissatisfaction in service businesses may be even greater than the positive effects of satisfaction. This study investigates customer dissatisfaction and its consequences by focusing on the mediating role of attitude toward a hotel according to different hotel classes related to customer expectation level. The results show a mediating role for attitude in the relationship between customer dissatisfaction and specific negative behavioral intentions. This study broadens our knowledge of customer dissatisfaction and the role of attitude toward a hotel in the relevant literature. The empirical findings demonstrate that regardless of hotel type, customer dissatisfaction significantly affects their attitude and their consequent negative behavioral intention.     

Service climate and customer satisfaction in a casino hotel: An exploratory case study

Given the global escalation in gaming availability, this paper proposes a service management framework for the study of competitive advantage in casino hotels. Using data collected from 303 employees at an Australian casino hotel, an exploratory case study in service climate and customer satisfaction is presented. The findings suggest that while service climate is highly correlated with customer satisfaction, internal dynamics result in significant differences in the perceptions of casino employees versus non-casino employees, highlighting the need to tailor organisational strategies to different types of employees.