Business Traveler Satisfaction with Hotel Service Encounters

Abstract

This study examines customer satisfaction with a series of hotel services. Five service encounters were examined in a sample of business travelers (n = 140) who had stayed in Hong Kong hotels. Overall satisfaction and repurchase intention were differentially impacted by the various service encounters. Business center encounters had the greatest effect on business traveler satisfaction, followed by check-out and check-in encounters. Interestingly, room and restaurant encounters had the least impact on satisfaction. The delivery of good core services alone cannot guarantee customer satisfaction. Hotels must also pay attention to peripheral service delivery, because these encounters help to shape the customer's overall level of satisfaction and repurchase intention.     

The Importance of Hotel Attributes in Contributing to Travelers' Satisfaction in the Hong Kong Hotel Industry

Abstract

This study surveyed 402 international travelers to explore their satisfaction levels towards service and facility quality in three Hong Kong hotel market segments, High-Tariff A, High-Tariff B and Medium Tariff. Six perception dimensions were extracted from 33 hotel attributes by a factor analysis. All six dimensions had a significant impact on the overall satisfaction of travelers with service quality and facilities in the three Hong Kong hotel market segments. Quality of Staff Performance was the most influential factor followed by Quality of Room Facilities, Value for Money, Variety and Efficient Services, Business Related Services, and Safety and Security respectively. It was found that travelers had the lowest satisfaction level towards the Medium-Tariff hotel segment. By identifying the most influential hotel dimension in influencing travelers' satisfaction levels, hoteliers will be in an advantageous position to formulate tactics to meet the changing needs and expectations of travelers. Implementing human resources training that emphasizes the fact that service quality is part of each employee's job should have a significant impact on guest re-purchase intention. The importance of value segmentation cannot be overlooked by hoteliers. Travelers will continue to expect hotels to provide more value-for-money services and facilities and they are expected to shift their purchasing decision to an economic value basis.     

Energy use and management in hotels in Hong Kong

This paper reports on a study of energy use in 16 quality hotels in Hong Kong. An overview of energy use in these hotels is firstly presented, and this is followed by a detailed analysis of energy use in one of the 16 hotels. The overview indicates that the energy use situation in hotels in Hong Kong is very much diversified. The total energy use in a hotel is dominated by electricity, with the greatest portion for air conditioning because of sub-tropical climate. A detailed multiple variable regression analysis indicated that a number of hotel operating parameters as well as climatic condition can affect electricity, diesel and gas use in a hotel building. In order to achieve both operating cost saving and environmental protection, it is recommended that an energy management programme be established, and key elements of such a programme based on the experience of implementing energy conservation strategies in hotels in Hong Kong are highlighted.     

Hotel employees’ perceptions on corporate social responsibility: The case of Hong Kong

This study examines the perceived importance of corporate social responsibility (CSR) attributes of Hong Kong hotel employees and their hotels’ performance on those attributes, and to determine underlying performance factors that ultimately lead to the perceived overall CSR effectiveness of hotels. The importance–performance analysis results show that Hong Kong hotels generally performed well on 17 out of the indicated 30 CSR attributes. Furthermore, the attribute “promote innovation in products and services” was considered to be overkill, and another attribute, “demonstrates a commitment to the environment,” requires the immediate attention of hotels. Six performance factors were extracted and Hong Kong hotels performed best in the area of finance. The factors “state of affairs” and “novelty” positively and significantly affected employees’ perceived overall CSR effectiveness of their hotels. Almost 70% of the respondents agreed that Hong Kong hotels had been effective in carrying out their CSR. Hotels in Hong Kong should find our study results helpful in pinpointing CSR attributes considered of various importance and performance levels from the perspective of one of their important stakeholders, their employees. In particular, the relatively low awareness toward the environment of both the employees and the hotels should alert the hotel management to invest greater efforts in environmental protection.     

The Response of Hotels to Increasing Food Costs due to Food Shortages

During 2008–2009 the hotel industry in Hong Kong had to respond to a steady price increase in general food items and in basic food commodities. As most hotels in Hong Kong predict their food cost budgets a year in advance, these sudden and unexpected increases in food commodities came at a time when there was a downturn in the global economy in the wake of the financial crisis and a worldwide influenza A (H1N1) epidemic. There have been articles published in hospitality and tourism journals that have discussed the issue of food cost and control in hotels resulting from poor storage and purchasing, portion control, and preparation and production methods. However, none of the previous studies has examined the sudden and rapid increases in the cost of foods and the impact that this has had on the hotel industry. The measures adopted by Hong Kong hotels of different tiers to control or reduce expected food costs are analyzed in this study. This study employed a cross-sectional exploratory design, encompassing in-depth personal interviews with food and beverage managers and executive chefs in high-, mid- and low-tier hotels in Hong Kong. Empirical findings revealed that mid- and low-tier hotels found the increases in commodity prices challenging and thus employed innovative methods to combat rising food costs. High-tier hotels were more concerned about satisfying customers' needs by maintaining high-quality food products and services. The findings indicate that hotels and restaurants at all points of the market adopted functional strategies to increase their efficiency and profitability. Based on the operating experience of existing hotels, this study demonstrates that enhancing the quality of suppliers' commodities, good staff communication and training practices, and innovative ideas can improve a hotel's financial situation.     

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.     

Can Response Management Benefit Hotels? Evidence from Hong Kong Hotels

With the growing influence of online reviews, more hotels are adopting online response management, but whether this works and benefits a hotel has rarely been studied. In this research, we study the impact of response management on hotel online ratings using data retrieved from TripAdvisor with a focus on Hong Kong hotels. We find that (1) high class hotels are more likely to adopt response management; (2) there is no significant difference among different hotel classes in terms of response rate; and (3) targeted response management has a significant positive effect on hotel ratings. In addition, Asian customers tend to give lower ratings than Western customers. We outline specific implications for hotel managers and their online management and offer suggestions for future research based on the empirical findings.     

An analysis of the relationship between market orientation and business performance in the hotel industry

The purpose of this study was to conduct an investigation into the link between market orientation and business performance in the hotel industry. Data were generated from 63 hotels in Hong Kong. The findings indicated that market orientation is positively and significantly associated with the marketing performance and financial performance of a hotel. The implications of the findings are discussed and the limitations of the study as well as future research directions are addressed.     

Hotel controllers in the 21st century—a Hong Kong perspective on desired attributes

This empirical study carried out in Hong Kong set out to discover how aware are practicing on-property hotel controllers (OPHCs) and hospitality management graduates of desired attributes for the job of a hotel financial controller. It identified profiles of 21st century OPHCs ‘painted’ by practising OPHCs (practitioners) and graduates and matched these with profiles from recruitment specialists (recruiters) and studies reported in the literature on unit controllers in business generally and hotels specifically. The approach to the research, consisted of a quantitative analysis of secondary data that identified interviewees (practitioners, graduates and recruiters) and themes that were then investigated in primary data collection by qualitative methods (content analysis of discourse). The study found that graduates needed to better inform themselves of desired attributes (qualifications, skills and personality). However, practitioners and recruiters formed a consensus on profiles, both perceiving a distinction in profile between OPHCs in ‘international’ type hotels and ‘other’ types of hotel. Perceived attributes of OPHCs in ‘international’ hotels showed many similarities with their counterparts in business generally.     

Employees' Perceptions of Performance Appraisal

ABSTRACT

In spite of the importance of performance appraisal for hotels to evaluate their employees, the existing hospitality literature largely covers studies in Western countries only. Prior studies have rarely investigated the issue of performance appraisal in the context of China, the world's largest potential market for generating tourists and receiving tourists. This paper reports on a study that used focus group interviews with employees in an upscale hotel in Hong Kong, a special administrative region in China, on their views of the appraisal system that has been used. Research findings reveal that the system could be further improved.     

Optimizing Room Capacity and Profitability for Hong Kong Hotels

This study estimates optimal guestroom capacity for the Hong Kong hotel industry during 2010–2013 using a single-period inventory model. Using Hong Kong hotel operational data for the period 2000–2009, we identify an issue of serious overcapacity of Hong Kong hotels for 2010–2013, the severity of which ranges from 30.6 to 40.7% above the optimal hotel guestroom counts derived from our study. We further estimate an optimal advertising budget as a percentage of total revenue (3.78%) in maximizing profitability. Attention is called for stakeholders to carefully reexamine existing and future hotel development plans and work on pushing up future room demand. The implications of our study are also discussed.     

Training practices in the Hong Kong hotel industry: Managerial and executive perspectives

ABSTRACT

Technology is expected to be adopted for the benefits of two types of customers in the hotel industry—external customers for providing better guest experience and internal customers for upgrading skills and knowledge. A survey was used in this study. Training with technology is not the current trend, and on-the-job training is still being adopted frequently and is preferred by executives and managers. It is unpredictable how long it will be before Hong Kong hotels take complete advantage of computer-based training. Minimum yearly training hours and training budgets should be benchmarked and be transparent for a better provision of training.     

Investigation of Social Media Marketing: How Does the Hotel Industry in Hong Kong Perform in Marketing on Social Media Websites?

The purpose of this study is to investigate the extent to which social media marketing is being utilized in the Hong Kong hotel industry. Marketing performance of 67 hotels in Hong Kong on 23 social media sites was evaluated according to 18 criteria adapted from past studies. The results indicate that hotels generally have a poor performance in using social media to learn about customers. Major problems regarding the hotels' social media marketing efforts are identified. Implications behind these problems and recommendations for improvement are made accordingly.     

The Relationship Between Demographic Characteristics and Socialization Outcomes Among New Employees in Hong Kong Hotels

Abstract

High turnover among new hotel employees has become a major concern for Hong Kong hotel managers. Previous studies have shown that the demographic characteristics of employees are related to their subsequent behavior and attitude. However, there is little vigorous discussion on new employees in particular. This study examines the relationship between the demographic characteristics of new employees and their socialization outcomes in the Hong Kong hotel industry. Its findings show that there are significant differences between the effects of certain demographic characteristics on job satisfaction, organizational commitment and turnover intentions. Some recommendations for maintaining new employees' productivity and minimizing turnover intentions are made for hotel managers' consideration.     

Marketing in the Next Decade

Abstract

The hotel industry in the United States has undergone many changes in the last couple of decades. Developments such as consolidation, brand proliferation and an increased use of technology have had an impact on how hotels go about marketing their products. With change being inevitable, it is important to attempt to predict what will happen in the future that will further impact the hotel business. This article reports a qualitative study of the future of marketing based on the opinions of hotel industry executives. Predictions are that the industry will continue to be volatile, consolidation will continue, consumer satisfaction will become even more important and technology will play an increasing role. Other trends and concerns are discussed.     

Predicting Hotel Choice Decisions and Segmenting Hotel Consumers: A Comparative Assessment of a Recent Consumer Based Approach

Abstract

Given the intensified competition to attract today's increasingly discerning hotel guests, it is vital for hotel managers to understand the set or bundle of hotel attributes which are demanded by the potential traveler. Unfortunately, marketing research in hotels is still mainly confined to the analysis of guest-related data collected during registration or from guest comment cards. These data, however, have little merit as predictors of customer behaviour and cannot answer the “what if” questions. In recent and past research in hospitality and tourism, researchers have demonstrated the use of product attributes in predicting consumer preferences and segmenting markets (Bell and Morey 1997; Kim 1996). In undertaking this approach to behavioral study, many researchers in the field have been attracted to use conjoint attribute part-worths, (the judgmentally quantified attribute valuesderived from conjoint modeling. This study attempts to utilize the compositional self-explication model as a reference model to assess the comparative superiority of the conjoint model in predicting client preferences among travelers to Hong Kong. It also seeks to reveal subgroup preference variations by using two segmentation approaches. The overall finding indicated that the most important hotel attribute sought by all respondents is Room Rate, followed by Star Rating, Location, Brand and Room Type. In terms of market segments, the results revealed similar preference profiles among leisure, short-haul and infrequent travelers as one group and business, long-haul and frequent travelers as another.     

Inbound Travelers' Selection Criteria for Hotel Spas in Hong Kong

With a growing number of travelers enjoying spa experiences, it is vital that hotels understand their preferences. As Hong Kong has a high visitor inflow and is in the preliminary stages of hotel spa development, an examination of the selection criteria used by inbound travelers when choosing hotel spas should provide Hong Kong hoteliers with the information needed to further develop and refine their facilities. This study examines the selection criteria that inbound travelers use to gain insight into how demographic factors and travel characteristics affect their spa-related decisions. A measuring instrument was developed based on in-depth interviews of spa industry professionals and secondary data. The results reveal that relaxation, pampering, and beautification were the main reasons that people visited hotel spas; with the three most important major selection dimensions being therapists, price, and product and treatment types. Of the 28 selection criteria studied, professional skills, product and service knowledge, sense of privacy, range of facilities, and product branding were the most important attributes. The implications of these findings and directions for future research are discussed here.     

Effectiveness of the hotel websites in Singapore: A perspective from Business‐to‐Business (B2B) organisations

Internet marketing in hotels allows potential users to learn about the hotels, to tour hotel facilities and to compare prices among other benefits without directly interacting with a hotel representative. For some users, Internet is the first and only channel consulted when booking hotel accommodations. In the present age, Internet is increasingly becoming both an opportunity and a challenge for hotel marketers. The opportunity lies in reaching users directly through Internet sites. The challenge is to get the guests’ attention long enough to tell the marketers’ story (Connolly, Olsen and Moore, 1998). It has always been controversial as to how effective Internet marketing can be. Both firms and researchers have indicated that the measuring of effectiveness of Internet marketing is a multidimensional question. This study sought to examine the effectiveness of business‐to‐business Internet marketing in the hotel industry in Singapore through analysing the differences between the travel agents expectations of service and hotels’ understanding of those expectations. A total of 66 hotel websites in Singapore were scanned to give the features analysis. On the basis of the perception scores of 112 inbound travel agents, the study identified the gaps between the users and the website provider (hotel industry).     

Fashionable hospitality: A natural symbiosis for Hong Kong's tourism industry?

Despite the well-accepted synergy between shopping and tourism, co-branding between hotels and retail brands has not been realized by either academia or practitioners. Considering the international recognition of retail brands, hotel and retail co-branding may be a sustainable competitive advantage, especially in shopping destinations such as Hong Kong. Using a one-shot cross-sectional design, this study investigated potential consumer reactions and preferences about likely hotel and retail co-branding in Hong Kong and mainland China. Findings indicated several opportunities as well as threats for hotels and retail brands as well as the need to understand specific markets, especially mainland Chinese before venturing into hotel and retail co-branding. Practical implications and future research suggestions are provided.