Evaluating the financial performances of Korean luxury hotels using data envelopment analysis

In the wake of catastrophic natural disasters and rising threats of terrorism, the hotel industry has been hit hard by declining revenues and increasing competition. To avoid such a downward spiral, the hotel industry should find remedies to make its operations lean and robust. These remedies may include: niche marketing, reduced debt ratio, increased profit margin, and continuous improvement of hotel service quality. These remedies, however, would be of no avail, unless the hotel management finds a way to compare its financial strengths and weaknesses against its competitors. In an effort to help the hotel management enhance its financial efficiency and price leverage in the increasingly competitive hotel industry, this article aims to develop a meaningful set of financial benchmarks that will dictate best practices and shape up a successful hotel business model. Thus, we propose a data envelopment analysis (DEA) that is proven to be useful for measuring the financial efficiency of various profit or non-profit organizations. Using the examples of first-class, luxury hotels in Korea, this article illustrates the usefulness of DEA for the continuous improvement of hotel business practices.     

An efficiency and effectiveness model for international tourist hotels in Taiwan

Taiwan's economic growth has improved the quality of life and raised the standard of the tourism industry in Taiwan. This paper selects the hotel industry, in order to assess how international tourist hotels operate their business by applying data envelopment analysis (DEA) to measure their operational efficiency and effectiveness. By using the DEA model to assess the results of the relative efficiency and effectiveness of hotels to improve their operations, the paper also aims to rank the hotels by applying the VlseKriterijumska Optimizacija I Kompromisno Resenje method combined with entropy weight among the criteria.     

Does quality management improve performance or vice versa? Evidence from the hotel industry

This paper has several aims: (a) to identify an empirical taxonomy of quality management (QM), (b) to assess whether more advanced QM hotels achieve better performance levels and (c) to analyse whether hotels with better performance levels have more advanced QM levels. This paper contributes to identify a taxonomy of QM in hotels showing the association between a particular level of QM and different performance dimensions. In addition, the paper sheds light on the possible selection effect in the hotel industry. The study finds that hotels with higher QM levels have better hotel guest satisfaction and employee satisfaction, efficiency and better business performance. It also shows that hotels with better performance levels develop QM to a greater extent. Accordingly, QM level is one factor among others that explain better performance levels in hotels. Also, good performance can facilitate the implementation of QM practices.     

我国经济型酒店外包业务的功效及管理策略

经济型酒店的经营突出专业化与社会化的特点,主要以客房服务为其核心业务,其他如餐饮、洗衣等为配套服务。为了提高经济型酒店的运作效率,需采取非核心业务外包的方式。在分析经济型酒店实施外包的目的和潜在风险的基础上,提出经济型酒店要明确实施外包的条件、科学合理的选择外包专业公司、签订完善的外包合同,明确合作双方的责权利的管理策略。     

酒店企业相对效率的定量评价方法

中国酒店业迅速增长的规模总量与其经营效益持续下滑形成鲜明的对比,随着外商投资政策壁垒的消除,国际饭店集团已经加快进入中国的步伐,以“网络化、国际化、品牌化”为主题的酒店业的竞争更加激烈。提高酒店的投入产出比,提高经营效益是实现酒店业可持续发展的根本途径。     

浅谈我国经济型酒店的发展现状与发展策略

随着我国假日经济引发的国内旅游的兴起,使人们对经济型酒店的需求骤然升温,因此为经济型酒店的发展带来了新的商机。在分析我国经济型酒店发展中存在问题的基础上,阐述经济型酒店的市场经营环境,进而提出了我国经济型酒店的发展策略     

Strategic Choice of Sales Channel and Business Model for the Hotel Supply Chain

In this paper, we study whether a hotel should cooperate with an independent online travel agency (OTA) to sell rooms, and, if yes, using what business model—the Merchant model or the Agency model. In the Merchant model, the OTA purchases rooms at a discount wholesale price and sells them at a profit, but takes on the risk of having unsold inventory. In the Agency model, the OTA passes reservations booked by its customers to the hotel and receives an agreed commission fee on each transaction. We demonstrate that there is no one strategy tailored to all situations: the choices of channel and business model are closely tied to certain conditions, like the hotel’s room capacity, consumer acceptance of the OTA channel, the increase in market size with the OTA channel and the commission rate charged by the OTA. The hotel’s equilibrium strategy indicates that adding the OTA channel does not increase the hotel’s profit if the hotel’s capacity, the increase in market size with the OTA channel, and consumer acceptance of the OTA channel are relatively small. Regarding the selection of business model, in general, larger hotels offered a larger increase in market size with the OTA channel, and where the commission rate is low, will prefer the Agency model; otherwise hotels will prefer the Merchant model. Managerial guidance regarding channel and business model selection is provided.     

酒店管理专业教育发展趋势展望

21世纪的酒店行业将迎来更为广阔的发展空间,需要更多的酒店管理专业人才。专业人才在教育培养的过程中,应当顺应整个行业发展的趋势,传统高校酒店管理专业人才培养,由于教学的相对落后,导致了人才供给与酒店需求的严重脱节。酒店管理专业在人才教育培养过程中,需要在包括教育设施、教学内容、教师队伍、学生就业与创业等诸多方面加以改进,为实现酒店行业的健康、持续、稳定发展提供人力资源保障。     

危机中的高端酒店

<正>受金融风暴冲击,当经济型酒店喜笑颜开的时候,高端酒店的巨头们纷纷愁眉不展,只能是咬着牙来自降身价。上海旅游事业委员会提供的数据显示,上海高端酒店入住率下跌是从2008年8月开始的,单月入境旅游者人数只有20万人次。受此影响,各大酒店的平均入住率下跌到54.6%,是20年来的最低。今年1~3月,上海五星级酒店出租率45.9%,同比下降13%,     

From sustainability to customer loyalty: A case of full service hotels’ guests

More hotels adopt ecofriendly practices and implement innovative technologies to reduce carbon footprints and increase a viable green image. Many hotel guests value hotels that offer up-to-date technology and demonstrate sustainability efforts through various sustainable programs. Previous studies investigated how ecofriendly practices would induce higher customer loyalty and increase the image of a hotel brand in the past decade and reported the benefits of implementing green efforts in hotels. This study, which included distributing surveys to over 1200 existing hotel guests in 2013–2014 in the southeastern United States, examined how technologies, innovations, and sustainable-effort-related factors have an impact on customer perceptions, selection decisions, experience, and post-experience.     

Influence of Organizational Form and Customer Type on Online Customer Satisfaction Ratings

In this paper, we explore the impact of the organizational form (company‐owned versus franchised) and the type of customer (nonbusiness versus business) on online consumer‐generated satisfaction ratings in the hotel industry. Our empirical study deals with 6,348 TripAdvisor reviews regarding stays at one of 134 hotels of a plural form chain located in a Western European country. Our main finding reveals that the type of customer moderates the relationship between organizational form and customer satisfaction; business travelers having higher satisfaction with franchised hotels than company‐owned hotels in terms of satisfaction. We discuss the implications of these findings for the management of plural form chains.     

Benchmarking sales staffing efficiency in dealerships using extended data envelopment analysis

This study presents an approach to benchmark dealer performance in a business-to-business setting through a rigorous efficiency analysis of sales staff allocation. Using a series of basic and extended data envelopment analysis (DEA) models on data collected from a survey of self-reported financial and statistical information, this research assesses dealer efficiency and compares the efficiency scores to traditional financial benchmarking. Findings support the minimization of outsourcing services that are customer interactive and highly specific to a transaction to differentiate the dealer from its competition. Integrating the results from DEA models, manufacturers obtain a comprehensive view of allocating sales staff to increase dealer efficiency and generating a complementary approach to traditional financial ratio benchmarking in determining best practices to other dealers.     

Managing Flexible Working in Hotels

Flexible working practices have apparently helped manufacturing industry make productivity improvements over and above the service sector. These manning practices may offer opportunities for the hotel industry to improve its own productivity and at the same time counter the industry's reputation for providing poor conditions of employment. This article discusses the results of research conducted in two large hotels into the attitudes of management and employees to the introduction of such practices. Although some barriers to flexible working are identified, the research also highlights that opportunities do exist for successful implementation of these approaches. However, the major obstacle in adopting flexible working would appear to be the management culture of the hotels studied and the industry in general.     

Technology revenue management system for customer groups in hotels

This paper discusses revenue management; a technique that focuses on decision making that will maximize profit from the sale of perishable inventory units. New technologies management plays an important role in the development of revenue management techniques. Each new advancement in technology management leads to more sophisticated revenue business capabilities. Today decision support revenue management systems and technologies management are crucial factors for the success of businesses in service industries. This paper addresses the specific case of customer groups in hotels. This paper introduces a new decision support system that sets the revenue maximization criteria for a hotel. The aforementioned system includes a set of demand forecasting methods for customers and addresses a general case considering individual guests and customer groups. The system also incorporates deterministic and stochastic mathematical programming models that help to make the best decisions. The actual revenue depends upon which reservation system the hotel uses. A simulation engine makes a comparison between different heuristics of room inventory control: the results include performance indexes such as occupancy rate, efficiency rate, and yield; it compares results and chooses one of them. The system proves its suitability for actual cases by testing against actual data and thus becoming an innovative and efficient tool in the management of hotels' reservation systems.     

我国国有酒店改制和商业模式分析

针对我国国有酒店业现状进行分析,国有酒店的改制势在必行。国有酒店企业改制是把原来潜藏的资源挖掘出来,在总体经营方略上了一个大台阶,是一个新的利益关系的调整,是为整个行业提供了一个发展空间。借鉴国际酒店集团在我国的运营模式及美国酒店业整体运营情况和管理模式。指出我国国有酒店业要想发展必须与资本市场相结合,并获得国际资本市场的认同,建立适合我国国情的商业模式,才能在激烈的市场竞争中立于不败之地。     

产权、竞争、中国饭店业绩效及改进路径研究

本文分析表明我国饭店业是国有饭店主导的竞争性行业,国有饭店主导和竞争性行业的不相容性是造成我国饭店业整体绩效水平较差的根本原因。根据这一分析结论,本文提出我国饭店业最终目标是建立为非国有饭店主导的垄断竞争性行业,改进我国饭店业整体绩效的具体路径是积极推进国有饭店退出和实施饭店集团化经营。     

基于DEA模型的酒店经营效率分析

运用DEA方法对酒店在运营中效益及成本之间的相对有效性进行了分析,通过对酒店投入-产出比的C2R模型的定量计算,有效辨别出酒店不同月份运营的DEA有效及非DEA状态,并据此分别给出了酒店未来投入-产出的调整方向,为酒店管理者的决策提供理论依据。     

Improving competitiveness through city marketing in Spanish hotels

The degree to which hotels can be competitive depends upon some very important factors, such as city promotion initiatives and city knowledge networks. The purpose of this study is to analyse and present how a city marketing procedure could become an effective tool for knowledge development and the competitiveness of Spanish hospitality hotels. Our findings support the view that in order to implement a marketing city programme oriented towards hotels, municipal managers need to provide and support knowledge creation networks. Furthermore, a hotel's size is significantly associated with levels of city promotion initiatives. Therefore, to consolidate marketing city results among small hotels, municipal managers need to reinforce the environment in which hotel managers operate and provide them with the means to survive in the context of a competitive knowledge-based economy.     

Governance structures in the hotel industry

This study investigates alternative governance forms in the hotel industry. Agency theory maintains that the need for control over service quality, financial risk, and the market environment affect the choice of governance form. Prior agency research emphasizes alternative governance structures that principals employ, given local market conditions, agent incentives, and risk preferences. The study augments the established principal-agent perspective with a discussion of entrepreneurial motivations to join hotel alliances. The study analyzes the choice between independent ownership and affiliation with a voluntary chain as well as the choice between integration and franchising. Data analyses from 650 hotels indicate that the hotel size, amenities, population, and distance to headquarters influence governance.     

‘Gone to Gowings’ - An Analysis of Success Factors in Retail Longevity: Gowings of Sydney

Low productivity within service industries has been a major concern, but this situation is unlikely to improve without a general change in the way productivity is measured and managed. This paper aims to illustrate the value of stepwise data envelopment analysis (DEA) for measuring and benchmarking productivity. The issues and problems regarding productivity measurement as well as the advantages of using DEA in productivity measurement are analysed. The article extends current DEA applications by developing a stepwise approach to DEA. The latter technique combines correlation and DEA analysis for developing robust models and sound productivity measurement. The advantages of the proposed methodology are illustrated by applying it to a dataset of three-star hotels in the UK. Six inputs and three outputs are identified as the factors affecting rooms division efficiency in three star hotels.