The signaling and reputational effects of customer ratings on hotel revenues: Evidence from TripAdvisor

This study aims to examine whether customer ratings and online reviews affect hotel revenues, and if so, to quantify the effects. To achieve this objective, we articulate the mechanisms grounded on reputation theories whereby customer ratings exercise the influence on hotel performance through reputational and signaling effects. Using customer rating data from TripAdvisor and hotel revenue data from Texas, we estimate fixed effects regressions and adopt a regression discontinuity design to separate the signaling effect of customer ratings from reputational effect. We found that the signaling effect of a 1-star increase is an increase of 2.2–3.0% in hotel monthly revenues whereas the reputational effect of a 1-star increase is an increase of around 1.5–2.3% in hotel monthly revenues. Our findings are robust across alternative model specifications and provide insightful implications for hotels to manage their customer ratings.     

Impact of Customer Relationship Management on Customer Satisfaction: The Case of a Budget Hotel Chain

Customer Relationship Management (CRM) can bring many benefits to the hotel business, though there are some associated challenges. Such challenges often bring a significant risk of failure, and these risks become more significant in budget hotels. This study considers the changes that have emerged in the last decade as regards customer expectations when staying in budget hotels. We use qualitative approaches to investigate the overlaps between customer expectations and managers’ perceptions of CRM applications. The findings reveal that regardless of all changes, value for money and core products continue to play a critical role in customers’ overall satisfaction with budget hotels.     

A customer satisfaction index model for international tourist hotels: Integrating consumption emotions into the American Customer Satisfaction Index

This study integrates consumption emotions into the American Customer Satisfaction Index (ACSI) model to propose a hotel customer satisfaction index (H-CSI) model that can be applied to estimate customer satisfaction toward international tourist hotels. The H-CSI scale items were designed based on reference to the relevant literature and the suggestions of a focus group. Four-hundred and twelve customers of international tourist hotels were surveyed. The partial least squares method was employed to validate the measurement instruments in the H-CSI model and estimate item weights for the customer satisfaction scales. The H-CSI model is a comprehensive model for the measurement of customer satisfaction that includes most possible antecedents and outcomes. The research results show that the H-CSI model displayed strong explanatory power based on its reliability and validity. Accordingly, if hotel managers apply the H-SCI model instead of a general customer satisfaction survey, they can obtain a robust estimation of customer satisfaction, as well as extra information of post-purchase customer behavior to better manage customer satisfaction and achieve a competitive advantage.     

Exploring asymmetric effects of attribute performance on customer satisfaction in the hotel industry

Understanding the asymmetric effects of attribute performance (AP) on customer satisfaction (CS) is important for the managers in the hotel industry. Although several studies concerning this issue have been conducted, the varies of asymmetric effects across different market segments have not been revealed. To this end, this study aims to explore the asymmetric effects of AP on CS with respect to different market segments, including different types of hotels, different types of travelers and travelers from different regions. Four theories, i.e., expectation-disconfirmation paradigm, three-factor theory of CS, customer delight theory and prospect theory, are adopted to explain the formation of CS from the perspective of different market segments. The penalty–reward contrast analysis (PRCA) and asymmetric impact-performance analysis (AIPA) are used to analyze 1,547,869 user-generated ratings collected form TripAdvisor posted by the travelers from 140 countries concerning 9,596 hotels from 75 capital cities around the world. The results suggest that the asymmetric effects of AP on CS may vary across different market segments, including different types of hotels, different types of travelers and travelers from different regions. In addition, the priorities of hotel attributes for each type of hotel with respect to different types of travelers and travelers from different regions are also analyzed by AIPA. The obtained results will be valuable for researchers to conduct further studies and hotel managers to formulate improvement strategies.     

Becoming an ambidextrous hotel: The role of customer orientation

Because competitive pressure in the hotel industry continues to increase, hotels have to develop service innovation (i.e., exploration) and service improvement (i.e., exploitation) capacities to become ambidextrous for continually creating customer value. In this study, a theory of the effect of customer orientation on service innovation and service improvement, which facilitates service quality and results in better market performance, was developed and investigated. By analyzing the data provided by senior executives and department managers from 126 hotels in Taiwan, both service innovation and service improvement were revealed to partially mediate the relationship between customer orientation and market performance. The results imply that customer orientation affects the market performance of a hotel through the development of service capabilities, and that customer orientation can transform a hotel into an ambidextrous hotel by concurrently developing service innovation and service improvement capacities.     

Understanding service attributes of robot hotels: A sentiment analysis of customer online reviews

Robots and artificial intelligence are essential to the future of the hospitality industry, and they are receiving increasing interest from hotel managers and researchers. However, the adoption of robotic services in hotel operations is a challenging task owing to the current level of technology and lack of understanding on the relationship between various aspects of robotic services and customer satisfaction. Moreover, no prior study has examined the service attributes of robots in hotels. To fill these gaps, this study analyzes customers’ sentiments on major hotels employing robotic services expressed through online reviews. A list of robot quality and operational area attributes is first constructed, through which underperforming robot service areas are identified. Sentiments on robotic services have a positive correlation with hotel service satisfaction, which plays an important role in determining the overall satisfaction of customers. The analysis and findings are valuable to researchers and managers for future research and adoption of robotic services in hotels.     

Not all words are beneficial: The impact of management response contents on customer engagement behavior

Online reviews play an important role in motivating hotels to enhance customer engagement through appropriate management responses. However, the impact of management responses on customer engagement remains unclear. With data from hotel reviews and management responses, this study demonstrates that customer engagement is significantly reduced when causal explanations and certain words are included in management responses, as indicated by the number of future reviews. We also observe that the negative influence of causal explanations can be alleviated when management responses contain uncertain words. Furthermore, management responses which include positive-emotional words attenuate the negative impact of causal explanations. However, no significant effect is found when negative-emotional words are used in management responses. These findings can help managers develop effective response strategies to facilitate customer engagement behavior.     

Accounting for customer satisfaction in measuring hotel efficiency: Evidence from the US hotel industry

Customer satisfaction, though an important output, is often ignored in hotel efficiency studies. Our study provides empirical evidence that excluding customer satisfaction may lead to significant difference in the mean and ranking of hotel efficiency scores. We derive our hotel efficiency scores using the distance stochastic frontier method based on a balanced sample of leading hotel chains in the US. We present and compare the efficiency results from two models, one that includes customer satisfaction and one that excludes customer satisfaction. The study discusses the difference in efficiency scores between the models. It also elaborates on the efficiency scores of some individual hotel chains and provides directions for future research.     

Guest satisfaction in independent and affiliated to chain hotels

In the hotel sector, two basic organisational forms can be distinguished, independent and chain-affiliated, which reflects in the entities' management processes and in the dimensions of the hotel service. Guest satisfaction is the determinant of and the secret to success in the hotel industry, nevertheless the comparison of customer satisfaction of both operational models is scarce. The main goal of this work is to determine whether those differences exist, considering the geographical scope and size of the chain in linked hotels. Customer satisfaction was analysed in 404 four and five-star hotels, measured through the hotel ratings from online travel agent Booking.com, in two tourism destinations in Spain using the Rasch Measurement Theory. Results obtained indicate that the superiority in customer satisfaction of one of these management forms shows for specific dimensions of the service provided.     

The signaling effect of management response in engaging customers: A study of the hotel industry

Hotels today actively respond to online reviews given their tremendous influence on travelers' decisions. Yet, the questions of how to respond to online reviews continue to baffle hotel managers. By focusing on prospective travelers, we propose the effective management response signals hotels' care for customers and quality of service. Particularly, we postulate the frequency, speed and length of response influence the effectiveness of signaling in reducing information asymmetry. Based on the large-scale field data from TripAdvisor, this study demonstrates that the frequency and speed of response significantly enhance travelers’ engagement as indicated by more reviews, higher average valence, more votes for helpfulness, and higher popularity ranking. Furthermore, the frequent and speedy response is more effective for budget (vs. premium) hotels. Thus, management response to online reviews serves as a critical channel of communication to engage customers.     

The impact of the Covid-19 pandemic on customer experience design: The hotel managers’ perspective

This research responds to calls for research on the devastating impact of the Covid-19 pandemic on the hospitality industry by investigating how hotel managers are designing safe customer experiences. Specifically, this study examines the measures adopted in high-end and luxury hotels and identifies the effects of such measures on the intended (or planned) experience. Based on thematic analysis of interviews with hotel managers, this study identifies seven safety measures: hygiene and protection, internal work reorganization, servicescape reorganization, investments in technology and digital innovations, customer wait time reorganization, staff training, and updated communication. These measures are expected to affect the intended experience in terms of reassurance, quickness, intimacy, and proximity, as emerged from correspondence factor analysis. Based on these results, this research proposes a model for safe customer experience design and suggests practical implications to help hotel managers formulate strategies aimed at customer experience creation under safe conditions.     

Disentangling green service innovative behavior among hospitality employees: The role of customer green involvement

Regardless of the role of customers in co-creating value with organizations, how customer involvement drives employees, particularly in the hospitality industry, to engage in green service innovative endeavors has been scarcely examined. This study seeks to uncover how and when customer green involvement nurtures green service innovative behavior among hotel employees. The dataset was formed from the responses from 519 employees and 84 managers working in Vietnam-based hotels and analyzed via multilevel structural equation modeling. The results demonstrated the role of hotel employees’ green information management motivations (i.e., green information proactiveness, transparency, and formality) in mediating the positive relationship between customer green involvement and employee green service innovative behavior. Internal green marketing orientation functioned as an enhancer for the effects of customer green involvement on green information management motivations. This research contributes to the stream of green behavior research by bringing together customer green involvement and green service innovative behavior in the hospitality literature and unraveling the mechanisms behind their relationship.     

Examining key drivers of customer delight in a hotel experience: A cross-cultural perspective

Welcoming all guests is the calling shared by those who work in the hotel industry. Everyday hoteliers strive to provide a service of excellence to all of those who visit. This can be somewhat of a complex endeavor, as hotels receive guests from different nationalities and cultures. Previous research in the area of customer delight has revealed some of the factors that define and drive the customer delight experience. Despite the emerging literature on the subject, the question remains: are guest from different cultures likely to be delighted by different things? In the present study, the researchers conducted extensive semi-structured interviews (n = 228) with guests from different nationalities visiting the Central Florida area. The guests interviewed came predominantly from the United States, Brazil, Germany, and Canada. Using a process of content analysis, the researchers analyzed the drivers of customer delight and concluded that while some universal service elements exists, guests from different cultures can also be delighted by different services and amenities.     

Service climate and customer satisfaction in a casino hotel: An exploratory case study

Given the global escalation in gaming availability, this paper proposes a service management framework for the study of competitive advantage in casino hotels. Using data collected from 303 employees at an Australian casino hotel, an exploratory case study in service climate and customer satisfaction is presented. The findings suggest that while service climate is highly correlated with customer satisfaction, internal dynamics result in significant differences in the perceptions of casino employees versus non-casino employees, highlighting the need to tailor organisational strategies to different types of employees.     

Negative affect,deep acting,and customer compensation as responses to customer mistreatment: The effect of customer-based perspective-taking

Customer service employees often deal with customer mistreatment, eliciting negative affect, which subsequently influences service performance. Using affective events theory (Weiss & Cropanzano, 1996) as the theoretical framework, perspective taking was examined as an intervention to influence negative affect elicited from customer mistreatment in two experiments. Study 1 examined and found that customer perspective taking led to less negative affect, and subsequently more customer compensation and more deep acting through serial mediation effects. Study 2 tested the moderating effect of the service failure locus of causality (i.e., hotel or customer). The most important theoretical contribution is understanding how having employees shift the focus away from their own emotions, towards why a customer is being rude or difficult, influences deep acting and customer compensation via reduced negative affect. This paper provides a promising intervention and training tool that hospitality organizations can use to influence employee service recovery strategies and customer service.     

Unraveling the dynamic and contingency mechanism between service experience and customer engagement with luxury hotel brands

This study unravels the dynamic and contingency mechanism between service experience and customer engagement with luxury hotel brands by investigating a multi-step model linking these two variables, in which emotional attachment and relational quality constructs (i.e., brand satisfaction, brand trust, and brand commitment) act as a bridge, while customer involvement acts as a moderator. Based on a self-administered survey dataset of 249 international tourists who are customers of luxury hotel brands, partial least square structural equation modeling (PLS-SEM) is used to test the hypotheses. The results indicate that all proposed hypotheses are supported. As such, this study discovers and clarifies the nature and dynamic mechanism underpinning the co-creation and reciprocation process of customer engagement with luxury hotels. In particular, the positive service experience is found to contribute to customer engagement via emotional attachment and relational marketing. Furthermore, the moderating role of customer involvement in the luxury hotel setting is confirmed.     

Sustainability Management of Hotels: How Do Customers Respond in Online Reviews?

The purpose of this study was to investigate how guests respond to the sustainability efforts of sustainably managed hotels by discussing them in reviews posted online. Thus, an exploratory research design and the content analysis method were chosen for this study. The content analysis technique was used to analyze User Generated Content and to explore what attributes of sustainability are perceived as the most important by hotel guests in online reviews and whether they generate positive or negative feelings. An analysis of the reviews showed that hotel guests perceive sustainability positively: most indicators were discussed in a positive context, and reviews that contained sustainability attributes had higher guest ratings than other reviews. Explicit references to sustainability were found in only 6.8% of all customer comments. The most frequently encountered indicators in guest reviews were biodiversity, education and sustainable products. Customers mainly discuss attributes that have direct impacts on their experience or are observable at the hotel. Customers are likely to realize that a hotel’s commitment to sustainability can excuse the hotel for a suffered inconvenience. This finding implies that hoteliers should educate guests on their sustainability measures, as higher awareness may increase customer satisfaction.     

Multilevel Analysis of the Relationship Between Type of Travel,Online Ratings,and Management Response: Empirical Evidence from International Upscale Hotels

The diverse characteristics of customers and hotels have been identified as relevant to online customer satisfaction at the individual level. In this study, a comprehensive examination is conducted, through the use of a multilevel, nested model and secondary data set. The results show that both online review experience and management response frequencies can positively affect customer satisfaction. Additionally, hotel managers need to pay more attention to customers who have less online review experience when they carry out targeted response strategies. The findings have various implications for both academic researchers and hotel operators.     

Enhancing business performance of hotels: The role of innovation and customer orientation

Innovation management and customer orientation have been widely recognized as key factors in enhancing the business performance of hotels. Our research investigates the interplay between customer orientation, innovation, and business performance in the Alpine hospitality industry. The study contributes to current innovation research by jointly investigating hotel innovativeness and innovation behavior as two distinct dimensions of the innovation concept. Analyzing data from 203 hotel managers, this study shows that the effect of hotels’ customer orientation exceeds the effects of innovativeness and innovation behavior on financial and non financial business performance. Mediation analysis shows that innovation behavior partially mediates the effect of customer orientation on business performance. The results of the study provide hotel management with relevant insights into the customer orientation innovation performance chain.