Literature in strategic management in the hospitality industry

This literature review of the research in strategic management in the hospitality industry covers the 2 year period of 2002–2003. Using a contingency model framework for the analysis the research reported in refereed journals in the field of hospitality is reported. Additionally, research that considered the context of the hospitality industry but published in non-hospitality refereed journals was also included. Key issues and needs in the area are provided at the conclusion.     

Deal characteristics and M&A performance: How do hospitality firms fare?

The global hospitality industry has experienced significant consolidation in the past several decades. While evidence in the general business literature suggests that the target firm shareholders gain instead of the acquiring firm shareholders, some studies in the hospitality industry have suggested that mergers and acquisitions (M&As) are also beneficial to acquiring firms. Using a comparative study design and a comprehensive sample over 41 years, we empirically examine whether M&As create more value in the hospitality industry than in other industries and whether certain deal characteristics may explain the potential performance differential. Overall, we find that M&As in the hospitality industry outperform M&As in non-hospitality sectors. When examining deal attributes, we find that relative size of target, cash method of payment, and an unlisted target are characteristics positively related to merger performance and help explain some of the performance differential. We contribute theoretically and empirically to the literature by demonstrating that industry and deal effects play an important role in M&A performance.     

The ‘demographic timebomb’ and how some hospitality employers are responding to the challenge

The phrase ‘demographic timebomb’ has taken on the aura of a shibbholeth and that everyone knows they ought to be fearful about. But is it really understood and what needs to be done? This article seeks to answer these questions and to shed some light on the employment strategies being developed by some British hospitality employers to counteract the demographic changes of the 1990s. As a result, some of the myth that the hospitality industry is lagging behind other industries can be dispelled but other findings support popular testimony that the industry faces special problems.     

Meeting consumer needs — the basis for successful marketing of nutrition in foodservice

In this paper the need to base the design and marketing of nutrition in the hospitality industry upon consumer segmentation of the market is discussed. Characteristics of existing programs are summarized as are the factors contributing to their success or failure. An understanding of how to market nutrition programs successfully in the hospitality industry is essential, as nearly all hotel chains and many independent and chain restaurants have developed nutrition promotions or will be implementing nutrition programs in the next two years.     

Revisiting hospitality's marginal worker thesis: A mono-occupational perspective

This article re-examines the literature on workplace deviance in the context of employment relations in the hospitality industry and presents data from a qualitative study. Intertwining various manifestations of deviance apparent in business management research, sociological literature and that reported in hospitality industry studies, this paper further applies these contexts to investigate the professional experiences of a sample of chefs from Australia. In summary, the findings suggest that while deviance, in its various forms, is an intrinsic occupational idiosyncrasy, and that deviant practices indeed are commonplace in the hospitality industry, workers within the industry are conscious of the negative effects these images have on occupational image. Structural shortcomings including organisational, occupational and industry regulation appear, at least partially, responsible for a cycle of deviance. These findings might assist researchers and practitioners in their endeavours given the efforts of industry leaders and hospitality educators to enhance and professionalise the industry's image.     

Mission statements of international airlines: a content analysis

A well-designed mission statement is essential for formulating, implementing, and evaluating business strategy. Yet the role of the mission statement in the strategic management of business firms has not been sufficiently highlighted in the research literature. It is not surprising that minimal attention has been paid to the role of mission statements in the strategic management of tourism and hospitality organisations. This paper attempts to remedy this apparent neglect. It focuses on the international airline industry by selecting 50 mission statements from corporate websites.¹ The mission statements are then analysed to determine the extent to which they conform to commonly accepted views of the ‘ideal’ mission statement. Variations from the stated ‘ideal’ are highlighted and discussed. Conclusions are drawn regarding the role of mission statements in the strategic management of tourism and hospitality organisations.     

The service economy, de-industrialisation and the hospitality industry

This paper examines the popular view that the growth of services (and in particular, hospitality services) is both inevitable and desirable. It considers the terminological confusion surrounding the term ‘services’ and examines whether there is sufficient evidence to justify the continuing emergence of the ‘service’ as opposed to manufacturing-based economy. The view that the prosperity of the U.K. depends more on manufacturing than it does on services is considered, and conclusions are drawn for the hospitality industry.     

Sales skills in the hospitality industry

Two surveys were conducted with the intention of increasing insight into the nature of sales in today's hospitality industry. One hundred U.S. hotel sales and marketing managers were surveyed about attitudes within the hotel sales community regarding training, salesmanship, qualities of effective salespeople, and related issues. Also, the training directors of fifteen hotel companies were interviewed concerning their training programs for entry-level salespeople. Presentation of the results of these surveys is preceded by commentary from the literature and from selected hotel sales executives regarding the unique nature of sales in the hospitality industry.     

Asymmetric effects of tourist arrivals on the hospitality industry

This study makes a unique contribution to the hospitality literature by examining the asymmetric effects of total tourist arrivals in six segments of tourist arrivals (pleasure, business, visiting relatives, conference, study, and others) on Taiwan’s hospitality industry. Regression test results confirm that the contribution of the overall tourist arrivals and both pleasure and visiting relatives segments to hospitality industry growth is not asymmetric, as it is found in periods of expansion and contraction. The beneficial effect of the business segment on hospitality industry growth is asymmetric, existing only in periods of business cycle expansion. However, the conference, study, and other segments make no significant contribution to hospitality industry growth. The study’s valuable policy implications offer guidance to Taiwan’s tourism authorities, hospitality business owners, and managers.     

Turnaround strategy: A study of restaurant firms

This paper uses a case study approach to analyze the turnaround actions of two restaurant firms and compares them to the model of Robbins and Pearce [1992. Strategic Management Journal 9, 287–309]. The objective of this study is to scrutinize why these firms were unsuccessful in turning around and identify gaps between the firms’ actions and the empirical model of turnaround proposed by Robbins and Pearce. Two key turnaround measures, i.e., retrenchment and recovery are explored in detail and discussed in the context of the firms. The need for studying turnaround strategies is warranted as the number of hospitality firms that perish because of unsuccessful turnaround strategies is on the increase. Since turnaround strategies have not been pursued vigorously as a stream of research within the hospitality industry context, this approach would provide a framework for hospitality researchers to initiate similar future research efforts, which in turn would help the industry cope with turnaround.     

Customer mistreatment and service performance: A self-consistency perspective

The service encounter is an important social context for hospitality service providers who strive to satisfy their need for job competence by delivering excellent customer service. Customer mistreatment may be perceived as a sign of work-related goal failure by hospitality service providers. Building on the literature of goal attainment and failure in the workplace, we propose that hospitality employees, who experience customer mistreatment, undergo diminished organization-based self-esteem (OBSE), decreasing service performance. Moreover, employees’ locus of control is proposed to interact with customer mistreatment and predict service performance through the mediation of OBSE. The results of a multi-wave and multi-source survey, administered to a sample of hotel frontline employees (N = 180) and their direct supervisors (N = 38), show that customer mistreatment has a negative influence on service performance through OBSE, but only among employees with an external locus of control.     

Understanding corporate philanthropy in the hospitality industry

This study makes a unique contribution to the corporate social responsibility literature, both from a theoretical perspective and corporate philanthropy (CP) perspective that has been under-researched so far. Specifically, it extends the investigation of the motives of CP to the hospitality industry in the emerging country of Taiwan and is the first examination of the determinants of CP in the hospitality industry based on the value enhancement (VE) and agency cost (AC) theories. Previous studies found that either AC or VE determinants, not both, play a major role in making philanthropy decisions. This study reveal new and interesting findings using the data from 13 publicly traded hospitality companies in Taiwan collected between 1996 and 2011. Panel regression test results show that both VE determinants (labor intensity and profitability) and AC determinants (board size and the ratio of independent directors to total directors) were found to be significant factors in explaining the discretionary behavior of CP in the hospitality industry. Furthermore, the lagged philanthropy-to-sale ratio was also significantly related to CP decisions in the hospitality industry in Taiwan, suggesting that the behavior of CP in the Taiwanese hospitality industry is persistent. The possible explanation is that changing philanthropy pattern may lead to market-adverse expectations and reactions and damage the reputation of companies.     

The effect of COVID-19 pandemic on domestic tourism: A DEMATEL method analysis on quarantine decisions

Countries' most effective methods to reduce the impact of outbreaks are quarantine the regions during the pandemic periods. Quarantine decisions during a pandemic directly affect the hospitality industry. There is no universal guideline regarding the quarantine decision during a pandemic. There is a gap in the literature on making the right quarantine decisions to decrease the negative effect of a pandemic on the hospitality industry. To fill this gap, this study uses a decision-making trial and evaluation laboratory (DEMATEL) method to help countries for quarantine decisions due to the COVID-19 pandemic. One of the critical hospitality industry indicators is the inter-regional travel flow between regions for local tourism. Data from the household domestic tourism survey obtained from the Turkish Statistical Institute (TurkStat) is used to acquire the number of people entering and exiting among regions. This study's findings indicate that Istanbul has an essential impact on Turkey's rest. The results also demonstrate that the DEMATEL method provides convenient solutions for quarantine decisions during a pandemic. The DEMATEL application results concerning the COVID-19 pandemic effect might shed light on the hospitality industry’s prospects and challenges. This study's findings might be adopted to prepare the hospitality industry for the COVID-19 pandemic and similar pandemic.     

To dine or not to dine? Collective wellbeing in hospitality in the COVID-19 era

The hospitality industry has been hard hit by the ongoing pandemic caused by the COVID-19 virus. As restaurants develop comprehensive reopening plans, consumers may still have mixed feelings about simple things such as going out for a meal. This paper explores wellbeing perceptions of restaurant diners. Based on the analysis of semi-structured interviews, this paper reveals that wellbeing in hospitality is a collective concept comprised of multiple domains of a service system, including macro, meso, and micro levels. Furthermore, this paper provides strong support to show that wellbeing is not only sought collectively, but also is determined by consumers’ wellbeing perceptions of both themselves and others around them, and thus contributes to the wellbeing literature in the hospitality domain. Finally, this paper identifies potential concerns regarding crowding and behaviors of other guests, which extends the hospitality literature on perceived territoriality. The theoretical and practical implications are discussed in detail.     

Conceptual model for analysing management development in the hospitality industry: A UK perspective

This paper presents a conceptual, contingent model of hospitality management development (MD). Having explored the dimensions and relationships in the model, it is then applied to the UK hospitality industry through analysing the nature of the hospitality industry for potential influences on MD and evaluating research into its practice. The embryonic model is presented as a vehicle to enhance understanding of the complex influences and contexts of hospitality MD and to distinguish distinctive characteristics of MD in the hospitality industry.     

The contributions of economics to hospitality literature: A content analysis of hospitality and tourism journals

This paper aimed to develop a concrete understanding of economics topics and methodologies that have been applied to hospitality research and to suggest areas for further research. Content analysis of 292 full-length articles was performed. The results showed that the contributions of economics to hospitality literature were largely empirical and microeconomics-related. Most of the research topics focused on market analysis, which involves demand and supply modelling and price determinants, followed by performance analysis, involving efficiency and productivity studies. Limited contributions of macroeconomic topics to hospitality were determined, highlighting the lack of studies on the impact of government or public policies on the hospitality industry. Moreover, the application of game theory to market structures was found to be limited, creating a vacuum in terms of understanding the competitive and cooperative behaviours of hospitality firms. As a contribution to the literature, the study provides suggestions for future research.     

Do organizational practices matter for hotel industry employees’ jobs? A study of organizational practice archetypical configurations and job outcomes

Earlier research has demonstrated that organizational environment variables influence employees’ job outcome variables. This study focuses on the organizational practice dimensions of the hospitality industry and demonstrates that: (1) employees’ perceptions of practices can be construed as a limited set of archetypical configurations, and (2) the configurations are related to job outcome variables. The practice configurations are generated by cluster analysis, and the reliability and validity of the classification is demonstrated.     

The Hospitality Culture Scale: A measure organizational culture and personal attributes

The hospitality industry has a unique and specific culture when compared to other industries. Because of this, not everyone will want to make this industry a career, as evidenced by the high turnover. Yet, the hospitality industry needs to attract and keep motivated and dedicated employees. This study set out to discover attributes that are unique to hospitality organizations as well as the characteristics and values of a person who would be successful in a work environment that exhibited this culture. This includes determining if a person is a match to the culture of the hospitality industry. In order to identify the variables of hospitality culture, an extensive review of the literature and a panel of industry experts were consulted. The items identified from both groups were used to establish the constructs for a scale, which is called the Hospitality Culture Scale. Seven hundred and forty one hospitality professionals rated the attributes. Principal component analysis determined the final factors for the organizational culture and personal attributes. These constructs included: management principles, customer relationships, job variety, job satisfaction, principles, propitiousness, leadership, risk taker, accuracy, and composure.     

Hospitality management education in Greece An exploratory study

The importance of hospitality management education has been recognized all over the world for many years. Formal education plays a crucial role in the provision of skilled and competent human resources. Traditional tourism destination countries like Greece have developed tertiary hospitality education systems aiming at satisfying the needs of the tourism and hospitality industry. This paper examines the hospitality management education system in Greece and reports the initial findings of a qualitative research project undertaken for an assessment of the Greek system. The concept and the need of hospitality management education are explored and their struggle for identity is described. Furthermore, the graduates’ views on the hospitality education that they had received are examined through a large number of in-depth interviews. Finally, based on the research findings, a number of conclusions are drawn and specific suggestions for the future of the hospitality education in Greece are proposed. These proposals are reflected in the numerous current developments taking place in Greece as well as in the suggestions for further research.     

Capital structure in the hospitality industry: The role of the asset-light and fee-oriented strategy

An asset-light and fee-oriented strategy (ALFO), which reduces risk and facilitates firm growth with minimum capital investment, has increasingly gained attention from industry practitioners and academic scholars alike, especially in the service sector like the hospitality industry. We empirically examine how ALFO is employed and how it is related to the capital structure, i.e. the proportion of debt and equity financing, in hospitality firms. Using a sample of 982 firm-year observations over the period 2002–2016, we find that ALFO is widely used by the hospitality industry, and as expected, the fee-income ratio and the degree of franchising have increased, while asset tangibility and capital intensity have decreased. Interestingly, although ALFO is positively related to long-term debt ratios of hospitality firms, our sub-sector analyses indicate that the relationship is only significant in the restaurant sector and not in the hotel sector. Our study contributes to the literature by identifying an important industry-specific variable that affects the capital structure of hospitality firms.