Globalisation,airline alliances and tourism: A strategic perspective

The forces driving globalisation have impelled the majority of international airlines to enter into strategic alliance arrangements. Strategic alliances have enabled airlines to work around structural problems of the industry, particularly foreign ownership restrictions, national regulatory constraints and constraints on building up networks. The history of alliances, to date, shows them to be changing and unstable. Alliances will probably continue to be a feature of the international airline industry, but the forms and membership of alliances may well change further in the future. Further deregulation and liberalisation of the industry could mean that alliances become less important in the future, if deregulation allows mergers and acquisitions of airlines across national borders. Two scenarios of possible futures are presented, with an assessment of their impacts on tourism, as an aid to strategic analysis.     

Service Failure and Recovery in a Strategic Airline Alliance Context: Interplay of Locus of Service Failure and Social Identity

ABSTRACT

There has been a dramatic increase in the past decade in the number of strategic alliances and business networks. Yet, despite these trends in the business environment, the individual firm-customer dyad has remained the contextual focus of most services marketing research (Gittell, 2002 Gittell, J. H. 2002. Relationships between service providers and their impact on customers. Journal of Service Research, 4(4): 299–311. [Crossref] , [Google Scholar]). Using a scenario study, this research investigates the effects of service failures in a strategic airline alliance setting, with a particular focus on locus of service failure and strength of social identification, on three alliance entities—a consumer's home carrier, the alliance partner airline, and the alliance. Study findings suggest that consumers' evaluations are more stable (less extreme) when the home carrier causes the service failure. In contrast, when a lesser known entity (partner airline) causes the service failure, consumers are more willing to rate that entity harshly. Furthermore, compared to weak identifiers, strong identifiers were not only more positive in their evaluation of the home carrier but also in their evaluation of the alliance, pointing to a halo effect, whereby positive evaluations of the home carrier are transferred to the alliance. Implications of study results are discussed and directions for future research provided.     

Impact of an Airline Merger on Customer Satisfaction

ABSTRACT

Given the radical changes in the airline industry where many airlines struggle to sustain their financial viability, consolidation appears to be one viable option for airlines. While airlines guarantee that consolidation will bring better customer service, the traveling public fears the effects of mergers that result from less competition. Using the AA/TWA merger, this article presents the results of an empirical study that provides both the airline public and airlines with insight into the real impact of an airline merger on airline service and customer satisfaction.     

The Impact of Consumer Involvement on the Consumers' Perception of Service Quality-Focusing on the Korean Hotel Industry

Abstract

The consumers' evaluations of service quality may be impacted by their assessments of the actual service received, the service provider, and/or the service facility. Within a service marketing context, the more an individual believes the service is personally relevant, the more involved the individual may become with various aspects of the service. This study integrates these two important variables in consumer behavior, which are consumer involvement and service quality. This paper investigates the effect of consumer involvement on the consumer's perceived service quality by focusing on the Korean hotel industry.     

Will you fly with this airline in the future? An empirical study of airline avoidance after accidents

ABSTRACT

While safety is the paramount concern of the airline industry, accidents do happen. The subsequent media attention relating to an airline accident might lead potential passengers to avoid certain airline operators. This study examines factors potentially determining tendencies to avoid such airlines. A self-administered random survey was conducted with 230 respondents in a metropolitan area. Structural equation modelling was employed and the results highlight the significant role of consumer trust and service recovery. Consumer trust plays a mediating role in the relationships between the factors (i.e. previous flight experience, company image, stability attribution, controllability attribution) and the decision to avoid an airline.     

Value Creation

Abstract

The most essential theory of loyalty marketing is that a small increase in loyal customers can bring a significant increase in profitability to a business. Recently, businesses in various industries have turned single-brand loyalty programs into corporate-wide loyalty programs across different brands. The purpose of the study was to examine the effect of strategic alliance on customer loyalty in the hotel industry. Results of the study indicate that there is a positive relationship between strategic alliance and customer loyalty, and that value-creation from strategic alliance is only one element in the decision-making process of loyal customers. Managerial implications, limitations, and recommendations for future research were discussed.     

Customer Satisfaction,Training and TQM

Abstract

Managers within the hospitality industry make frequent reference to TQM principles. The extent to which these principles are applied effectively within the human resource management area of hospitality however remains under-researched. By applying TQM principles, this paper focusses on the relationship between customer service and training drawing upon comparative data from Western and Thai hotels. The paper also examines the perceptions of staff towards of hotels' guest-orientation and the provision of quality guest services. The researchers found that guest assessments of the performance of hotel frontline staff depend on their services function (e.g., front-office, housekeeping). The service quality skills needed by frontline staff were also found to differ in the case of Western and Thai hotels. Such differences merit proper consideration on the part of managers within the major hotel chains. The various findings may assist hospitality managers to determine appropriate strategies for the enhancement of guest services particularly in cross-cultural settings.     

The value chain's use for the service industry

The value chain model (Porter, 1985) has been originally developed for manufacturing. Therefore, applying it to the service industry may cause several problems. This study examines the value chain's use for the service industry with particular reference to the hotel rooms division. Findings from the research show that the value chain technique is also useful for service organizations but its meaning in the strategic process is different from that for the manufacturing industry.     

The Impact of Brand Relationship and Attributions on Passenger Response to Service Failure

It is important for service companies to develop and maintain consistent and stable consumer loyalty. Although consumer brand relationship and attributions have been applied to various service industries, they have not been investigated in the airline industry where passenger emotions are considered critical. This study addresses the consequences of brand relationship quality, the mediating influence of emotions, and the moderating role of switching costs through structural equation modeling of data collected from passengers who had experienced flight delay. The results suggest that (1) airline relationship with passengers is an important and valuable asset, especially in the case of stability attributions, (2) negative emotions play a partial or full mediator role in the causal relationship between attributions and behavioral intentions, and (3) minimizing negative emotions is more effective than relying on switching costs for behavioral intentions. It can be concluded that the airline industry should try to manage passenger emotions more appropriately since passengers have an emotional attachment to their brands and passengers' negative emotions can be influential to repurchase intentions when service failures occur.     

A Factor Analysis of Internal Service Constructs in the Lodging Industry

Abstract

Parasuraman, Zeithaml and Berry's Extended Model of Service Quality has received a great deal of attention in various disciplines. Nearly all the work on this model has addressed either the dimensionality of the consumer service perceptions or the way in which the model measures quality. Only one work has been identified that addressed the internal components of their model. It is critical that organizations understand the internal factors that affect the delivery of a high quality service experience. This research subjects the internal constructs identified by Parasuraman, Zeithaml, and Berry to a factor analysis study in the lodging industry. This research found that the management factors did not function as proposed. New factors are identified based on exploratory factor analysis and a comparison of the two models is presented.     

Marketing Culture and Business Performance in the Airline Industry

Abstract

In recent years the airline industry has witnessed increased emphasis on the cultivation of a culture which fosters the effective implementation of marketing programmes. This growing attention stems from the belief that sound marketing practices provide an important source of competitive advantage in the service sector which is characterised by high levels of interaction between firms and their customers. Moreover, marketing academics and managers proclaim that a strong marketing culture leads to customer retention, which in turn, yields higher profitability. In this study an attempt is made to investigate empirically the relationship between UK airline firms' marketing culture and business performance. Our results indicate a strong relationship between marketing culture and business performance. To conclude, implications of the findings for airline managers and avenues for future research are discussed.     

The Effect of Cross-Industry Cooperation on Performance in the Airline Industry

Summary

Airline services are one part of the inter-connected network of travel services. Brandenburger and Nalebuff (1995, 1996) suggested that firms may add value to their offerings by cooperating with other members of a firm's value net (competitors, substitutors, customers, and suppliers). In a 14-year longitudinal study, this paper explores the evolution of cooperative relationships between members of the U.S. domestic airline industry and other firms outside the U.S. domestic airline industry, with the goal of identifying performance effects associated with such cooperative alliances. Results of the pooled, cross-sectional time series regression indicate that cooperative alliances outside the U.S. airline industry contribute positively to performance when environments are rapidly changing and variable.     

酒店业与物管业的管理模式比较及其联盟业态创新

文章比较了酒店业与物管业在管理模式上的异同.文章认为,酒店业与物管业同属服务行业,两者在产品本质、服务内容、管理方法和文化特质上具有相通性,这为两个行业的战略联盟提供了内在基础.文章据此分析了两个行业的战略联盟形式,及其所带来的业态创新发展,并对联盟的运作提出了具体的管理措施.     

The Identification and Implementation of Key Competitive Factors for Tourism Based Firms

ABSTRACT

The main aim of this conceptual paper is to propose means of extending current theoretical approaches to understanding the traveller destination decision process. In order to achieve this, a means of better identifying and implementing strategies within the service system, by utilising a strategic management approach, is proposed. In addition, a number of researchers have argued that service leaders successfully introduce products and services to the market far in advance of customer expectations. It is argued in this paper that such products and services are delivered by innovative organisations, able to assess that the benefits of such innovations will outweigh the costs. The firm attempts to tap “latent” demands that have yet to be fully articulated by the consumer through established expenditure patterns. By tapping into such demands within the consumer psyche, service firms are able to “delight” customers with their creativity and innovation. It is concluded that such a service component has become an integral source for sustainable competitive advantage within a business and strategic planning framework.     

Passengers’ perceptions of airline lounges: Importance of attributes that determine usage and service quality measurement

The current exploratory study investigates passengers’ perceptions of airline lounges by measuring the importance of attributes that determine usage and service quality in those facilities. Data collection was the result of a survey of airline lounge users at the Incheon International Airport, South Korea. The attributes that determine airline lounge usage categorize as: image and accessibility, atmosphere, food and beverage (F&B) service, and facility’s dimensions. Atmosphere and F&B service prove to be the most important dimensions affecting passengers’ use of the airline lounge. Service quality variables determining passengers’ perceptions of the airline lounge categorize as: atmosphere, F&B service, employee service, and facility’s dimensions. Among the service quality dimensions, F&B service was the strongest predictor of overall satisfaction and lounge revisit intention. Furthermore, the study considers the relationship of overall satisfaction and lounge revisit intention according to airline selection.     

Dealing with pandemics: An investigation of the effects of COVID-19 on customers’ evaluations of hospitality services

The hospitality industry is highly vulnerable to pandemics. However, little is known about how pandemics alter travelers' evaluations of hospitality services. Therefore, this study investigates the changes in travelers' expectations and perceptions of hotel services during different stages of the novel coronavirus 2019 (COVID-19) pandemic. 98,163 Chinese hotel reviews were collected and scrutinized via text mining and sentiment analysis techniques to derive new implications for service optimization. The results reveal shifts in consumers’ evaluations well beyond hygienic requirements. Insights obtained from this research can help guide hospitality practice in organizing its priorities during acute pandemic situations and adjusting to possibly longer-lasting shifts in consumer preferences.     

How service seasons the experience: Measuring hospitality servicescapes

Hospitality servicescapes incorporate physical complexity and social interaction. These two features are often measured separately but rarely measured together in attempts to uncover consumer perceptions within these settings. A psychometric scale developed within the restaurant setting shows a five-dimensional structure for capturing the personality of a hospitality setting. In contrast to attribute-based measures, this measurement approach highlights the importance of service interactions in shaping consumer perceptions. The items proposed account for the dynamism of the setting including the heterogeneity possible due to high service levels. The scale indicates how certain consumer perceptions, as outlined in the dimensions of the proposed scale, are likely to influence consumer outcome behaviors. Managerially, the scale provides a more precise understanding of consumer perceptions within restaurants. As such, the scale can serve as an interesting positioning tool as well a method to evaluate consumer perceptions of restaurants.     

Hourly Employee Retention Factors in the Quick Service Restaurant Industry

Abstract

Hourly employee retention in the quick service restaurant industry has long been a major area of concern for both operators and multi-unit restaurant decision makers. While numerous studies concentrated on managers' perceptions on why employees leave, few have explored the employees' perceptions on employment characteristics that kept them from changing jobs. The study employed a self-administered questionnaire and asked 233 quick service restaurant employees in the Midwestern region of the United States to rate the importance of and their experience with 20 employment characteristics of their job. The findings revealed that the most important employment characteristics were nice people to work with, humane approach to employees, and hourly wages. In addition, the study showed statistically significant differences between the level of importance and the level of experience attached to 18 out of 20 employment characteristics, which could explain the high turnover and low retention of employees in the industry. Implications for management are discussed.     

Thailand's Hotel Industry

Abstract

The purpose of this paper is to provide an exploratory examination of tourism on Phuket, a tourist island in the Andaman Sea, concentrating on the level of service provided in hotels. Although still a growth industry, the basic problems of tourism are (1) quality perceptions by the tourists, and (2) managing challenges, the latter based in part on western practice and in part on religion, namely Theravada Buddhism.     

The Impact of the Internet on Travel Agencies in Hong Kong

Abstract

In recent years, the travel and tourism industry has begun to develop Internet applications more extensively. Many travel service suppliers, such as hotels and airline companies, already use the Internet as a direct channel for customer reservations. The integration of the Internet into the travel and tourism industry, however, presents a challenge towards the traditional role of travel agencies. The purpose of this study is to find out what impact the Internet has on travel agencies in Hong Kong. Outcomes of this research indicate that travel agents generally have positive attitudes towards Internet applications, and the potential threat-disintermediation-has not yet affected the travel industry. Travel agents believe that they can take advantage of the Internet technology to provide value-added services for their customers. Outcomes of the present study also indicate that there are significant relationships between company size, age and some Internet attributes. Travel agencies should therefore pay more attention to these attributes when adopting Internet technology.