Algarve hotel price determinants: A hedonic pricing model

This study sought to assess customers' willingness to pay for a wide variety of characteristics and attributes of hotels in Portugal's Algarve region. After collecting nearly all the information available on TripAdvisor for hotels in this region, a hedonic pricing model was developed using a database of 9992 cases. The results suggest that – after standardisation – the most important variable shaping Algarve hotel room rates is the previous day's prices. When associated with a family-friendly hotel, star category and services have a greater value than beaches or golf courses do. Customers also appreciate some types of hotels, such as boutique, quaint or trendy hotels, but view others negatively, such as family-friendly or business hotels. Only the specific location of Falesia Beach adds value, although the Algarve is a desirable destination overall. Both destination and hotel managers can use the proposed method to analyse data for their region on customers' propensity to pay.     

Modeling a green supply chain in the hotel industry: An evolutionary game theory approach

Despite extensive discussion of environmental management for hotels, little research has been done on the hotel industry’s green supply chain management. This study uses the evolutionary game approach to examine the generation of green behaviors and a green supply chain by hotels. Results show that most hotels do have an incentive mechanism for green growth; hotels with green behaviors are more profitable than those that are not. Furthermore, governments and hotel customers are critical in the “greening” of traditional hotel supply chains. The findings can assist governments in formulating effective environmental policies, provide a theoretical avenue in governing green practice, and guide stakeholders to understand the formation and evolution of green development in the hotel industry.     

Managing green marketing: Hong Kong hotel managers’ perspective

In view of the serious environmental problems we are currently facing, taking action to protect our planet is becoming more persuasive and important. Along with various environmental initiatives, the concept of green marketing emerged in the late 1980s. Some hotels have taken various initiatives to position themselves as green hotels, including the use of eco-labels as a marketing ploy to attract customers. Nevertheless, some of the hotels that use these green marketing strategies have been accused of “green washing”. The main aim of this study is to investigate Hong Kong hotel manager perceptions of the relative importance of different green marketing strategies. Questionnaires containing 30 attributes were distributed to this effect. The findings reveal that hotel managers equally perceive “Hotel green marketing should begin with green product and service design”, “Hotels provide products and services that do no harm to human health” and “The Internet is an effective channel to market a hotel's green initiatives to customers directly” as the top green marketing ploys. Independent t-tests and one-way ANOVA were also used to examine significant differences in the way hotel managers with different professional backgrounds and individual demographic characteristics rate the importance of hotel-related green marketing strategies. The findings indicate that lower-grade hotels tend to adopt lean green marketing strategies, whereas hotels with larger sizes or formal environmental management systems are likely to adopt shaded or extreme green marketing strategies. The study also provides a number of insights to help hotel managers and especially marketers better understand the implementation and importance of different green marketing strategies, thereby allowing them to employ suitable measures to avoid the “green washing” designation and attract more green-conscious travellers.     

Purpose of stay and willingness to stay as dimensions to identify and evaluate hotel experiences

The market of experiences promises business opportunities to service-based sectors. However, company managers miss procedures for strategic decision-making. This paper presents a practical procedure to help managers to move into the experience business in the hospitality sector. Sector experts participated in a session identifying hotel possible uses. 290 clients evaluated the promotional brochure of 18 hotels stating their intention to stay and perception of hotel adequacy to the uses experts proposed. A PCA identified five stay purposes: couple, collective, business, elderly and soloing. A logistic regression analysis showed that couple and collective have the highest positive influence in staying intention whereas elderly and business have the most negative influence. Experiences elicited by hotels were assessed as belonging to a series of clusters defined by “will to stay” and stay purposes. Results allow managers to better understand consumer's experiences and to manage their offerings into the experience market.     

Business Travelers’ Accommodation Selection: A Comparative Study of Two International Hotels in Cairo

The purpose of the present study was twofold. First, it aimed to determine what business travelers in two international hotels in Cairo, Egypt, the first being 5 stars and the second 4 stars, believed were the factors influencing hotel selection and their importance. Second, this work aimed to ascertain the extent of congruence between business guests on attributes that feature in hotel selection. Results showed that business travelers at the 5-star hotel assigned top importance to the attribute “accuracy of wake-up call”, whereas their counterparts at the 4-star hotel identified “security and safety of room” as their most important factor in hotel selection. The independent samples t-test identified statistical significant differences on 50 attributes between both sets of respondents. The eta-squared value was calculated to examine the magnitude of such differences. Despite the difference in hotel star rating, research findings did not reveal a large statistical difference on all attributes. However, a large statistical difference was discovered between respondents on 21 attributes; a moderate difference on 25 attributes and; a small difference on 4 attributes. The results of this study could equip accommodation managers with a better insight into the actual needs of business guests, the issue that could lead to their satisfaction and improve customer service.     

Emerging Definitions of Boutique and Lifestyle Hotels: A Delphi Study

Despite growing interest in the boutique and lifestyle sector of the lodging industry, there is not an accepted definition of either “boutique hotel” or “lifestyle hotel.” Boutique and lifestyle hotel strategies provide hotel companies with important points of differentiation in an increasingly competitive marketplace. The current study determined definitions using a Delphi analysis of responses from a diverse group of experts from the lodging industry. Forty-one panel members were involved in the process that was undertaken with three rounds of questions. The study determined that boutique hotels are best characterized as small, stylish hotels that offer high levels of service. Lifestyle hotels are described as innovative and provide more of a personal experience than so-called “branded” hotels.     

How managerial ties affect hotels’ proactive environmental practices in China: The contingent role of institutional environments

Despite the increasing attention of environmental management in the hotel industry, few studies have examined how managerial ties impact hotels’ adoption of proactive environmental practices (PEPs) in China. Drawing on institutional theory, this study develops a model that investigates the differential effects of political ties and business ties on PEPs in the presence of important institutional factors. Using a primary survey and multiple secondary datasets on 190 Chinese hotels, we find that political ties inhibit a hotel’s adoption of PEPs whereas business ties facilitate PEPs. Moreover, advanced legal development and high levels of regional pollution reduce the impacts of both political ties and business ties on PEPs. We also test the relationship between PEPs and hotels’ financial performance. These findings provide novel insights into how managerial ties shape a hotel’s strategic behaviors for environmental protection under the influence of institutional environments in emerging economies.     

The Evaluation of Hotel Website Functionality by Fuzzy Analytic Hierarchy Process

Although previous studies have identified different factors on hotel website functionality evaluation, the evaluation of the relative importance of these factors has not been empirically determined. This study adopted a sophisticated approach that analyzes the weights of hotel website functionality. This approach involved triangular fuzzy numbers and an analytic hierarchy process to develop a fuzzy analytic hierarchy process (AHP) model which prioritizes the relative importance of hotel website functionality criteria. First, 20 criteria for hotel website functionality evaluation were developed from a literature review and three focus group interviews. After that, a fuzzy AHP approach was used to examine the relative importance of the criteria and sub-criteria of hotel website functionality evaluation. As human judgments are often uncertain and vague, the use of fuzzy set theory, rather than exact numbers, enables us to capture decision-makers' uncertainty. Finally, the results indicated that “Reservation Information” is the most important criterion to hotel website functionality.     

The influence of uncertain demand on hotel capacity

We examine the effects of uncertain demand on hotel capacity using the operation data of international tourist hotels in Taiwan from 1996 to 2008. Abel (1983) argued that demand uncertainty leads to an increase in the capacity of a firm if uncertain demand takes the form of output price uncertainty for the competitive market. We empirically test Abel's model. Our findings support the demand uncertainty hypothesis in Abel's model. Moreover, our results indicate that effective management of hotel capacities is a more important issue for managers of medium-sized hotels than for small or large-sized hotels in the Taiwanese hotel industry.     

How do hotels adapt their pricing strategies to macroeconomic factors?

The hospitality industry is naturally highly sensitive to subtle changes in the external environment, and its performance is affected by various external factors. Therefore, hoteliers should carefully monitor the various macroeconomic indicators affecting the market, when making important strategic management decisions. In particular, hotels’ pricing decisions are important because they play a crucial role in the determination of hotel revenue and in the process of profit maximization. In this paper we classify hotels by business model (i.e., chain management, franchise and independent) and analyze how these different types of hotels in Switzerland adapt their pricing strategies to macroeconomic factors (i.e., exchange rate, room supply and market demand). We find that hotels adopting different business models react differently to the same macro shock. Implications of our findings and future research directions are discussed.     

Role of Perceived Fit With Hotels’ Green Practices in the Formation of Customer Loyalty: Impact of Environmental Concerns

With the increasing concern for ecological issues among hotel customers, this study pursues an investigation of customers' perceptions of hotels' core business in association with green practices and the resulting purchase-related loyalty (i.e. intentions to visit, accept price premiums, and recommend). In addition, the study examines the moderating role of environmental concerns in the relationships among perceptions of hotels' green practices and loyalty components. A survey of tourists using hotels showed that customers related hotels' core businesses and green practices positively, which consequently affected customers' purchase intentions toward the hotels. This study is unique in academia in that it investigates the fit theory for the hospitality industry by considering the impact of environmental concerns, while employing environmental practices as an emerging social cause, which is, increasingly, important for the society. This study is beneficial by providing hotel managers with insight into hotel customers' decision-making processes regarding green practices.     

Hotel restaurants’ challenges and critical success factors in Klang Valley,Malaysia: the inseparable roles of support centers and revenue streams

Hotel restaurants are of great importance in hotels, and the factors for this have so far been considerably understudied. This study investigated the challenges and critical success factors (CSFs) of restaurants owned and operated by five-star luxury hotels in Klang Valley, Malaysia. Four exemplar hotels were studied and 10 respondents responsible for hotel restaurants’ planning and operations were sampled in this multiple case study approach. A total of 13 challenges were identified, and thematic analysis found 10 common CSFs crucial to hotel restaurants. Among the 10 CSFs, 2 distinctive CSFs were identified playing exceptional roles, including: (1) the inseparable linkage between hotel restaurants and support centers, as well as (2) the inseparable linkage between hotel restaurants and revenue streams. Moreover, this study broadened the retrospective understanding of the term “inseparability” in service organizations, and also contributed several implications for hotel restaurant managers to incorporate into their businesses.     

International franchising: Opportunities for China's state-owned hotels?

The hotel industry in China faces global competition. Most of the state-owned hotels have struggled during the period of transition from a planned economy to a market economy. Furthermore, international franchising hotel chains have entered China with their different operation modes. Could the franchising hotels bring opportunities for state-owned hotels? In an attempt to answer this question, the researchers carried out a study of state-owned independent hotels and state-owned franchised hotels to analyze their external and internal business factors, their intentions to join international franchise operations and the international hotel franchisors in China. The research technique used was qualitative. Two rounds of in-depth interviews were conducted. Content analysis was used in the data analysis. Results indicate that the majority of state-owned independent hotels have intentions to join an international franchise operation in the next 5 years. It also identified major factors affecting the franchising of state-owned hotels in China. However, franchising may not be attractive to those hotels that want to keep their management culture and characteristics. Implications of the study were discussed. Recommendations were provided to the state-owned hotels. Future research studies have been suggested to examine the relationships between franchisors and franchisees.     

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.     

Predicting Hotel Choice Decisions and Segmenting Hotel Consumers: A Comparative Assessment of a Recent Consumer Based Approach

Abstract

Given the intensified competition to attract today's increasingly discerning hotel guests, it is vital for hotel managers to understand the set or bundle of hotel attributes which are demanded by the potential traveler. Unfortunately, marketing research in hotels is still mainly confined to the analysis of guest-related data collected during registration or from guest comment cards. These data, however, have little merit as predictors of customer behaviour and cannot answer the “what if” questions. In recent and past research in hospitality and tourism, researchers have demonstrated the use of product attributes in predicting consumer preferences and segmenting markets (Bell and Morey 1997; Kim 1996). In undertaking this approach to behavioral study, many researchers in the field have been attracted to use conjoint attribute part-worths, (the judgmentally quantified attribute valuesderived from conjoint modeling. This study attempts to utilize the compositional self-explication model as a reference model to assess the comparative superiority of the conjoint model in predicting client preferences among travelers to Hong Kong. It also seeks to reveal subgroup preference variations by using two segmentation approaches. The overall finding indicated that the most important hotel attribute sought by all respondents is Room Rate, followed by Star Rating, Location, Brand and Room Type. In terms of market segments, the results revealed similar preference profiles among leisure, short-haul and infrequent travelers as one group and business, long-haul and frequent travelers as another.     

The relationship between CRM, RM, and business performance: A study of the hotel industry in Taiwan

This study aims to investigate the implementation of customer relationship management (CRM) and its effect on relationship marketing (RM) and business performance, through an analysis of the hotel industry in Taiwan. A survey on hotels, including general and tourist hotels, and bed and breakfasts (B&Bs) was conducted, and a total of 560 questionnaires were returned. The results showed that implementing CRM has a significant and positive influence on the RM effect, positively affecting business performance for both hotels and B&Bs. However, a comparison of the influential paths of relationship models between hotels and B&Bs showed that, for hotels, the Internet service and customer support functions of the CRM strategy are the main sources of influence on the RM effect and business performance, whereas for B&Bs, the marketing support function of the CRM strategy alone influences the RM effect and business performance. To achieve higher performance, the different types of hotel enterprises should understand their main advantage before implementing key CRM strategies.     

The Implementation of Saudization in the Hotel Industry

Saudi Arabia's localization policy, “Saudization,” aims to decrease reliance on expatriate workers, but it has been more successful in the public sector than in the private sector. This study explores the issues involved in effectively implementing the policy in the hotel industry in Saudi Arabia, specifically four- and five-star hotels. Tourism professionals, HR professionals, and hotel managers were interviewed and hotel managers and employees surveyed. The research specifies criteria for the effective implementation of Saudization and identifies the issues involved in implementing this policy in four- and five-star hotels. It makes recommendations, which could assist in implementing the policy effectively in the hotel industry.     

The Influence of Service Quality on the Positioning of Five Star Hotels—The Case of the Lisbon Area

Abstract

Tourism in Portugal has expanded very rapidly over the last decades. At present, it accounts for about 8% of the GDP and directly employs more than 300,000 people. The growing numbers of arrivals in Portugal have also led to a rapid expansion of the hotel industry. However, this expansion has been followed by some worrying drops in the occupancy rates of five star hotels. Fierce competition has then become one of the cornerstones of the Portuguese hotel industry. Research conducted in the field of market positioning has highlighted the importance of understanding the preferences attributed by consumers to a given product (“perception”) and how and why products and services are evaluated and purchased. Based on research conducted recently among tour operators and business companies, this paper will look at the way in which service quality influences the positioning of five star hotels. The analysis and conclusions presented in the paper offer grounds for discussion about the way in which five star hotels located in the Portuguese capital and in the surrounding area may improve their image, attract larger numbers of tourists and, as a result of this, prepare themselves for growing competition that has developed in Lisbon and its outskirts. Some of the findings are applicable to other European capitals.     

Big data for big insights: Investigating language-specific drivers of hotel satisfaction with 412,784 user-generated reviews

This study leveraged the advantages of user-generated reviews with the aim of offering new insights into the determinants of hotel customer satisfaction by discriminating among customers by language group. From a collection of 412,784 user-generated reviews on TripAdvisor for 10,149 hotels from five Chinese cities, we found that foreign tourists, who speak diverse languages (English, German, French, Italian, Portuguese, Spanish, Japanese, and Russian), differ substantially in terms of their emphasis on the roles of various hotel attributes (“Rooms,” “Location,” “Cleanliness,” “Service,” and “Value”) in forming their overall satisfaction rating for hotels. Chinese tourists domestically exhibit distinct preferences for room-related hotel attributes when compared to foreign tourists. Major interaction effects are revealed between the attributes “Rooms” and “Service” and between “Value” and “Service”.     

Market accessibility and hotel prices in the Caribbean: The moderating effect of quality-signaling factors

The purpose of the paper is to investigate the influence of market accessibility on hotel prices and how this influence is moderated by various quality-signaling factors, such as online user ratings, “thumbs up” (recommendation) percentage, hotel class, and chain affiliation. Using a randomized sample of hotels in the Caribbean islands, we employ a three-level mixed-effect linear regression model to investigate the plausible relationship between market accessibility and hotel prices. After controlling for unobserved island-level and hotel-level characteristics, the model indicates that in most periods, low market accessibility (high flight costs) leads to lower hotel prices, and this influence is mitigated by well-established positive reputations as represented by the quality-signaling factors. Our findings imply that hotels should work to increase their reputations to help buffer the impacts of inaccessibility. In an effort to increase market accessibility, one course of action is to reduce airport landing taxes and fees.