The effects of choice set size and information filtering mechanisms on online hotel booking

Online booking is one of the most popular ways of making reservations for hotel guests. Thus, hoteliers are paying increasing attention to hotel website information presentation and design. The purpose of this study, then, is to examine the joint influence of choice set size and information filtering mechanisms on consumers’ decision confidence towards online hotel booking. Choice set size was operationalized through 3-, 9-, and 30-hotel room choice sets. Through experimental design, this study shows that the presence of an information filtering mechanism reduces consumers’ perceptions of choice overload with a large number of choices (30 choices), whereas its impact is attenuated with smaller choice sets (3 and 9 choices). In addition, choice overload mediates the impact of choice set size on decision confidence. Theoretical contribution and managerial implications are also discussed.     

The impact of hotel CSR for strategic philanthropy on booking behavior and hotel performance during the COVID-19 pandemic

During the novel coronavirus (COVID-19) pandemic, some hotels have engaged in corporate social responsibility (CSR) activities to help overcome the crisis. Given that most existing research examines the impact of hotel CSR on a single stakeholder, how hotel CSR activities in a crisis are perceived by multiple stakeholders is unknown. Drawing on the concept of strategic philanthropy, this study examines the impact of hotel CSR activities during the pandemic, such as providing accommodations to healthcare workers, on hotel firms' market value and prospective hotel customers’ booking behavior. Adopting mixed-methods approach, this study finds negative impacts of hotel CSR for strategic philanthropy on firm market value and customer booking behavior. The study result indicates that the value of hotel CSR depends on the nature and environmental contexts of CSR. Specific theoretical and practical implications are provided.     

Using machine learning and big data for efficient forecasting of hotel booking cancellations

Cancellations are a key aspect of hotel revenue management because of their impact on room reservation systems. In fact, very little is known about the reasons that lead customers to cancel, or how it can be avoided. The aim of this paper is to propose a means of enabling the forecasting of hotel booking cancellations using only 13 independent variables, a reduced number in comparison with related research in the area, which in addition coincide with those that are most often requested by customers when they place a reservation. For this matter, machine-learning techniques, among other artificial neural networks optimised with genetic algorithms were applied achieving a cancellation rate of up to 98%. The proposed methodology allows us not only to know about cancellation rates, but also to identify which customer is likely to cancel. This approach would mean organisations could strengthen their action protocols regarding tourist arrivals.     

Management of the change process in hotel companies: An investigation at unit level

The management of change has become an organisational necessity in the 1990s and will continue to be a major factor in the management of hotel companies in the future. This article investigates and evaluates management of the change process at unit level in hotel firms. The data was gathered through in-depth semi-structured interviews with ten hotel managers in the UK. Lewin's three-stage model was found to be of limited use in practice. A five-stage model of the change process emerges from the research findings. This model reflects a more practical view of the management of change as an on-going, continuous process. Finally, the limitations of the research are discussed and further research areas identified.     

An exploratory investigation of the real-time training modes used by hotel expatriates

Existing literature contains voluminous research indicating that an expatriate's failure to adapt to the host culture is a leading driver of turnover [e.g. Powers, T. 1992. Managing international hospitality, FIU Hospitality Review, 1(1), 25–34; Stone, R., 1991. Expatriate selection and failure. Human Resource Planning 14, 9–18]. In response to this recurring finding, an increased number of corporations offer cultural training for those beginning (or about to begin) an international assignment. Nevertheless, even in a top-rate training program, only a small fraction of cultural idiosyncrasies can be addressed in advanced training sessions. Therefore, in addition to a priori training, recent literature recommends the use of real-time training [Avril, A., Magnini, V., 2007. A holistic approach to expatriate success. International Journal of Contemporary Hospitality Management 19 (1), 53–63; Magnini, V., Honeycutt, E., 2003. Learning orientation and the hotel expatriate manager experience. International Journal of Hospitality Management 22, 267–380; Mendenhall, M., Stahl, G., 2000. Expatriate training and development: where do we go from here? Human Resources Management 39 (2–3), 251–265]. This research collects exploratory survey results from nineteen current hotel expatriates and finds that the most commonly used source of real-time training is local nationals. In addition, it is found that as the number of previous expatriate assignments increases, the use of CD-Rom real-time training products declines. Further, in terms of culture, expatriates are less likely to turn to repatriates for real-time advice when assigned to an individualistic host nation or when there is a sizable culture distance between home and host country. The implications of these findings are discussed.     

An empirical study on the influence of economy hotel website quality on online booking intentions

This study investigates the potential theoretical relationships among economy hotel website quality, eTrust, and online booking intentions in China. A questionnaire survey was performed, and 298 samples were collected from the users of three economy hotel websites (7 days, Home Inns, and Hanting Hotel) in Guangzhou, China. Results of a detailed data analysis demonstrate the influence of the four dimensions of economy hotel website quality (usability, ease of use, entertainment, and complementarity) on eTrust and online booking intentions. Specifically, (1) the usability, entertainment, and complementarity of economy hotel websites significantly positively affected eTrust; on the contrary, the influence of ease of use on eTrust was insignificant; (2) complementarity showed a more positive influence than the three other attributes on online booking intentions; and (3) eTrust significantly positively influenced online booking intentions. These findings contribute to economy hotel online marketing in China by bridging the gap between the exploration of hotel website quality and its influence on online booking intentions.     

Management of the change process in hotel companies: An investigation at unit level

The management of change has become an organisational necessity in the 1990s and will continue to be a major factor in the management of hotel companies in the future. This article investigates and evaluates management of the change process at unit level in hotel firms. The data was gathered through in-depth semi-structured interviews with ten hotel managers in the UK. Lewin’s three-stage model was found to be of limited use in practice. A five-stage model of the change process emerges from the research findings. This model reflects a more practical view of the management of change as an on-going, continuous process. Finally, the limitations of the research are discussed and further research areas identified.     

Consumer reviews and the creation of booking transaction value: Lessons from the hotel industry

In recent years, much has been said about online consumer-generated feedback. Concern typically emerges regarding consumer decision-making as well as the preservation of an organization's image. Additionally, a company's financial performance can be affected by customer online ratings. The present study explores the impact of a hotel's rating and number of reviews on the value generated through online transactions. Through collaboration with consulting company Travel Click, the research team gathered a sample of 178 hotels representing various companies and brands within the United States. Research results demonstrate that TripAdvisor ratings as well as the number of reviews had positive relationship with the average size of each online booking transaction. The paper concludes with theoretical and practical implications.     

Linking servicescape and customer engagement: An investigation in the hotel context

Servicescape and customer engagement are important concepts in the hospitality literature, but scant research pays attention to their relationship. To fill the gap, the present study proposes a “servicescape–value–engagement” framework to examine the effects of servicescape elements on different components of customer engagement by addressing functional and wellness values as mediators. Structural equation modeling was applied to analyze the data surveyed from 619 hotel customers in China. Findings indicate that substantive and communicative servicescapes have positive effects on customers’ cognitive, affective, and behavioral engagements. Wellness value mediates all of these effects whereas functional value only mediates the effects on customers’ affective and behavioral engagements. Through the establishment of the framework, the present study theoretically broadens current knowledge on the servicescape-driven responses and the antecedents of customer engagement. Practically, the findings prompt hotels to effectively design and deliver servicescape elements to improve customer engagement and value perceptions.     

The search for the best deal: How hotel cancellation policies affect the search and booking decisions of deal-seeking customers

This study examined cancellation policies and their role in shaping travelers’ deal-seeking behavior, exploring the impact of cancellation fees and deadlines on three, mutually exclusive, customers’ hotel booking behavior categories: “Book”, “Book and Search”, and “Search”. 291 subjects, who participated in a week long online “booking game”, attempted to book a room in a virtual hotel and get the best deal. The results were tested using small sample t-test for comparing proportions between two independent populations, non-parametric multiple pairwise comparisons, and multinomial logit regression models. The findings indicate that the cancellation deadline affected participants’ behavior while the size of the cancellation fee had no statistically significant impact. In addition, there was no significant difference between lenient cancellation deadline and no cancellation policy.     

The impact of using non-media information sources on the future use of mass media information sources: The mediating role of expectations fulfillment

An empirical study of 350 tourists reveals that using non-media information sources for planning tourist trips influences expectations fulfillment. The use of non-media information sources also has a direct impact on the future use of mass media information sources for future tourist trip planning, as well as an indirect impact through expectations fulfillment. More specifically, the main determinants of expectations fulfillment of local infrastructure are commercial brochures, travel agents and internet; expectations fulfillment of entertainment structures is affected by institutional brochures, travel agents and the internet; future use of mass media sources is influenced by expectations fulfillment of local infrastructure and entertainment structures; this factor is also influenced by past use of institutional brochures and the internet. Discussion centers on the implications of this model to theory and managerial development of tourism and services strategies. Directions for future research are also presented.     

An investigation of the moderating effects of current job position level and hotel work experience between technology readiness and technology acceptance

Rapid technology development has greatly changed the hotel structure in operation or customer relationship management. Most previous studies simply employed either the technology readiness index (TRI) or considered the technology acceptance model (TAM) to predict consumer behavior from the perceptions of consumers. Nonetheless, only limited studies, if ever any, integrated technology readiness (TR) into technology acceptance model in hospitality. Hence, to bridge the aforementioned research gap, the purpose of the present study is to advance and modify TAM by proposing a new research framework which integrates TR into TAM. Online questionnaire survey was conducted with hotel employees through a well-known survey company Qualtrics. Data were then analyzed by structural equation modelling. Findings indicate the direct relationship between technology readiness (TR) and technology acceptance (TA), and reveal the moderating effects of current job position level and hotel work experience on the proposed research framework. Implications are further discussed.     

Deterrence and leadership factors: Which are important for information security policy compliance in the hotel industry

Hotels have developed information security policies to deal with information security incidents, and managers are interested in how to enhance employees' compliance with these policies. This study examines how deterrence perception and managers' leadership influence employees' intention to comply with information security policies. Two rounds of surveys were conducted to collect data from Chinese hotel employees. The results show that perceived deterrent certainty has a positive effect. On the other hand, ethical leadership has a significant indirect effect with the second-round compliance intention. Abusive supervision does not have positive effects, even when managers' intent is motivational. Our study is among the first to examine the effect of managers' leadership on information security compliance intentions in the hotel industry. Our study also provides important strategic guidelines for by informing hotel managers that ethical leadership should be practiced as a means of enhancing employees' information security policy compliance.     

Opening the online marketplace: An examination of hotel pricing and travel agency on-line distribution of rooms

This paper studies the optimal pricing strategy of a hotel that establishes an online distribution channel through cooperation with an online travel agency (OTA). The OTA promotes the hotel and sells hotel rooms through its website and receives commission from the hotel for rooms sold. Through a sequence game model, this paper derives the optimal decision on the unit commission of the hotel and the optimal response of the OTA to that commission. The paper notes management implications, including (1) occupancy rate of a hotel before opening online marketing is an important metric for securing cooperation with an OTA; that is, a hotel with lower occupancy rates is more inclined to cooperate with an OTA to achieve an improvement in profits; and (2) a hotel is inclined to establish an online channel through an OTA with many online customers and/or few listed hotels.     

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.     

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.     

An assessment of adopting lean techniques in the construct of hotel supply chain

This paper assesses the adoption of lean techniques across the supply chains of hotels. Literature indicates a growing awareness of sustainability issues and lean adoption for value creation in the hospitality industry. However, there are limited exploratory studies that outline sustainability in terms of lean techniques in the context of a hotel supply chain. This paper addresses this gap using a structured study plan with specific research questions. To this end, a theoretical framework of lean assessment for value creation is first developed and a SIPOC-based construct of a hotel supply chain is used to identify and categorize hotel waste. An empirical study is then conducted to answer research questions and assess the extent of using lean techniques. Study results and the developed framework can be subsequently used by practitioners and researchers in conceptualization and assessment of lean adoption across the supply chains of hotels in different contexts.     

Influences of consumer characteristics on fairness perceptions of revenue management pricing in the hotel industry

Fairness perceptions play an important role in customers’ behavior, and this study explores which consumer characteristics influence fairness perceptions of revenue management (RM) pricing in the hotel context. To examine such differentiating characteristics, the study conducts a logit analysis by comparing two groups: one group of customers who consider hotels’ RM practices to be fair and the other group considers the practices to be unfair. The findings provide an opportunity for hotel managers to identify customers’ particular characteristics that affect customer's perceptions of the fairness of hotels’ RM pricing practices.     

Competency analysis of top managers in the Taiwanese hotel industry

The purpose of this study was to identify top managers’ competencies in hotel unit leaders perceived to be most critical for career development, and using the Fuzzy Delphi and Analytic Hierarchy Process methods to determine perceptions of the importance of various competencies in different dimensions. This study uses snowball sampling methods to collect data from 25 hotel top managers and uses qualitative and quantitative surveys, including interviews, questionnaire review and a questionnaire survey. A two-stage research design is adopted to understand the differences in perceived competency requirements better. The analytical results demonstrate the required competencies of top managers in the hotel industry, and divide them into generic and technical dimensions, 18 competency domains, and 107 competency indices. The top three most important competency domains are “leadership,” “crisis management,” and “problem-solving.” The proposed management competency framework provides an important implication for educators, practitioners, and researchers.     

Developing energy conservation and carbon reduction indicators for the hotel industry in Taiwan

This study develops and weights energy conservation and carbon reduction (ECCR) indicators for the hotel industry in Taiwan to create an instrument to help address climate change. Eighteen semi-structured interviews were conducted with senior hotel managers, environmental specialists, and government officials to identify the preliminary ECCR framework. An expert panel then was invited to review the structure of ECCR criteria and the compiled criteria in a structure for item modification. An analytic network process questionnaire survey was employed to determine the relative weights of the criteria. The data analysis reveals seven categories in the ECCR framework: communication and participation, top management commitment, energy, water, waste, building, and purchasing. A total of 32 indicators were identified and prioritized in terms of their relative importance to ECCR contributions. The results of this study suggest that the success of ECCR implementation depends primarily on management support and staff engagement. Hotel operators can improve their environmental management by initiating ECCR practices based on the proposed ECCR indicators.