The impact of industry force factors on resource competitive strategies and hotel performance

This study integrates the Porter's five forces and resource-based approach measuring U.S. hotel performance. The results show that hotels with the advantage of low customer bargaining power and low threat of new hotel entrants exhibit the strong human resource and information technology (IT) strategies. In contrast, hotels with the advantage over existing competitors do not exhibit any significant competitiveness of brand image, human resource, and IT strategies. This dues to different hotels define competitors with various criteria such as proximity and price. Competitive human resource and IT strategies indicate the increase of hotel performance, while competitive brand image strategy has no influence on hotel performance. The competitiveness of brand image strategy may overlap with implementing human resource and IT strategies.     

Use numbers not words! Communicating hotels’ cleaning programs for COVID-19 from the brand perspective

After hotels in many countries were forced to close in government-imposed lockdowns during the COVID-19 pandemic, there is an inherent need to communicate how they deal with the coronavirus to motivate guests to visit. However, lack of knowledge about how to persuasively communicate about hotels’ cleaning programs for COVID-19 can challenge the industry’s survival. We investigated how hotels that position their brand as a particular personality (sincere vs. exciting) could benefit from different communication styles (inclusion of numerical vs. verbal quantifiers) when presenting their COVID-19 cleaning procedures. Study 1 explored tourists’ central attitudinal responses toward hotels’ cleaning programs. Study 2 demonstrated that sincere hotel brands would benefit from using numerical and verbal quantifiers to communicate their cleaning policies, whereas exciting hotel brands would benefit only from numerical quantifiers. Our results invite hotel managers to use their brand personality positioning to influence tourists’ attitudes and intentions in a pandemic context.     

Unraveling the dynamic and contingency mechanism between service experience and customer engagement with luxury hotel brands

This study unravels the dynamic and contingency mechanism between service experience and customer engagement with luxury hotel brands by investigating a multi-step model linking these two variables, in which emotional attachment and relational quality constructs (i.e., brand satisfaction, brand trust, and brand commitment) act as a bridge, while customer involvement acts as a moderator. Based on a self-administered survey dataset of 249 international tourists who are customers of luxury hotel brands, partial least square structural equation modeling (PLS-SEM) is used to test the hypotheses. The results indicate that all proposed hypotheses are supported. As such, this study discovers and clarifies the nature and dynamic mechanism underpinning the co-creation and reciprocation process of customer engagement with luxury hotels. In particular, the positive service experience is found to contribute to customer engagement via emotional attachment and relational marketing. Furthermore, the moderating role of customer involvement in the luxury hotel setting is confirmed.     

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.     

How do hotel managers react to rating fluctuation?

Rating fluctuation is inevitable for hotels listed on hotel booking platforms, which induces potential consumers’ perception of uncertainty and risk. Managerial response is expected to be effective in enhancing the interaction between hotels and consumers. However, how hotel managers react to rating fluctuation remains unclear. In order to fill this gap in the literature, we collect customer reviews and managerial responses from a leading hotel booking platform and build a panel dataset (hotel*month). The empirical results suggest that (1) rating fluctuation induces more managerial responses and requires more response time; (2) upscale hotels are more likely to conduct frequent and timely responses when facing rating fluctuation; and (3) hotels tend to respond more frequent and timely once rating fluctuation is observed by a larger audience. This study concludes by presenting theoretical contributions to the literature and practical implications for operators of hotel booking platforms and hotel managers.     

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.     

Enhancing customers’ brand loyalty via branded hotel apps

Many hotels have launched their own branded mobile applications to develop relationships with customers. Yet, research examining the benefits of branded hotel apps on brand loyalty is scant. The current research investigates the role of branded hotel apps on brand loyalty through customer engagement and brand trust in the hotel industry, based on uses and gratifications theory. Results identified cognitive and social benefits of the branded hotel apps positively influenced customer engagement and brand trust. Hedonic benefits positively influenced customer engagement and they indirectly influenced brand trust through customer engagement. Both customer engagement and brand trust positively influenced brand loyalty. Moreover, mediation effects of customer engagement and brand trust were identified. Results highlight how branded hotel apps serve as a facilitator of brand loyalty, providing theoretical and managerial implications.     

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.     

An exploratory analysis of hotel selection factors: A comprehensive survey of Tehran hotels

The selection of residence location in different countries is of high priority and significance for tourists. The selection of the most appropriate hotel entails a rather complicated decision-making process. A comprehensive hotel selection model can empower the hotel managers, the tourists, and the tourism industry to make decisions based on more effective indicators of high quality services for a higher rate of satisfaction. The purpose of this research is to deeply explore the broad literature and to identify the most significant hotel selection indicators and factors in Tehran hotels and to present a comprehensive model through an exploratory factor analysis of the extracted indicators so as to provide the managers and tourists with a firm ground for making better decisions regarding the indicators of hotel selection. Promenade and comfort, security and protection, network services, pleasure, staff and their services, news and recreational information, cleanliness and room comfort, expenditure, room facilities and car parking were identified as the main hotel selection factors of Tehran hotels. Afterwards, another factor analysis has been done in order to extract the next hidden set of factors within the aforementioned factors which return two main factors of “Hotel Comfort Factors” and “Hotel Compensatory Factors”. Following the creation of the final model and based on the intrinsic vagueness of decision making in the process of selection, a set of fuzzy membership functions for the extracted factors has been provided. The intention has been to provide the expert system and decision support system developers and users with a set of practical indicators in order to help them design and implement realistic systems based on the deeply studied indicators and factors of hotel selection. Such supportive systems can be directly presented to the tourists requesting a mechanism for selecting the most appropriate hotel but lacking enough information about the important indicators and factors and also to the managers of hotels who are trying to make strategic decisions regarding the most optimized investments on the indicators of selecting a hotel. Considering the priorities of tourists, hotel managers, entrepreneurs and investors in the hotel industry require deep investigations and studies for which this paper provides a firm basis.     

International hotel development: A study of potential franchisees in China

Franchising is a strategic partnership formed by the franchisor and the franchisee, and consequently partner selection between the franchisor and the franchisee is critical to the long-term success of a franchise. However, the literature has primarily taken the viewpoint of franchisors, but failed to explore the perspective of the potential franchisees. As China represents a significant growth opportunity for international hotel franchisors, this study examines the perspective of China's domestic hotel operators regarding franchising and analyzes a mix of factors that may affect such perspective. The study of 182 Chinese hotel general managers shows that China's hotel practitioners have considerable interest in franchising and are knowledgeable about the concept as it pertains to hotels. The findings indicate that the length of work experience and educational background of Chinese hotel operators may influence their franchising preferences. Hotel chains that have strong brand awareness, supportive centralized reservation systems, and offer relatively high returns on investment at relatively low franchise fees, are most attractive to potential Chinese franchisees.     

Environmental proactivity of hotel operations: Antecedents and the moderating effect of ownership type

This study examines the relative importance of three influential factors (stakeholder pressure, economic opportunities, and top managers’ personal environmental concern) in shaping managerial attitudes toward adoption of green programs in the hotel industry. The results, based on a sample of 235 top managers of hotels affiliated with three U.S. state hotel associations, suggest that stakeholder pressure is the most dominant predictor of managerial attitudes toward adoption of green programs followed by economic benefits and top managers’ personal environmental concern. In addition, the relationship between managerial attitudes toward adoption of environmental programs and organizational environmental commitment is found to be moderated by the ownership style. The relationship is stronger for independent hotels than for chain-affiliated hotels, indicating a more significant role of managerial discretion in implementing environmental strategies at the independent hotel setting than the chain hotel setting.     

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.     

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.     

How to enhance hotel guests’ acceptance and experience of smart hotel technology: An examination of visiting intentions

Smart hotel is a novel concept in the hospitality industry, and few studies have examined hotel consumers’ intentions to visit smart hotels. This study investigates the relationship between technology readiness (TR) and technology amenities (TA) as antecedents to visiting intentions, using an extended technology acceptance model (TAM). Based on an online survey with 648 valid responses, the results indicate that perceived ease of use and perceived usefulness are correlated with TA, but not with TR. Furthermore, TR affects intentions to visit smart hotels, but TA does not. The findings enrich the hospitality literature and have practical implications for hospitality marketers designing technology-related marketing strategies to maintain competitiveness. This study contributes to raising awareness of the importance of technological amenities and services for the future visiting intentions of hotel consumers.     

Mapping hotel brand positioning and competitive landscapes by text-mining user-generated content

This study uncovers hotel brand positioning and competitive landscape mapping by text-mining user-generated content (UGC). Rather than relying on a single dimension of consumer evaluation, the current study detects brand attributes by using both customer preferences as well as perceptual performance to develop meaningful insights. For this, the study combines content analysis and repertory grid analysis (RGA) to answer three key research issues. 111,986 hotel reviews from two biggest Chinese cities are used to explore and visualize the competitive landscape of six selected hotel brands across three hotel categories. Findings from the study will not only advance the existing literature on brand positioning and competitive landscape mapping but also help practitioners in developing brand positioning strategies to fight competitors within and across hotel categories.     

The formation of sub-brand love and corporate brand love in hotel brand portfolios

This study is the first, to our knowledge, to focus on the relationship between sub-brand love and corporate brand love in a hotel brand portfolio. With 425 responses from US travelers, this study finds that sub-brand intimacy and sub-brand passion are driven by ideal-self-sub-brand congruence and that sub-brand passion improves sub-brand intimacy. Both intimacy and passion for the sub-brand improve sub-brand commitment and increase sub-brand love, while sub-brand commitment also strengthens corporate brand love. Additionally, the spillover effects of sub-brand love extend to corporate brand love. This study clarifies Sternberg’s components of interpersonal love as the three love antecedents that form brand love for hotels and demonstrates the importance of aligning hotel sub-brands to fit with targeted consumers’ ideal self.     

When quality signals talk: Evidence from the Turin hotel industry

This study analyzes the relationship between quality signals and price setting through the application of hedonic price functions. The model proposals also include variables relating to land use policies and tourism development strategies. A simultaneous equation model endogenously estimates quality signals. This method is appropriate for analyzing emerging urban destinations, as characterized by the presence of an expanding hotel industry. The results are based on a dataset of 145 hotels in Turin, Italy. The empirical findings reveal that reputation-based quality signals help explain tariff levels. Price proposals also include a premium for quality assured hotels, defining some limits of the current hotel classification system. The empirical evidence has significant marketing implications for the hospitality industry’s competitiveness, since the results clarify the impact of quality signals on price level.     

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.     

Do brands matter? A comparison of branded and independent hotels’ performance during a full economic cycle

By analyzing longitudinal data of more than 51,000 hotels operating in the United States during the previous economic cycle, it is possible to draw conclusions regarding the performance of branded hotels compared to independent operations under various economic conditions. The results of the study indicate that while branded properties experience significantly higher occupancy rate during the different phases of the economic cycle, independent hotels experience significantly higher average daily rate (ADR) and rooms revenues per available room (RevPAR) during the same time period. While branded hotels are faced with various payments attributable to the brand, such as royalty payments and other franchise fees, those fees do not have a deleterious effect on net operating income (NOI) compared to NOI for independent hotels, suggesting that independent hotels are unable to bring their ADR and RevPAR premiums to the bottom line despite their savings in franchise expenses. Instead, the results indicate similar NOI for branded hotels and independent hotels during economic expansion, but significantly higher NOI for branded hotels during economic recession. The results of this study suggest that the intangible asset value of hotel brands may not be a static construct, but may vary by time. Sources of such intangible value of brands may include shared resources, guest loyalty programs, and yield management systems. These results contribute insight into the complex hotel owner decision of choosing between a brand affiliation and independent operation.