Effects of the Booking.com scoring system

Booking.com provides a large travellers’ reviews database that is useful for consumers, hoteliers and academics. Recent research discovered unexpected peculiarities in its scoring system, suggesting it could lead to “inflated scores” for hotels on their website. To confirm the above suspicions, the methodology used in this paper compares values assigned on Booking.com with those on Priceline that have a conventional scoring system. Conclusions show significant distortions, particularly in hotels with low and medium scores.     

Negotiated exchanges in the online hospitality market: Hoteliers and hotel managers’ perceptions of Booking.com

Social exchange theory and online business-to-business (B2B) relational exchanges have been scarcely examined in the hospitality sector. Taking into consideration this research gap and the expansion of online travel agencies (OTAs), this exploratory study aims at examining hoteliers and hotel managers’ perceptions of their negotiated exchanges with Booking.com. Twenty two in-depth interviews were conducted with hoteliers and hotel managers from two Regions of Northern Greece. The results revealed that the informants considered their negotiated exchanges with Booking.com to be characterized by assurance rather than trust and admitted being dependent on it in financial and advertising terms. The hoteliers and hotel managers felt satisfied with their economic exchanges but required stronger social interactions. Additionally, hotel reputation was considered among the most important intangible outcomes of this partnership. Based on these findings relevant managerial implications are provided to improve social exchanges between Booking.com and accommodation providers.     

A room with a view—A valuation of the Mediterranean Sea view

Aesthetic view is one of the ecosystem services of the Mediterranean Sea which can be estimated using price differences in the hotel market. Hotels situated on the Mediterranean Sea charge higher prices for a room with a sea view than for a room without it. The value of this view in 10 major Mediterranean regions was estimated in this paper using a hedonic price method. Data on 2819 hotel rooms in high season and 2406 rooms in the low season were collected from Booking.com and fixed effects regression was used to estimate the model coefficients. Hotel room prices were found to be higher by about 10% for a room with a view than for one with no view specification. No significant difference was found between regions or season. These findings lend support to the fact that the view of the Mediterranean is equally valued in all regions.     

The role of language in the online evaluation of hospitality service encounters: An empirical study

In an increasingly global travel market, hospitality services encounters involve growing interactions between providers and customers often belonging to different nationalities and cultures and speaking different languages. Extant hospitality management literature has explored the influence of language on service evaluations mostly in offline settings. This study innovatively captures the effect of the language used in online hotel reviews on online consumer ratings in two distinctively different destinations located in culturally different countries: Italy and Russia. Based on almost half a million Booking.com online reviews written by hotel guests in Moscow and Rome, we illuminate if and to what extent domestic vs. foreign language use affects online customer satisfaction. We find that the use of domestic language exerts a positive impact on online ratings in both countries. Implications for hospitality practitioners and managers, developers and managers of online review platforms, and customers of hotel services are discussed.     

Guest satisfaction in independent and affiliated to chain hotels

In the hotel sector, two basic organisational forms can be distinguished, independent and chain-affiliated, which reflects in the entities' management processes and in the dimensions of the hotel service. Guest satisfaction is the determinant of and the secret to success in the hotel industry, nevertheless the comparison of customer satisfaction of both operational models is scarce. The main goal of this work is to determine whether those differences exist, considering the geographical scope and size of the chain in linked hotels. Customer satisfaction was analysed in 404 four and five-star hotels, measured through the hotel ratings from online travel agent Booking.com, in two tourism destinations in Spain using the Rasch Measurement Theory. Results obtained indicate that the superiority in customer satisfaction of one of these management forms shows for specific dimensions of the service provided.     

The influence of firm characteristics on earnings quality

This study examines the effect of firm characteristics on earnings quality using a sample of Spanish hotel firms during the period 2000–2011. First, we build a multidimensional measure of earnings quality including attributes as persistence, predictability, variability and earnings smoothing. Second, we examine variables that are potentially associated with earnings quality and sort these into five categories: market variables, business strategy, ownership structure, audit function and control variables. The findings suggest that the internationalization, the location, the ownership structure and the audit function influence earnings quality in hotel firms. This paper presents managerial implications for professionals, users of financial information, and academics.     

Impact of location on profitability in the Spanish hotel sector

This paper analyzes the impact of market structure on hotel profitability in a sample of 8992 Spanish hotels in 2005–2011, using variables relating to the hotel and tourist destination in addition to structure–conduct–performance (SCP) and Chicago School frameworks simultaneously. The results show that profitability depends largely on the market structure and the level of demand of the tourist destination and we confirm the SCP proposals. Regarding characteristics of each hotel, there are unobservable characteristics which influence on profitability and we identify the existence of economies of scale.     

Hotel category switching behavior—Evidence of mobility,stasis or loyalty

Adopting Colombo and Morrison’s (1989) brand switching matrix (BSM) as a framework, we analyze hotel guest loyalty at the service category level via survey data collected from a random sample of returning visitors to Macau. Specifically we examined repeat visitors’ likelihood of staying at the same hotel service level and explore how observed switching behavior is likely concomitant to structural macro-level factors, such as intensity of competition, entry of new operators and the lack of government policy and regulation over hotel substitutes, concurrently observed over the same period. The study thus delves into, on the one hand, aspects of hotel ‘class mobility’ or switching over time by individual consumers and, on the other, how changes in the competitive and structural environment affecting different hotel categories can reflect such switching. The analytical approach used in the study is unique in that it focuses on switching behavior, rather than intrinsic, attitudinal or psychosocial conceptions of loyalty. Results also provide a richer backdrop for understanding changes in individual hotel brand loyalty, which normally ignores the influence of category-level and large scale extrinsic factors.     

Resort hotel service performance (RESERVE) – an instrument to measure tourists’ perceived service performance of resort hotels

Based upon a rigorous psychometric process of scale development through preliminary qualitative studies and a subsequent survey in the resort hotel setting, the authors propose the RESERVE scale as a comprehensive instrument for assessing resort hotel service performance. The proposed scale conceptualizes resort hotel service performance as a second-order, three-dimensional construct that assesses tourists' perceptions of setting, audience, and actors. The data supports the dimensional structure of RESERVE, providing empirical evidence for the scale's validity. The paper concludes with a discussion of implications and future research directions.     

Economies of Scale Could Be Key to Profitability

Abstract

The growth of China's tourism hotel industry has been accompanied by declining profitability. Using cross-province tourism hotels data of 2000, this study attempts to empirically quantify the impact of operation scale on hotel performance. Controlling for the effect of overcapacity, this study found a significant and positive association between operation scale and profitability. The findings suggest that to improve performance, the Chinese tourism hotel industry needs not only to reduce the overcapacity but also reverse the property-downsizing trend and pursue economies of scale.     

Towards a lifestyle experience: A phenomenological conceptualization and scale development in the hotel context

The topic of lifestyle has attracted interest both in service providers and marketing researchers. To better understand lifestyle experience, study 1 adopts a phenomenological approach to conceptualize lifestyle experience that is generated within consumers in a hotel setting. It is discovered that sense of community and culture is the spirit of a lifestyle experience that lives up to its name. In addition, it is uncovered that lifestyle experiences essentially meets consumer's higher-ordered psychological social needs. Studies 2, 3, and 4 demonstrate the development of a scale, LHEI—Lifestyle Hotel Experience Index, that captures consumer's lifestyle hotel experience. Such scale can be easily adapted to measure lifestyle experiences in other contexts. This paper contributes to current research by conceptualizing and quantifying the novel lifestyle experience. It contributes to the industry as a wakeup call for more sustainable and consumer-centric strategies in value co-creation.     

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.     

Testing the Moderation Effect of Hotel Ambience on the Relationships Among Social Comparison,Affect, Satisfaction,and Behavioral Intentions

This study incorporated the social service environment in the hotel guest affect–satisfaction–behavioral intention model in order to elucidate the effect of social comparison on consumption-based affect by factoring in the moderation effect of hotel ambience on relationships. Structural equation modeling of survey data from hotel guests revealed that social comparison significantly influences hotel guests’ affect, and that affect has a critical role in inducing satisfaction and behavioral intentions. Hotel ambience moderates the model’s relationships – high ambience strengthens the relationships more so than low ambience. Results affirm the inclusion of social environments in predicting hotel guest experiences and shed light on managerial implications for bettering service provision.     

The Usage of Electronic Data Interchange in the Hotel Industry

This study investigates the major factors that can influence electronic data interchange (EDI) within the hotel industry. Results illustrate that some profile, channel, and task variables can influence EDI usage in the areas of purchasing, financing, and strategy. By identifying and testing relevant intraorganizational variables, this study offers insights to academics and practitioners regarding the usage of EDI within the hotel industry. Indications are EDI could become an important tool for hotels to use in conducting business in both an interorganizational and intraorganizational manner.     

Development and validation of standard hotel corporate social responsibility (CSR) scale from the employee perspective

The prevalent trends of sustainability and responsible management have promoted corporate social responsibility (CSR) to attract considerable research and business interest. However, despite its importance, few efforts have been exerted to develop a standardized CSR scale in the hotel industry. This study aims to develop and validate a multidimensional scale of hotel CSR measurement as perceived by hotel staff who understands CSR. Results of running factor analyses generate a five-factor structure. The overall measurement model demonstrates a satisfactory level of goodness-of-fit and supports convergent validity, discriminate validity, nomological validity, and predictive validity. The legal domain received the highest mean score among the five hotel CSR domains, followed by ethical, financial/economic, environmental, and social/philanthropic domains. The value on employee attitude toward the CSR-implementing hotel, employee satisfaction with the CSR-implementing hotel, and organizational commitment toward the CSR-implementing hotel varied between front-of-house and back-of-house employees. This validated measurement scale is recommended for future studies to explore the effect of hotel CSR in various countries or regions.     

Development and validation of a hospitality idiosyncratic deals scale

This study explores middle and senior hotel managers’ perceptions of their own idiosyncratic deals (i-deals) and develops a scale to measure i-deals in the Chinese hospitality industry. The study uses a mixed research method consisting of a questionnaire survey of 675 middle and senior hotel managers and in-depth interviews with 20 knowledge workers in the hotel industry in mainland China. The findings reveal that there are three types of i-deals in the Chinese hospitality industry: (1) career and incentives i-deals; (2) task i-deals; and (3) flexibility i-deals. The study proposes and validates a three-dimensional scale of hotel managers’ i-deals, thereby enriching our understanding of the idiosyncratic terms of employment in the hospitality industry.     

酒店行业协会的运行机制及其变迁——以广州地区酒店行业协会为例

行业协会在酒店业发展进程中发挥越来越大的作用,但在国内现行条件下,行业协会发展面临多重困难。文章以广州地区酒店行业协会为案例,采用实地调查和深度访谈的方法,讨论行业协会的运行机制及其变迁。研究认为,第一,"政会不分"是目前行业协会管理的主要问题,政府应创新行业协会管理机制,加快"政会分开"的进程,推进部分行业职能向协会转移;第二,酒店行业协会应大胆创新,依据地区、行业发展环境动态调整组织架构,丰富协会职能发挥,以此达到激活协会运行机制的目标。基于此,酒店行业协会可以更好地为会员酒店服务,提升行业专业化管理水平。     

Measuring hotel performance: Using a balanced scorecard perspectives’ approach

This paper provides an examination of hotel performance research published in the seven leading hospitality and tourism journals from 1992 to 2011, through the lens of the balanced scorecard (BSC). The review seeks to answer three questions. What BSC perspectives are included in hotel performance research published in major hospitality and tourism journals? What are the trends and implications for future hotel performance research? What are the main geographical areas of publication outputs?Eleven hypotheses were tested using a database of 138 articles that fully met the key word selection criteria of hotel, BSC and performance. The results suggest hotel performance attracts widespread attention from hospitality scholars, but significant gaps remain. Researchers have recognised the benefits of including financial and non-financial indicators. Yet, more research is required in this area to offer hotel organisations better approaches to the management of their performance. We conclude by identifying three research gaps.     

Measuring hotel performance using the balanced scorecard: A theoretical construct development and its empirical validation

A key contribution to the performance measurement literature was the introduction of the balanced scorecard (BSC) in 1992. However, despite its appealing rationale in capturing different aspects of performance and its wide and increasing use in a range of industries, there has been no rigorous psychometric development and testing of performance scales from the BSC perspective in the hospitality industry. In order to contribute to fill this gap, this study adopted a two-stage design seeking to develop and test a scale of organizational performance using the BSC in the hotel sector. In Stage 1, the authors generated and refined the scale items, recognizing unique characteristics of the hotel sector. In Stage 2, the scale has been assessed in terms of dimensionality, validity, and reliability. The findings suggest that managers do make a meaningful distinction between five aspects of hotel performance. Unexpected results, contributions, limitations, directions for future research, and managerial implications are all discussed.     

On revenue management and the use of occupancy forecasting error measures

This study aims to draw the attention of the revenue management academic community to inherent problems in forecasting accuracy measurement, and to initiate a critical discussion about forecast quality assessment in hotels. An exhaustive, literature-based set of seventeen forecasting accuracy measures was applied to hotel daily occupancy forecasting data of 2043 pairs of computer and human forecast/actuals, across multiple forecasting horizons. The empirical analysis demonstrates endemic inconsistencies across the accuracy measures, and a plethora of theoretical and practical challenges with regard to total hotel, as well as customer segment level forecast accuracy assessment. The analysis illustrates the difficulty of interpreting conflicting results, as well as issues like level of data aggregation and multiple forecasting horizons. The paper concludes by briefly discussing a more comprehensive approach to hotel forecasting quality assessment framework and serves to warn hotel revenue management academics, practitioners and solution providers against the unconsidered use of accuracy measures.