Public Financing of Headquarter Hotels in the United States

Abstract

The past decade has seen a dramatic shift toward public sector financing of large hotels in the United States. This dialectic analysis examines trends in public participation in hotel development and examines why governments are investing in these projects. It looks at the different types of public participation and considers the market implications of these subsidies on private sector hotel development. The case is made that there is a need for accountability and more thorough review of these public investments. The paper proposes various ways that this can be achieved and discusses barriers to such reforms.     

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.     

The Implementation of Saudization in the Hotel Industry

Saudi Arabia's localization policy, “Saudization,” aims to decrease reliance on expatriate workers, but it has been more successful in the public sector than in the private sector. This study explores the issues involved in effectively implementing the policy in the hotel industry in Saudi Arabia, specifically four- and five-star hotels. Tourism professionals, HR professionals, and hotel managers were interviewed and hotel managers and employees surveyed. The research specifies criteria for the effective implementation of Saudization and identifies the issues involved in implementing this policy in four- and five-star hotels. It makes recommendations, which could assist in implementing the policy effectively in the hotel industry.     

Evidence of green signaling in green hotels

Green signaling posits that environment-friendly purchases signal consumers’ pro-sociality and willingness to pay more for societal/environmental well-being, enhancing their social status. Using three scenario-based quasi-experimental studies, we sought evidence of green signaling by guests in green hotels when status motive is activated, consumption condition is manipulated, and hotel price is varied. Results showed that, when status motive is activated, consumers signal the intent to purchase better-quality conventional hotels when green hotels are priced more or equal and when the consumption condition is private. In public consumption condition, when controlling for price, and in private consumption condition, when green hotels are priced lower, no significant difference was found between purchase intentions regarding conventional and green hotels. This represents slight, although inconclusive, evidence of green signaling. Industry practitioners in green hotels should lower prices and make the consumption process public by providing consumers with opportunities to engage more actively via social media.     

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.     

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.     

Corporate Social Responsibility and the Operationalization Challenge for Global Tourism Organizations

Tourism businesses have increasingly sought to contribute to society through corporate social responsibility (CSR) initiatives. Larger tourism organizations normally seek to institutionalize CSR under their corporate CSR policy and strategy that is common for their whole organization. This presents challenges for organizations with global operations. This article examines the operationalization of CSR policy by hotel properties in coastal destinations in Thailand. The research found that stakeholders other than the hotels played pivotal roles in the implementation of CSR programs and that there was a preference for involvement by hotels in local projects, over those situated elsewhere in the country or internationally. These hotels tended to partner with other non-hotel stakeholders to execute their external CSR programs and for these to be directed at social issues rather than environmental issues. Overall it was concluded that there are limits to the extent that corporate headquarters may direct the implementation of CSR.     

Managing solid waste in small hotels

Collectively, small hotels constitute a significant solid waste management (SWM) problem. Little research has focused on the SWM practices of small hotels. In the United Kingdom, much of the solid waste generated by small hotels goes to landfill. This study uses a constructionist approach to investigate SWM issues in small hotels in a local authority in Wales and examines the role of the public sector in helping small hotels manage their solid waste effectively. The results revealed that only a minority of small hotels were considering the adoption of sustainable SWM practices, either because hoteliers felt negatively about sustainable SWM alternatives or perceived challenges – an issue which necessitates government intervention. At the time of this study, the public sector provided only very modest services to enhance SWM practices. This study proposes a best practice model for the public sector to encourage small hotels to manage their solid waste effectively, in order to reduce or even eliminate waste for landfill. Local authorities' support is required to make waste management hierarchy options more accessible to small hotels and should incentivise better waste management through increasing the gap between the costs of landfill and recycling waste.     

Influences of price,service convenience,and social servicescape on post-purchase process of capsule hotels

A capsule hotel is a new affordable type of hotel that attracts backpackers and young tourists. This study proposes a research model to verify the influences of perceived price, service convenience, and social servicescape on functional and experiential values, and then on repurchase intention and electronic Word-of-Mouth (eWOM). Research results show that tourists’ perceived price and service convenience affect functional value. Service convenience and social servicescape influence experiential value. Functional value and experiential value encourage guests to repurchase capsule hotels and share positive eWOM. This study aims to inspire research interest in capsule hotels and to provide practical implications for hotel operators.     

The effects of brand relationship quality on responses to service failure of hotel consumers

This article examines the applicability of Fournier's (1998) Brand Relationship Quality (BRQ) framework in the hotel industry, and also investigates the effects of BRQ on hotel consumers’ behavioral intentions, after service failures in high-class hotels. The empirical results show that BRQ is applicable to the hotel industry and has a moderating effect on consumers’ post-failure emotions, particularly in terms of influencing future behavioral intentions. However, this finding is not applicable when the service failures are severe.     

Attitude Towards Green Hotel by Hoteliers and Travel Agency Managers in Taiwan

Analysis is performed by green hotel features: energy conservation, water conservation, waste management, green purchasing, and corporate social responsibility. Questionnaires were distributed to managers of hotels and travel agencies via snowball-sampling. Findings show that hoteliers have higher green hotel attitudes than travel agency managers. By gender, female managers have higher green hotel attitudes. Managers with less work experience have higher green hotel attitudes. Managers who work for upscale hotels have higher green hotel attitudes than managers of typical hotels and travel agencies. Managers working in south or east Taiwan have higher green hotel attitudes than those in north or central Taiwan.     

Developing inter-organizational relationships with online travel agencies (OTAs) and the hotel industry

This research examines the relationship status of leading OTAs with the hotel industry in the Asia Pacific (APAC) region along with future trends in hotel distribution channels. A Delphi study was conducted with senior executives (n = 12) of leading OTAs to explore the inter-organizational relationship development between hotels and OTAs. Our results indicate that building a long-term sustainable relationship with the hotel industry requires OTAs to be innovative and capable of enhancing their value to hotels. Moreover, the future of the hotel distribution landscape in the APAC region is expected to become increasingly complex.     

Tourism carrying capacity : Concept and issues

This article examines the concept of carrying capacity, the calculation and control of which has not been taken seriously by developers, whether public or private, especially in developing countries. This has resulted in many cases in overcapacity within the areas developed for tourism, causing the destruction or near-destruction of historical landmarks and even of the natural environment. Thus it is necessary for the concept of tourism carrying capacity to be included in the planning for tourism as initiated by governments and other developers, in spite of difficulties in measurement.     

Coping with no-shows,late cancellations and oversales: American hotels out-do the airlines

The article describes the related problems of no-shows, late cancellations, overbooking and oversales that plague both the hotel and airline industries. It then examines how American hotels and airlines have coped with the problems of no-shows/late cancellations, engaged in protective overbooking to minimise oversales and undersales, dealt with bumps and walks with upgrades and compensation plans and what they have done to monitor their reservation profiles. The author, an airline economist, has come to the unmistakable conclusion that the hotels have done a much better job than the airlines of managing the problem of no-shows, late cancellations and oversales.     

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.     

Environmental proactivity of hotel operations: Antecedents and the moderating effect of ownership type

This study examines the relative importance of three influential factors (stakeholder pressure, economic opportunities, and top managers’ personal environmental concern) in shaping managerial attitudes toward adoption of green programs in the hotel industry. The results, based on a sample of 235 top managers of hotels affiliated with three U.S. state hotel associations, suggest that stakeholder pressure is the most dominant predictor of managerial attitudes toward adoption of green programs followed by economic benefits and top managers’ personal environmental concern. In addition, the relationship between managerial attitudes toward adoption of environmental programs and organizational environmental commitment is found to be moderated by the ownership style. The relationship is stronger for independent hotels than for chain-affiliated hotels, indicating a more significant role of managerial discretion in implementing environmental strategies at the independent hotel setting than the chain hotel setting.     

Social responsibility and total quality in the hospitality industry: does gender matter?

This empirical study examines the role of gender diversity in top management teams (TMTs) and their impact on corporate social responsibility (CSR), which is an underexplored topic within the hotel sector. Based on stakeholder theory, we argue that the relationship between gender diversity and hotel performance is indirect and mediated by CSR. Our study also analyses how the implementation of total quality management (TQM) and CSR influences hotel stakeholder results, and hence business performance. Using a sample of Spanish hotels, we provide evidence that gender diversity in TMTs increases the level of implementation of CSR within the hotel industry. The results show that the impact of gender diversity on hotel performance is mediated by CSR. The findings also suggest that the adoption of TQM and CSR management philosophies improves the capacity of hotels to benefit their stakeholders, and that this improvement has a positive effect on hotel performance.     

Hotels and group identity

The aim is to develop an evolutionary theory which will explain changes in the character and shape of a hotel industry over time. The basis of the theory proposed is that hotels are related to the identity of social groups and therefore to processes of group differentiation. Following discussion of the theoretical framework the theory is illustrated through examples of the UK hotel and public house industries and their relationship with a particular form of group differentiation, namely social class.     

Branding destinations versus branding hotels in a gaming destination—Examining the nature and significance of co-branding effects in the case study of Macao

This paper considers destinations and hotels operating within a gaming destination as co-branded experiential choice products. Specifically, it examines the overall and individual effects of visitors’ perceived brand equity of a gaming destination and their perceived brand equity of various hotels, including ‘flagship’ or branded hotels, in terms of influencing their reaction to a hypothetical brand loyalty scenario in which their intended and preferred hotel was unable to provide accommodation thus forcing them to either: (1) choose an alternate hotel in the destination and continue with the visit, (2) cancel the trip and choose another destination to visit, or (3) insist on staying at the preferred hotel but postpone the trip at another period. The study's expectation is that visitors’ response to such a hypothetical scenario is moderated by the relative influence of their perceived brand equity for the destination and for hotels. The emergent gaming destination of Macao is used as a case study for this purpose. The study's findings indicate that visitors’ overall destination brand equity perceptions—rather than hotel brand equity perceptions—is robustly significant when it comes to influencing visitors’ response to the brand loyalty scenario. Results of the study indicate several relevant implications for destination management organizations (DMOs) seeking to enhance their destination-branding efforts and for hotel operators, especially internationally branded hotel chains.     

Don't change my towels please: Factors influencing participation in towel reuse programs

Towel reuse is the flagship of hotel environmental practices. This paper examines the effects of consumer demographic, psychographic and behavioral characteristics influencing a two-stage decision making process including participation and support to a towel reuse program. A meta-analysis shows that 53% of customers are willing to financially support green hotels. A survey of 1304 Greek and foreign hotel customers in tourism hot spots in Greece reveals that 72% of hotel customers would adopt a towel reuse program while 44.1% are willing to pay extra an average of 2.15 euros per day to support it. Younger customers and customers that book high-priced hotels or with higher length of stay exhibit higher willingness to pay extra for towel reuse programs. As rising water and energy shortages in specific tourism hotspots bring hotels' environmental integration under increased scrutiny, the focal findings hold significant implications for hotel managers and tourism policy makers.