You’re the Only One,or Simply the Best. Hotels differentiation,competition, agglomeration,and pricing

Drawing on competition, signalling and agglomeration perspectives, we investigate how vertical and horizontal differentiation influence price, and how hotel competition and agglomeration may moderate any such effects. We argue that vertical differentiation should include online reputation to complement category, and that hotel clustering can provide benefits for incumbents. Hypotheses are tested using quantile regression on a sample of 1870 hotels. In order to account for any service dimensions, an index of differentiation is estimated. We found that local competition and agglomeration moderates the relationship between differentiation and pricing. Furthermore, online reputation effects are more intense for low priced hotels. Indeed, when competition is intense, the positive effect of horizontal differentiation is lower for low priced hotels. Similarly, hotel clustering reinforces the impact of category on price, but it reduces the benefits of offering more services.     

Service guarantees in the hotel industry: Their effects on consumer risk and service quality perceptions

This work proposes a theoretical model that examines how service guarantees offered by hotels affect the perceived quality and perceived risk of consumers, as well as the moderating effect of corporate reputation. We tested hypotheses with an experiment using a 2 (corporate reputation: good and poor) × 2 (guarantees coverage: unconditional and specific) × 2 (payout: money-back and non-money-back payout) between-subjects design. A total of 222 questionnaires were completed by hotel consumers in Taipei. The results indicate that the type of service guarantee significantly affects the perceived quality and perceived risk of consumers. Furthermore, corporate reputation has a moderating effect on the relationship between service guarantee type and the perceived quality and perceived risk. Some suggestions concerning service guarantee strategies for hotel services are given.     

The impact of perceived benefits and risks on current and desired levels of outsourcing: Hotel managers’ perspective

The purpose of this paper was to investigate the interactions between perceived benefits and risks of outsourcing and outsourcing adoption from the hoteliers’ perspective. Data were collected from 123 hotels in Egypt using a list of 32 hotel activities. Results revealed that managers’ perceived benefits of outsourcing had a direct positive effect on the current level of outsourcing, while indirect effects on the desired level of outsourcing. Interestingly, results confirmed the mediating role of current outsourcing between managers’ perceived benefits and the desired outsourcing. However, the perceived risks of outsourcing had a nonsignificant moderating effect. The findings provide implications for both theory and practice.     

The effect of COVID-19 on tourists’ intention to resume hotel consumption: The role of resilience

This study aims to better understand how one particular personal capacity—psychological resilience—may help consumers adapt to the ‘new normal’ provoked by the COVID-19 pandemic in the hotel context, which is characterized by high uncertainty. We conducted a quantitative empirical study among consumers of hotel services, which showed that their psychological resilience has a negative effect on their perceived health risk and emotional risk. This negative effect on risk helps increase tourist intention to return to consuming hotel services despite the on-going pandemic. The findings are of value to the literature and the professional sector alike, as they demonstrate both relationships jointly for the first time. The work can help hotel firms to design more effective strategies for approaching customers in the ‘new normal’.     

Luxury hotels going green – the antecedents and consequences of consumer hesitation

Abstract

Luxury hotels might hesitate to operate in a more environmentally friendly way because they worry such practices will harm their performance. However, hotels can have a significant impact on the natural environment. Building on protection motivation theory, this study examines consumers’ evaluations of luxury hotels that are becoming more environmentally friendly by investigating the influences of perceived risks (i.e. functional, financial, hedonic, and self-image risks) on consumers’ hesitation and subsequent purchase intentions. Additionally, the moderating effect of consumers’ green hotel knowledge on the influences of perceived risks on hesitation is examined. Questionnaires were completed by 548 participants from Taiwan and revealed that perceived risks can significantly influence hesitation, which can in turn affect purchase intentions. Furthermore, green hotel knowledge moderates the influence of perceived functional and hedonic risks on hesitation. This study’s contributions to the luxury product consumption literature and sustainable tourism studies are discussed.     

Examining the effects of robotic service on brand experience: the moderating role of hotel segment

This research investigates the effects of robotic service on guest evaluations of hotel brand experience, and examines the moderating effects of hotel segment via a 2 (service delivery video: human or robot) x 3 (hotel segment: budget, midscale, or luxury) between-subjects experimental design. The findings suggest higher levels of sensory and intellectual experience from robotic service but lower levels of affective experience. For behavioral experience, robotic service influenced a higher rating for midscale and budget hotels, but not for a luxury hotel. Overall, robotic service may not necessarily enhance brand experience as influenced by the moderating role of hotel segment.     

Do job insecurity,anxiety and depression caused by the COVID-19 pandemic influence hotel employees’ self-rated task performance? The moderating role of employee resilience

The COVID-19 health disaster has had a dramatic impact on the global hospitality industry, affecting millions of people. The aim of this study is to examine the impact of job insecurity on hotel employees’ anxiety and depression, and whether these psychological strains could influence employees’ self-rated task performance during the COVID-19 pandemic. We also examine the moderating role of hotel employees’ resilience in this context.The hypotheses were examined by collecting data from 353 hotel employees currently working in the Canary Islands (Spain). The results highlight the significant effects of job insecurity on employees’ anxiety and depression levels. However, hotel employees’ task performance was not affected by their job insecurity or by their anxiety and depression. In addition, employees’ resilience has a moderating effect as it reduces the negative influence of job insecurity on depression. Finally, the discussion section sets out various theoretical and practical implications of the findings.     

Asymmetric price responses to hotel competition caused by heterogeneous customers’ willingness to pay

Heterogeneous customers’ willingness to pay affects hotel competition and results in competitors’ asymmetric price responses. To study this lopsided effect, we construct a game framework featuring an upscale hotel and an upper-midscale hotel under a series of assumptions. We first analyze hotel pricing and competitor price responses and then compare the competitors’ responding adjustments. Primary findings show that (1) the price response expressed as an amount by the upscale hotel is more than that of the upper-midscale hotel, and that (2) the price response expressed as a percentage by the upscale hotel is less than that of the upper-midscale hotel. Finally, we present reasons for our findings and offer suggestions to hotel revenue managers.     

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.     

Understanding Motivations and Acceptance of Location-Based Services

Location-based services (LBS) provide new opportunities for consumer convenience, just-in-time access to information, and services based upon the context of one’s location. Using a hotel/resort industry context, this study examines the impacts of LBS usage motivations on customers’ intentions and the moderating effects of age, gender, and experience on the relationships between motivations and intentions. Confirmatory factor analysis and structural equation modeling were used to analyze data collected from 398 hotel/resort customers owning smartphones. The results reveal the importance of utilitarian and social values in a customer’s adoption of LBS. This study provides practical significance to hospitality operators looking to deploy this type of technology to enhance the guest experience and revenue generating opportunities.     

The relationship between purpose of performance appraisal and psychological contract: Generational differences as a moderator

This study aims to explore the relationship between performance appraisal and psychological contract (PC) from the perspective of U.S. hotel employees, as perceived by different generational cohorts. The current study also examines the moderating role of generational difference on the relationship between perceived performance appraisal purpose (PAP) and hotel employees’ PC. A sample of 230 full time frontline U.S.-based hotel employees was employed to investigate these relationships. Hierarchical multiple regressions were used for data analysis and the results indicated that both administrative and developmental PAP were positively associated with PC. The positive relationship between administrative PAP and PC was significantly strengthened for Generation Y employees than for Baby Boomers and Generation Xers. There was no significant moderation effect of generational difference on the positive relationship between developmental PAP and hotel employees’ PC. The research recommended HR management practices related to designing performance appraisal systems for diverse workplace in U.S.-based hotels.     

Mass customization in food services

This study examines the effect of mass customization (MC) on perceived value in food services and tests whether perceived value is higher in food services with a customized menu than a fixed menu. The study also examines moderating effects of social influence and consumption motivation. In Study 1, a 2 (customization: low vs. high) × 2 (social influence: dining alone vs. together) between subject experiment was conducted sequentially with two types of food consumption motivation (utilitarian vs. hedonic consumption situation). The result shows a significant moderating effect of consumption motivation on the relationship between MC and perceived value. Study 2 shows that perceived value and satisfaction mediate the relationship between social influence and repurchase intentions. In addition, the result shows that consumers eating alone have higher levels of functional value perceptions, satisfaction, and repurchase intentions than those eating together.     

The Moderating Role of Water Park Service Quality,Environment, Image,and Food Quality on Perceived Value and Customer Loyalty: A South Korean Case Study

This study empirically examined not only the relationship between perceived value and customer loyalty, but also the moderating role of service quality, environment, image, and food quality at a water park, a segment of the tourism industry. In particular, the current study, using hierarchical regression analyses, examined the direct effects of perceived value on customer loyalties—loyalty and behavioral loyalty—as well as the moderating effect of four elements. As anticipated, this study showed that perceived value has significant and positive effect on both types of loyalty. In addition, the result of the interaction effects showed that service quality and food quality acted as moderators on the relationship between perceived value and attitudinal loyalty; however, water park image acted as a moderator on the relationship between perceived value and behavioral loyalty only. Finally, these results indicated that three elements—service quality, water park image, and food quality—have significant interaction on the relationship between perceived value and attitudinal/behavioral loyalty. These findings may provide water park operators with useful and detailed guidelines for satisfying customer loyalty levels, both attitudinally and behaviorally. More detailed findings and implications are also discussed.     

Antecedents of loyalty toward rural hospitality enterprises: The moderating effect of the customer's previous experience

This paper aims to identify the consumer behavior variables and the moderating effect of customers’ previous experience that generate greater customer loyalty toward rural hospitality enterprises. A model is proposed that encompasses the moderating effect of customer experience on the relationships between: the functional and affective perceived value of the firm's offer; the firm's reputation; and customer satisfaction – and the effect of these variables on loyalty-driven behaviors (recommendation and repurchase intentions). The work finds that functional and affective perceived value influence reputation and satisfaction, and that this effect is moderated by the customer's experience. When they have prior experience of the firm, affective perceived value takes precedence over functional perceived value. However, functional perceived value constitutes the most valued element when customers are using the services of the firm for the first time. Reputation and satisfaction are also found to contribute to the generation of better recommendation and repurchase intentions.     

Value of a hotel stay: a case study in Hong Kong

This study examines the value of a hotel stay from the perspective of hotel customers and hotel service professionals. Respondents, including hotel customers and hotel service professionals, were asked the extent of their agreement or disagreement with statements related to four different value dimensions: functional value, emotional value, social value, and customer-perceived sacrifices. Results showed that there are significant differences between the hotel service professionals’ perceived value of the hotel stay and customers’ perceived value of the hotel stay. The differences are found in social value and customer-perceived sacrifices.     

Higher tourism specialization,better hotel industry efficiency?

This study examines the effects of both specialization in tourism and market competition on the efficiency of the hotel industry. For this purpose, stochastic frontier analysis (SFA) was employed to evaluate the efficiency of the hotel industry on a provincial level in China and to analyze how it is impacted by specialization in tourism and market competition. The results confirm that tourism specialization and market competition exert a synergistic effect on hotel industry efficiency in China. This study finds that tourism development as represented by a high level of tourism specialization by a destination does not guarantee high efficiency in hotels but does enhance the negative effect of market competition on hotel industry efficiency. Significant policy and managerial implications stem from these findings.     

Drivers of hotel employee’s voice behavior: A moderated mediation model

This study developed and tested a moderated mediation model for examining the relationships among person-organization fit (P-O fit), employee voice, employees’ perceived nature of the work and employees’ perceived functional quality of their services. Using 265 frontline employees from several 3 star hotels in Taiwan, the analytical results show that P-O fit is positively related to employee voice, and that employees’ perceived nature of the work mediates the positive relationship between these two variables. The analytical results also show that employees’ perceived functional quality of their services moderates the direct effect of P-O fit on employees’ perceived nature of the work, as well as the indirect effect of P-O fit on employee voice via employees’ perceived nature of the work. Theoretical and practical implications for the hospitality literature and hotel practitioners are discussed herein.     

COVID-19: The effects of job insecurity on the job engagement and turnover intent of deluxe hotel employees and the moderating role of generational characteristics

COVID-19 has caused an unprecedented crisis in all industries around the world. This study sought to verify that job insecurity, as perceived by deluxe hotel employees, significantly affects their job engagement and turnover intent and to determine the moderating effect of generational characteristics. The finding showed that perceptions of job insecurity had negative effects on the engagement of deluxe hotel employees. Also, employees’ job engagement can decrease turnover intent. The engagement of employees fully mediated the relationship between perceptions of job insecurity and turnover intent, and job insecurity caused by COVID-19 had a greater influence on Generation Y than Generation X in reducing job engagement, indicating that the negative impact of job insecurity is higher in Generation Y.     

Influences of price,service convenience,and social servicescape on post-purchase process of capsule hotels

A capsule hotel is a new affordable type of hotel that attracts backpackers and young tourists. This study proposes a research model to verify the influences of perceived price, service convenience, and social servicescape on functional and experiential values, and then on repurchase intention and electronic Word-of-Mouth (eWOM). Research results show that tourists’ perceived price and service convenience affect functional value. Service convenience and social servicescape influence experiential value. Functional value and experiential value encourage guests to repurchase capsule hotels and share positive eWOM. This study aims to inspire research interest in capsule hotels and to provide practical implications for hotel operators.