What are guests scared of? Crime-related hotel experiences and fear of crime

ABSTRACT

This study aims to explore the typology of hotel crime and how it is related to guests’ fear of crime based on a cause-and-consequence model. A total of 873 TripAdvisor reviews were content-analyzed to develop a typology of hotel crime. High-class hotels experienced more theft, fraud, and burglary while low-class hotels encountered more prostitution and drug-related activities. Hotel guests generated a higher fear of crime when crime occurred inside guest rooms, especially in cases of burglary, theft, or fraud. Reviews mentioning crimes were perceived to be more helpful. Managerial implications and best practices of crime prevention are provided for hotel practitioners.     

Tourism and crime in the Caribbean

This study reviews the general literature on tourism and crime and the recent history of violent and property crime in several Caribbean destinations. It highlights the failure of most previous research to discriminate crimes against tourists vs. residents. Annual crime data for Barbados for 1989–93 are analyzed and reveal that overall guest victimization rates are higher than host rates. Residents are significantly more likely to be victimized by violent crime while tourists are significantly more likely to experience property crime and robbery. Monthly data on guest victimization for 1990–93 show similar patterns. The paper concludes with a number of measures to enhance tourist safety.     

Operating synergy and marketplace performance of dual-branded hotels

Dual-branded hotels have received great attention in the industry recently. Our study uniquely examines the dual branding effects in two dimensions of synergy (operation and marketplace) and the role of dual branding composition in creating synergy. Based on the property-level data, this study conducts a systematic analysis to verify these benefits using a fixed-effects model and a matched-sample analysis. There are three key findings. First, the benefit of dual branding mainly comes from operating synergy. Dual branding could lower revenue volatility for all dual-branded hotels and reduce operating costs for those paired with the same-class hotels. Second, dual branding on marketplace performance varies by property characteristics. Third, the anchoring effect is asymmetric. In a different-class dual-branded hotel pair, the higher-class hotel’s occupancy is anchored down but the lower-class hotel’s occupancy is not anchored up.     

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).     

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.     

Does Airbnb have a homogenous impact? Examining Airbnb’s effect on hotels with different organizational structures

Although a number of studies have examined Airbnb’s impact on hotels, previous studies have yielded mixed results and are limited in their geographical scope. Additionally, the impact of Airbnb on hotels with different organizational structures has not been previously analyzed. Accordingly, the purpose of this study is threefold: 1) to add to our understanding of the impact of an increase of Airbnb inventory by clarifying previously inconclusive results; 2) to examine the extent to which Airbnb listings affect hotel performance measures in the overall U.S. hotel market; and 3) to investigate the influence of Airbnb on key hotel metrics by elaborating the effect of Airbnb on hotels operated under different organizational forms- chain-managed, franchised, and independent. Our results show an adverse impact of Airbnb on hotel RevPAR and ADR metrics across different organizational structures. However, interestingly, Airbnb listings did not negatively affect occupancy numbers. Theoretical and practical implications are discussed.     

Do brands matter? A comparison of branded and independent hotels’ performance during a full economic cycle

By analyzing longitudinal data of more than 51,000 hotels operating in the United States during the previous economic cycle, it is possible to draw conclusions regarding the performance of branded hotels compared to independent operations under various economic conditions. The results of the study indicate that while branded properties experience significantly higher occupancy rate during the different phases of the economic cycle, independent hotels experience significantly higher average daily rate (ADR) and rooms revenues per available room (RevPAR) during the same time period. While branded hotels are faced with various payments attributable to the brand, such as royalty payments and other franchise fees, those fees do not have a deleterious effect on net operating income (NOI) compared to NOI for independent hotels, suggesting that independent hotels are unable to bring their ADR and RevPAR premiums to the bottom line despite their savings in franchise expenses. Instead, the results indicate similar NOI for branded hotels and independent hotels during economic expansion, but significantly higher NOI for branded hotels during economic recession. The results of this study suggest that the intangible asset value of hotel brands may not be a static construct, but may vary by time. Sources of such intangible value of brands may include shared resources, guest loyalty programs, and yield management systems. These results contribute insight into the complex hotel owner decision of choosing between a brand affiliation and independent operation.     

Does advertising spending improve sales performance?

Hotel managers and investors commonly analyze the impact of advertising spending on firm performance. This paper investigates such an impact using a comprehensive framework incorporating the moderating effects of hotel size and star ratings. We estimated sales performance via dynamic, stochastic frontier modelling. Using longitudinal data from a sample of Slovenian and Croatian hotels, we demonstrate that advertising spending has a positive impact on hotel sales performance, and that the relationship strengthens for larger hotels and hotels with higher star ratings. Theoretical and managerial implications along with directions for future research are also discussed.     

Does Triple Bottom Line reporting improve hotel performance?

Triple Bottom Line (TBL) reporting is a comprehensive approach to achieve sustainability as it integrates reporting on environmental, social and financial issues. While society is pushing hotels to increase their commitment to TBL reporting, opinions are divided as to whether TBL reporting affects hotel performance. The present study uses the Data Envelopment Analysis (DEA) method to address this important question. Our results, based on a sample of Slovenian hotels, support the hypotheses that more extensive reporting on environmental, social and financial issues lead to better hotel performance. We show that reporting on environmental issues has a slightly higher impact on performance than reporting on social and financial issues. We discuss the implications of the study and provide directions for future research.     

Product diversification and property performance in the urban lodging market: The relationship and its moderators

In this study, we investigate the relationship between product diversification and hotel property performance as well as the moderators of this relationship in the urban lodging market. Using stochastic frontier analysis with panel data, we calibrate the efficiency scores of 377 urban hotels in Beijing from 1994 to 2005. We then investigate the impact of product diversification on performance as measured by efficiency score. Results from panel data models indicate that the degree of product diversification exhibits a positive relationship with hotel performance. Hotel location, diversification expansion rate, and foreign ownership/operation are found to be significant moderating factors determining the effect of product diversification. Specifically, hotels that (a) are located farther from the city center, (b) expand diversification more slowly, and (c) are domestically owned are more likely to leverage the benefits stemming from product diversification. We provide a series of practical evaluation modules to help hoteliers improve performance.     

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.     

Modelling growth and revenue for Swedish hotel establishments

This paper provides first estimates of the determinants of output growth of Swedish hotels based on establishment data. Growth of overnight stays is modelled as a function of initial size, age, type of accommodation, location and hotel prices measured as average revenues per guest nights. The empirical model accounts for potential endogeneity of hotel prices through the two-stage least absolute deviation model (2SLAD) and the instrumental variable quantile regression method. 2SLAD estimates show a positive and significant relationship between hotel prices and subsequent growth. The relationship is nonlinear with a decreasing impact as the price level increases. Growth of establishments is significantly higher for smaller and younger hotels. An important result is that city hotels, in comparison to tourist and other hotels – which are mainly located outside urban areas (in the mountains and at the sea) – exhibit significantly higher growth rates with a gap between 2.2 and 3.4 percentage points. Furthermore, the positive impact of hotel prices on growth is larger for high-growth establishments. Accommodation prices significantly decrease with the number of local competitors with a non-linear form and increase with size. City hotels and accommodation in the capital city have the highest revenues per guest night.     

The effects of Airbnb on hotel performance: Evidence from cities beyond the United States

Although Airbnb's impact on hotels has been quantified for major hotel markets in the United States, these effects have not been quantified in international hotel markets. Accordingly, the purpose of this study is to examine the effects of Airbnb listings on key hotel performance metrics in an international context. In particular, we examine the effects of Airbnb listings on hotel revenue per available room (RevPAR), average daily rate (ADR), and occupancy rate (OCC) in major international hotel markets, namely London, Paris, Sydney and Tokyo. The results show that Airbnb listings in these major cities have been increasing more than 100% year over year and that the effect of Airbnb on hotel RevPAR and OCC is negative and statistically significant. In particular, a 1% increase in Airbnb listings decreases hotel RevPAR by between 0.016% and 0.031% in these hotel markets. The implications of these findings for destinations and hoteliers are discussed.     

Who benefits more from trade shows: Independent,franchised or chain-owned/managed hotels?

Large-scale events are opportunities for hotels to generate revenue. The literature has attested positive effects of events on hotel performance. However, while large-demand events are associated with room rate increases, hotel operation types may play a critical role in this “event-hotel performance” relationship. Drawing on the resource-based view theory, the chain value model and the theory of strategic groups, we hypothesize that independent and franchised hotels outperform chain-owned/managed hotels when events are held. The empirical application on over 950,000 observations between 2014 and 2019 shows that while chain-owned/managed hotels generally outperform independent and franchised hotels, this situation reverses in the presence of events. This result extends the resource-based view theory and the value chain model by including the short/long-term and corporate/property paradigm in the hotel industry.     

Quantifying the economic impact of COVID-19 on the U.S. hotel industry: Examination of hotel segments and operational structures

The COVID-19 pandemic has had substantial negative impacts on the global economy. While all sectors of the economy are expected to be adversely affected, the economic implications of this pandemic for the hotel industry have not yet been widely investigated. The purpose of this study is to examine the extent to which the COVID-19 pandemic has affected the U.S. hotel industry. The results showed that daily room OCC, ADR and RevPAR have plunged about 74%, 47% and 86%, respectively. Although the impact is observed across all hotel segments, economy-scale hotels were more resilient, whereas luxury-scale hotels experienced the largest decline. Also, chain-managed hotels are the most affected by the COVID-19 pandemic as compared to franchise and independent hotels. Quantifying the magnitude of this impact, we found that the U.S. hotel industry's revenue losses accumulated to over $30 billion between March-2020 and May-2020. Implications for practitioners, policy-makers, and researchers are discussed.     

Promoting innovation in hospitality companies through human resource management practices

In this study, we investigate how hospitality companies can promote incremental and radical innovation through human resource management practices (i.e., selection and training). Data from 196 independent hotels and restaurants operating in the People's Republic of China show that hiring multi-skilled core customer-contact employees and training core customer-contact employees for multiple skills both have significant and positive effects on incremental and radical innovation among hotel and restaurant companies. The two human resource management practices are also found to have a negative joint impact on incremental but not radical innovation. The implications for promoting innovation in hospitality companies are discussed.     

How do dynamic capabilities explain hotel performance?

This research study explores the relationship between three dynamic capabilities and their impact on hotel performance. Specifically, we examine the relationship between human resource management (HRM), quality management (QM) and sustainability. In addition, we analyse how QM and sustainability explain hotel performance measured by occupancy rate, average daily rate (ADR) and revenues per available room (RevPAR). These capabilities can generate income, enabling hotels to adapt as quickly as possible to the changing environment. Findings show a significant relationship between HRM, QM and sustainability. The relationship between QM and hotel performance and between sustainability and hotel performance is fully mediated by the differentiation competitive advantage. Our results represent an advance in hotel theory and management because they integrate HRM, QM and sustainability, and show their ability to be a source of competitive advantage and profitability.     

The effects of Airbnb’s price positioning on hotel performance

This study examined the relationship between the price positioning of Airbnb listings, measured in price difference between a hotel property and the nearby Airbnb listings as well as price dispersion among these Airbnb listings, and the performance of nearby hotels. An exploratory analysis using field data points collected from the Airbnb listings and their hotel counterparts in the metropolitan area of Austin, Texas between Quarter 3, 2008 (debut of Airbnb in Austin) and Quarter 2, 2011 reveals intriguing findings. The entry of Airbnb listings was penetrative to local hotels. However, the price positioning of Airbnb, manifested in higher average price as compared to nearby hotels, as well as larger price dispersion among individual listings, significantly mitigated such penetration. Important theoretical contributions and practical implications for hotels are discussed.     

Drivers of environmental innovation in Majorcan hotels

Using a database of Majorcan hotels, this paper examines several previously untested determinants of environmental innovations in hotels derived from the Porter hypothesis and from the specifics of knowledge transfer in the tourism industry. The empirical analysis is original in that it distinguishes between eight types of environmental innovations. The results show that hotels’ general predisposition to implement innovations, manager remuneration based on environmental performance, staff satisfaction, environmental accounting, and trainings are important determinants of the overall environmental innovation activity of Majorcan hotels. Moreover, the use of environmental management systems is associated with innovations with cost-saving potential, whereas the hotel star category is associated with innovations that contribute to hotel quality, such as wastewater treatment, noise reduction, noise isolation, and visual impact improvements. Furthermore, high levels of staff satisfaction are related to the implementation of water-saving and noise reduction innovations, as such innovations require staff participation, whereas the role of information sources in explaining innovation adoption varies based on the technical complexity of innovations. The paper concludes with policy implications for sustainable tourism development, recommendations for the hoteliers, and directions for future research.     

Cooperation and competition between online travel agencies and hotels

With the advent of O2O (online to offline) mode, Online Travel Agency (OTA) websites help to introduce new customers to hotels. However, since OTAs charge a hefty commission, hotel managers hope returning customers can book future visits from hotel websites instead of OTA websites. The study is to investigate how OTAs and hotels cooperate and compete with each other at the same time in the multichannel environments. The results show that OTAs can attract new and returning customers by website service quality while hotels can attract returning customers by perceived value. On the other hand, OTA website service quality has a negative effect on intention to rebook via hotel websites and the intention to rebook via OTA and hotel websites indeed have a negative relationship. Thus, the two channels compete with each other for customers' future visits.