Outsourcing and role stress: An empirical study of hotel spa managers

Hotel owners and managers are increasingly outsourcing their spas to specialist firms that oversee the spa's operations and personnel. In such spas the assume the role of boundary spanners as they are responsible for overseeing the operational relationship between the hotel and spa companies. In this role, they are responsible for trying to satisfy the hotel and spa companies’ often contradictory expectations while also often adhering to two sets of operating guidelines. As a result, they may experience different levels of role conflict and role ambiguity than spa managers who oversee spas managed by the hotel. The results of a questionnaire completed by 166 hotel spa managers from spas managed by hotels and those managed by third parties found greater levels of these role stressors in managers of outsourced hotel spas. Based on these findings, research suggestions and managerial implications are discussed.     

Management fees and hotel performance in the U.S.

A management company takes care of the day-to-day operations of a hotel and thus has a great amount of influence on the hotel's financial performance. Adopting models from O’Neill, Hanson, and Matilla (2008) and Hua, Morosan, and DeFranco (2015), a set of empirical models, with same-store data from 1471 hotels from 2011 through 2017, was used to test the impact of the total management fee and its subset of the base management fee and the incentive management fee on the hotels' rooms revenue and gross operating profit while controlling for potential confounding factors including chain scale and location.This is the first paper to empirically validate the value of a management contract for both the owners and the management company, including the positive and significant effects that base management and incentive management fees have on hotels’ room revenue and gross operating profit.     

Lifestyle businesses: Insights into Blackpool's hotel sector

The vast majority of firms in the sector are micro-businesses employing 10 or fewer staff. Indeed many are so small as to employ no permanent staff at all. Those running these businesses are not classical entrepreneurs driven by a need to maximise profits and build a business empire. Many are best described as lifestyle entrepreneurs, their key motives are more associated with improving their quality of life. This paper reports on the owners of a significant sample of Blackpool hotels. The majority have sold a domestic property to buy the hotel. Few have any prior hotel experience, or small business experience, for that matter. The linkage between commercial and domestic provision of meals and accommodation convinced many of these interviewees that they had the skill sets required for hotel ownership and management. The paper also confirms earlier findings that a subtantial minority withdraw from the hotel business in their first year. The lack of training in the business aspects of the hotel operation has serious implications for the quality of hotel operations in places like Blackpool, because a significant segment of hotel stock is being managed by these lifestyle entrepreneurs who are not primarily concerned with commercial objectives which prioritise service quality as a way of generating profits and growth.     

An investigation of AAA diamond rating changes on hotel performance

Despite previous attempts to link hotel rating systems to performance, no prior study has examined the effects of changes in Diamond ratings. Considering the variability in Diamond ratings, and the fact that hotels may gain or lose a Diamond over time, it is important for hotel properties to assess such outcomes on key performance indicators (KPIs). Hence, this study examines the influence of Diamond rating changes on hotels’ KPIs (i.e., occupancy rate, average daily rate, and revenue per available room) and competitive set indexes, which allow to benchmark a property’s performance against a designated competitive set. Results suggest that in both the short and long-terms, significant differences in KPIs and indexes exist between properties which benefited from an increase in Diamond rating, versus those which suffered from a drop in Diamond rating. Furthermore, despite such improved performances over time, improvements in hotels’ KPIs and indexes tended to diminish over time. The current findings yield important contributions to the literature regarding the effects of hotel rating changes on KPIs and indexes and provide valuable insights to hotel owners and operators.     

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.     

Total quality management,corporate social responsibility and performance in the hotel industry

Total quality management (TQM) and corporate social responsibility (CSR) are relevant management philosophies in the hotel industry to be able to generate a sustainable competitive advantage. This paper examines how the implementation of both TQM and CSR influences the results of hotels’ stakeholders as an antecedent of business performance. An empirical study of a sample of 141 Spanish hotels from the Andalusian region shows that the adoption of such approaches improves the capacity of hotels to create benefits for their stakeholders, and these results have a positive effect on hotel performance. The study also provides evidence of the complementarity of both management philosophies as TQM can enhance the development of CSR.     

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 dynamic capabilities explain hotel performance?

This research study explores the relationship between three dynamic capabilities and their impact on hotel performance. Specifically, we examine the relationship between human resource management (HRM), quality management (QM) and sustainability. In addition, we analyse how QM and sustainability explain hotel performance measured by occupancy rate, average daily rate (ADR) and revenues per available room (RevPAR). These capabilities can generate income, enabling hotels to adapt as quickly as possible to the changing environment. Findings show a significant relationship between HRM, QM and sustainability. The relationship between QM and hotel performance and between sustainability and hotel performance is fully mediated by the differentiation competitive advantage. Our results represent an advance in hotel theory and management because they integrate HRM, QM and sustainability, and show their ability to be a source of competitive advantage and profitability.     

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.     

Impact of hotel information security on system reliability

While information systems are very essential to a hotel's operations, the need for obtaining information security is emerging. Hotels acquire customer information in databases and utilize information systems to support various marketing activities. This study pursues an empirical examination of the impact of information security on the system reliability of Hotel Information Systems (HIS) through perceptions of hotel employees who use and manage HIS. An information security index for the hotel industry was developed based on previous research and practices current in the industry. Data was obtained from 4-star and 5-star hotels. Findings revealed eight information security factors affecting system reliability in hotel operations. Findings also indicate that management types and styles of hotels moderate in the relationship between information security and system reliability. Implications of the findings were discussed in relative to the hotel industry.     

Climate change adaptation in Cambodia's coastal hotel sector: An analysis of adaptation measures and hotel characteristics

After decades of profound challenges Cambodia has seen twenty years of stability and a flourishing tourism industry, however, it has also been identified as highly vulnerable to climate change thus putting the country's long-desired economic development at risk. Sustainable Development Goal 13 ‘Climate Action’ is critical for the continued economic success of Cambodia's vulnerable coastal tourism sector, but little is known about the hotel sector's adaptation responses and the differences between key hotel characteristics such as star rating, size, ownership and length of operation. This article examines the adaptation actions by 50 Cambodian coastal hotels by distinguishing between five adaptation categories. Subsequently, the analysis is deepened through a comparative analysis of key hotel characteristics. Although adaptation measures varied considerably between hotels they were more comprehensive and numerous than expected. Furthermore, patterns emerged that saw large hotels apply high levels of adaptation while budget and Khmer-owned hotels reported limited adaptation measures.     

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.     

What is happening to flexible workers in the supply chain partnerships between hotel housekeeping departments and their partner employment agencies?

The primary aims of this paper are two-fold: first, to consider the potential which exists for hotel management to establish a firm relationship with employment agencies to contribute to the deployment of right numbers and skills at the right place; and second, to assess whether both the hotels and employment agencies treat the flexible workers as a resource, or as a cost. The findings, based on 84 qualitative interviews, indicate that: there is a solid economic rationale that is likely to bind the incidence of flexible working practices to the wider recruitment strategies of the hotels; that the flexible firm models do not provide a full account of supply chain relationship between hotels and their partner agencies; and that the current management approach to labour flexibility conforms to a ‘hard’ version of HRM in that labour is treated as a variable cost. The findings suggest that flexible workers are highly likely disadvantaged in terms of access to training, career development, remuneration and other work-related practices than core employees. Overall, the data reveals that both dimensions of cost and, to a lesser extent, quality of the workforce provided by the employment agencies are central to the interests of the hotel management, thereby forming the backdrop to their decisions on whether to maintain these supply chain relationship with their partner agencies. Finally, the implications of these findings are discussed.     

Is more better? The relationship between meeting space capacity and hotel operating performance

This study examines the effect of meeting space capacity on hotel operating performance. We use Resource-Based View (RBV) of the firm as the theoretical foundation. We employ a national-level dataset with more than 20,000 hotels in the United States for the 2007–2012 period. We find that meeting space has a non-linear effect on hotel operating performance. That is, at low levels of meeting space, meeting space capacity is negatively related to hotel operating performance. At high levels of meeting space, meeting space capacity has a positive influence on operating performance. These findings provide insights for hotel owners, developers and practitioners in planning hotel meeting space capacity.     

Evaluation of hotel brand competitiveness based on hotel features ratings

Understanding the competitiveness of hotel brands is important for hotel managers to shape their brands and initiate effective marketing strategies and business developments. However, evaluating hotel brand competitiveness is challenging due to the complexity of information involved. A hotel brand often comprises many hotels with different performances. Hotel brands are also evaluated against multiple hotel features, thereby making the application of traditional evaluation techniques impractical. This paper introduces a novel technique for automatically evaluating the competitiveness of hotel brands based on probability distribution and earth mover’s distance. We demonstrate the effectiveness of our proposed method by conducting a case study that involves major hotel brands in Hong Kong. The proposed method can be applied in various contexts and can help researchers and managers evaluate the competitiveness of hotels as well as other branded products in the hospitality and tourism sectors.     

Survival analysis of the Spanish hotel industry

The main objective of this study is an analysis of survival in the Spanish hotel industry. We used a sample of 1033 hotels opened from 1997 to 2009, examining financial and non-financial variables, including size; location; type of hotel; management, economic and financial structure and the year they opened, whether during an expansion or crisis period. The methodology included an econometric analysis of survival, using the non-parametric Kaplan–Meier estimator of constructed variables, in order to detect the particular influence of each variable. Semi-parametric regression was done with the Cox proportional hazards model, confirming which variables clearly influenced the survival of hotels and which signs existed for each analysed variables’ influence. The survival of hotels depends on their size, location, management and launch in a time of prosperity. However, survival rates were not significantly tied to particular types of hotels or configurations of their economic and financial structures.     

Quantifying the economic impact of COVID-19 on the U.S. hotel industry: Examination of hotel segments and operational structures

The COVID-19 pandemic has had substantial negative impacts on the global economy. While all sectors of the economy are expected to be adversely affected, the economic implications of this pandemic for the hotel industry have not yet been widely investigated. The purpose of this study is to examine the extent to which the COVID-19 pandemic has affected the U.S. hotel industry. The results showed that daily room OCC, ADR and RevPAR have plunged about 74%, 47% and 86%, respectively. Although the impact is observed across all hotel segments, economy-scale hotels were more resilient, whereas luxury-scale hotels experienced the largest decline. Also, chain-managed hotels are the most affected by the COVID-19 pandemic as compared to franchise and independent hotels. Quantifying the magnitude of this impact, we found that the U.S. hotel industry's revenue losses accumulated to over $30 billion between March-2020 and May-2020. Implications for practitioners, policy-makers, and researchers are discussed.     

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.     

Exploring the antecedents of intentions to leave the job: The case of luxury hotel staff

The aim of this study is to assess the antecedents of employee’ intentions to resign from their jobs in luxury hotels in India. Two aspects are considered in this context: firstly, the employees’ enthusiasm for the profession and organisation, the nature of the work and its impact on social and family life. Secondly, their level of satisfaction with the job in terms of organisational loyalty, relationship with supervisors, job security, earnings and additional benefits. A theoretical model (see Fig. 1) and seven hypotheses are tested to indicate whether the employees’ level of agreement with statements about the job and their level of satisfaction with the job will impact their intentions to quit. The study further examines if any current employees intend to leave their job. The term luxury hotel is used to represent 5 star and 4 star hotels of India.Findings from the analyses of 884 responses suggest that, when considering intentions to resign from the job, a negative relationship is found between professional and organisational enthusiasm and perceptions about the work being stimulating. No support was found for a positive relationship between the extent work impacted social and family life and the intention to quit. However, results supported the notion that the employee's organisational loyalty has a negative effect on his/her intention to resign from the job. Our findings contradict several other studies in that they suggest the employee's intention to resign from the job increases as job security and earnings improve. The study is distinctive as it explores intentions luxury hotel employees in India to leave their jobs; three is little evidence in the wider literature of similar attempts in the context of the Indian hotel industry. The outcomes have implications for both theory and practice as this is the first such major study in the context of the hotel industry in India where there is a population of over a billion people and an expanding hotel industry.     

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.