Estimating the duration of different seasons and their impact on hotel room prices

The purpose of the study is to accurately measure the span of different seasons and its effect on the fluctuation of the occupancy rate and the average room rates in the hospitality sector. While prior studies have concentrated on measuring seasonality using calendar months, this study takes a different approach by measuring seasons in terms of the date count so that the exact starting and ending date of a season can be identified. This step involves adopting a non-parametric methodology that split the time scale into several small parts to obtain a better fit of the relationship and that can detect the starting and end of the season when given specific dates.     

The effect of idiosyncratic price movements on short- and long-run performance of hotels

It is a common belief that businesses performance should not be evaluated by immediate fiscal returns, but rather based on an extended time horizon. While the literature implies that pricing decisions may exert lagged as well as contemporaneous effects on performance, a limited number of empirical studies have focused on such effects. The current study investigates effects of idiosyncratic price movements on short-run and long-run hotel performance, where idiosyncratic price movements refer to the changes in individual hotels’ room rates unexplained by price competition, product differentiation, and market conditions. By analyzing spatial panel data from the Houston lodging market between 2005 and 2014, we find that idiosyncratic price movements enhance hotel performance in the short-run and that adverse effects followed in the long-run. Findings of the study and implications for practitioners are discussed along with suggestions for future research.     

Competitive actions and firm performance of hotels in Hong Kong

Drawn on the recent action–reaction perspective in competitive dynamics studies, this paper suggests that not only the number of competitive actions, but also the extent of differences of action portfolios within and between firms are relevant in determining a firm's performance. A distinction of these differences of competitive action portfolios among firms and the corresponding measures to capture these effects are proposed. This study of Hong Kong high tariff hotels confirmed that diversifying a hotel's portfolio of actions, but not too much different from the competitors, would help hotels to achieve higher financial performance in a competitive market.     

A yield management model for five-star hotels: Computerized and non-computerized implementation

The purpose of this study was to propose an enhanced yield management (YM) model that was developed based on the previous models and to test the applicability on five-star lodging properties in Turkey to identify the related problems. The proposed model overcomes some of the limitations of previous ones. It was specifically developed for full service, upscale hotels, namely for five-star lodging properties with or without a computerized yield management system (CYMS). Examination of the actual implementation stages provided useful insight in determining the applicability and the problems related to the application of the model. Findings indicted that the proposed YM model can be used by all upscale properties (with or without a CYMS) to manage their revenue and yield. Findings suggested that the application of the model is likely to improve the operational and financial performance for both type of properties.     

Impacts of positive and negative corporate social responsibility activities on company performance in the hospitality industry

In spite of growing concern for corporate social responsibility (CSR) in various industries including the hospitality industry, the relationship between CSR activities and financial performance is a rarely examined subject in the hospitality context. Especially, research measuring the separate impacts of positive and negative CSR activities on companies’ financial performances remains, as yet, unconsidered. Thus, this study examines different impacts of positive and negative CSR activities on financial performance of hotel, casino, restaurant and airline companies, theoretically based on positivity and negativity effects. Findings suggest mixed results across different industries and will contribute to companies’ appropriate strategic decision-making for CSR activities by providing more precise information regarding the impacts of each directional CSR activity on financial performance.     

Strategic orientation and performance of tourism firms: Evidence from a developing country

This study investigates whether tourism firms in a developing country, namely Turkey, which adopt one of the four strategic orientations of Miles and Snow (1978), differ based on their financial and non-financial performance. The study results show that there is a difference in both financial and non-financial performance based on the strategic orientations followed by tourism enterprises. Generally, prospectors were found to outperform defenders, whereas analyzers showed a comparable performance to prospectors. The findings of this study imply that in developing countries, tourism businesses may be indifferent when choosing between these two strategies based on their internal characteristics since they yield similar financial results. Specific factors and developments in the macro environment and company-specific factors seem to affect tourism firms' strategic orientation as well as their performance. Better understanding and closer analysis of such factors can help improve the performance of tourism businesses in developing countries. Further research using both perceptual and objective measures is needed to confirm the present results to better assess possible differences in performance among strategic orientations in some other developing countries.     

The trickle-down effect of servant leadership on frontline employee service behaviors and performance: A multilevel study of Chinese hotels

This study tests a trickle-down effect regarding how servant leadership flows from top-to middle-level leaders, resulting in frontline employees' service-oriented behaviors and service quality. Using multiple validations, we develop and test a measure of servant leadership at various levels in the hospitality industry. Drawing on data from 325 employee–supervisor pairs of workgroups in 9 Chinese, star-level hotels, results from hierarchical linear modeling support the service profit chain theory and trickle-down model of leadership by demonstrating influence of top- and middle-level servant leadership on frontline employees. Cross-level moderation analysis suggests service climate moderates the effect on service-oriented behaviors, but in an inverse direction.     

The impact of insider managerial ownership on corporate performance of Taiwanese tourist hotels

This study examines the impact of insider managerial ownership on financial performance of publicly traded tourist hotels in Taiwan. Insider managerial shareholding (IMS) includes two different classes of owners: managers and directors (i.e., managers’ shareholding [MAS] plus directors’ shareholding [DIRS]). The indicators of financial performance under consideration are return on assets (ROA), return on equity (ROE), stock return (SR), and Tobin's Q. In addition to analyzing total insider managerial ownership (IMS), the study splits IMS into two components (MAS and DIRS) and examines each of them, separately. Subsequently, panel regression tests examine the effects of IMS, MAS, and DIRS on financial performance of Taiwanese tourist hotels. Test results suggest that IMS explains ROA, ROE and Tobin's Q, but not SR. Further, compared to MAS, DIRS has a more significant impact on hotel performance. Specifically, an inverted U-shape represents the effects of IMS and DIRS on hotel performance (ROA, ROE and Tobin's Q), indicating that both IMS and DIRS have a significantly positive impact on hotel performance up to an optimal point (supporting the convergence-of-interests hypothesis). Further, when IMS and DIRS are greater than their corresponding optimal points, these two factors can significantly deteriorate hotel performance (supporting the entrenchment hypothesis).     

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.     

Organisational characteristics and the practice of strategic planning in Jordanian hotels

This study examines the effects of some organisational characteristics on the practice of strategic planning in Jordanian hotels. Data was collected via a questionnaire survey of Jordanian hotels in two cities: namely Petra and Aqaba. The results indicate that Jordanian hotels engage with the strategic planning process by using a number of its techniques and that the nature of this engagement is affected by organisational size but not by type of ownership.     

Qualitative examination of employee turnover and retention strategies in international tourist hotels in Taiwan

In past decades, high employee turnover has been an important issue for many hoteliers and a focus of academic interest. Although hoteliers often use retention techniques to retain capable employees, the turnover rate remains high. The purpose of this study was to explore determinants of management-level employee turnover and to identify existing practices in human resource retention strategies. In this study, interviews with Taiwan hotel workers revealed that more than 80% of respondents had resigned from a job to pursue career advancement while 70% had experienced recruitment propositions from other hotels. Another factor of turnover may be that relating to differences between expectations and reality. This study indicates that managers need to understand more fully the needs of subordinates when providing career advice, and relevant training programs should be introduced to enhance career opportunities.     

Analysis of E-commerce and information technology applications in hotels: Business travelers' perceptions

Numerous research studies have been conducted that are related to e-commerce and information technology (IT) applications in the hospitality industry with regard to business operation, profit, output, and management perspective. The focus of this study is to examine current e-commerce and IT applications in the hospitality industry and to identify the business travelers' perceptions in order to improve customer service. One of the problems in the hospitality industry is that customers want advanced e-commerce and IT applications, but restaurants and hotels are not necessarily implementing them. This study discusses the typical problems and obstacles of implementing e-commerce and IT applications in hospitality, using the lodging e-commerce and IT applications to satisfy customers, and developing the lodging e-commerce and IT applications as a corporate competitive advantage. Moreover, this study investigated a variety of e-commerce and IT applications related to customer service, satisfaction, and retention as well as e-commerce and IT applications as a distribution channel for receiving travelers' information and accommodation booking. This study provides valuable implications for hospitality practitioners about customer perceptions relative to e-commerce and IT applications.     

Managing Swiss Hospitality: How cultural antecedents of innovation and customer-oriented value systems can influence performance in the hotel industry

Research into innovativeness and customer orientation in the service industry is burgeoning, yet our understanding of the antecedents and consequences of both activities in hospitality management remain unclear. To address this problem we investigate the link between corporate culture, indicators of innovativeness and business performance in the Swiss hotel industry, because the Swiss have a proclivity toward innovation as well as a long established record in hospitality management. Data were generated from 96 businesses in the hotel industry and the results were analysed using structural equation modeling. They suggest that cultural dimensions are positively associated with customer orientation, innovativeness, and company performance. The implications of the findings are discussed along with limitations and future research directions.     

Strategy implementation research in hospitality and tourism: Current status and future potential

To achieve their business objectives, hospitality and tourism organizations need effective implementation as well as consistent strategy formulation. However, the implementation aspect of strategy has attracted relatively less scholarly interest than strategic planning despite its critical role in achieving performance outcomes. Consequently, it is timely to provide an in-depth analysis of the strategy implementation literature. This is particularly the case in hospitality and tourism management where comprehensive literature reviews of strategy implementation have been lacking. To address the knowledge gap, the authors conduct a systematic literature review of 139 articles that appeared in 42 journals over the period 1988–2019. The items were grouped into six topic clusters with a view to generating novel research questions that have the potential to advance the field. We identify four main gaps that should be addressed and suggest prospective research directions.     

Complementary services at hotels in accordance with their pricing strategy and the price sensitivity of tourists

This study proposes a procedure for defining, assessing and classifying free or payable complementary hotel services. These services are susceptible of being provided to holiday hotel tourists at mature sun-and-sand destinations to increase guest satisfaction and hotel profitability. Following this procedure, an empirical study was carried out, by means of in-depth interviews, Delphi’s methodology among experts on tourist hotels, and a survey, which was distributed to a sample of 1100 tourists. As a result, a set of complementary services was obtained. These services may be (1) dispensable or susceptible of being eliminated or reduced due to their low importance and frequency of use, (2) essential, as they must be provided because they are very relevant and frequently used, and (3) desirable, because they must be provided due to their high relevance for tourists.     

Intellectual structure of strategic management research in the hospitality management field: A co-citation analysis

This study investigates the intellectual structure of strategic management (SM) research in the hospitality industry through co-citation analysis. This study analyzes the evolution of SM research from related SM articles inclusively published in hospitality- and tourism-focused journals as well as business- and management-focused journals from 1971 to 2016. This study is the first to map the intellectual structure of SM research in the hospitality industry to analyze the changes in the influence of the most significant studies, journals, and disciplines/fields as well as the relationships among the subfields on SM research in the hospitality industry. This study suggests that marketing is a dominant subfield in SM research within the hospitality industry. In addition, the resource-based view is a dominant approach in the field, although the positioning school was dominant during the field’s early stages.     

Tour operators and performance of SME hotels: Differences between hotels in coastal and inland areas

This paper studies the differences in the impact of global tour operators on the management and performance of hotels in coastal and inland areas. The empirical analysis is based on a survey conducted in 2016 on 375 Spanish SMEs operating in the hotel industry. A multi-group comparison analysis was carried out using Partial Least Squares (PLS) structural modelling. This analysis reveals that dependence on global tour operators has a direct effect on the conditions under which hotel services are provided (room rates and quotas) both in coastal and inland areas. Nevertheless, the pressure from tour operators is significantly stronger on hotel SMEs located in coastal areas, where it has a negative effect on profitability, in spite of having a positive influence on firm growth (sales and employment).     

Key drivers of innovation capability in hotels: implications on performance

Innovation capability is critical for the modernization and competitiveness of the hotel industry. This work analyzes the role of hotels' innovative culture, market orientation, and internal marketing as forerunners of innovation capability in hotels, as well as the effect of innovation capability on hotels' performance. The proposed conceptual model is evaluated through structural equation modeling using a sample of 256 Spanish hotels. The results reveal that innovative culture by itself is not a key driver of the hotels' innovation capability. However, internal marketing and market orientation mediate the innovative culture-innovation capability relationship. Innovation capability proves to enhance hotels' market results directly and indirectly through customer equity. Our findings offer hotel managers useful guidance to understand how innovation capability is built within the firm by combining the right organizational culture and practices. Additionally, our study reinforces the financial and non-financial benefits of innovation capability in hotels.     

Analyzing the influence of firm-wide integrated marketing communication on market performance in the hospitality industry

Over the last decade, scholars have recently emphasized the need for tourism marketers to orchestrate the wide range communication activities and forms via the adoption of Integrated Marketing Communication (IMC). However, prior research has almost neglected the role of IMC in hospitality management. This paper adopts a broad organizational approach conceiving IMC as a concept that involves the whole organizational entity and aims to analyze the effects of IMC on market performance, in terms of superior sales and financial results, greater brand advantage and customer-related outcomes for those businesses providing lodging services. To pursue this research purpose, a survey has been conducted among corporate-level senior managers of lodging businesses operating in Spain. The findings provided further and more compelling empirical proof of the positive influence of IMC on market performance, responding to the call for more rigorous empirical research to demonstrate the beneficial effects of firm-wide IMC on market performance.     

Levels of quality and environmental management in the hotel industry: Their joint influence on firm performance

Many studies have examined quality management and environmental management separately. This paper analysed the commitment to quality and environmental management at the same time, and their separate and joint effects on hotel performance. The empirical data were collected from a sample of 301 3-to-5-star Spanish hotels. A cluster analysis was carried out to identify the levels of commitment to quality and the environment. Then, ANOVA and regression analysis tested the quality and environmental commitment levels-performance link. Three levels of quality and environmental commitment have been identified. The findings showed that the commitment to quality and environmental practices influences hotel performance.