The Influence of a Hotel Firm's Quality of Service and Image and its Effect on Tourism Customer Loyalty

The aim of this article is to understand the influence of hotel service quality and corporate image on tourism customer loyalty. Data were collected from tourists at several sight-seeing locations in Mauritius. The study sample comprised guests of various hotels in Mauritius who were randomly approached and invited to participate in a survey on the hotel's services. The study findings suggest that it is the quality of service and the corporate image of the hotel that jointly influence tourism customers' loyalty. Although the study findings do not indicate a direct relationship between service quality and loyalty, it is the consistent quality of service that creates and sustains the image of the hotel which, ultimately, results in tourism customer loyalty. This would therefore suggest that tourism customer loyalty is dependent on a hotel's ability to consistently deliver service quality.     

Retention of Hourly Hotel Employees

Abstract

The major objective of this study was to explore the reasons behind hourly employee turnover in the hotel industry. Data was collected from 230 hourly employees in ten small and medium-size hotels located in the Southeast U.S. The results empirically confirmed that hourly employees' retention was predicted by self-fulfillment and working conditions rather than monetary rewards. More specifically, employees who were more likely to stay with their current employer: were not interested in finding another job, had a positive experience with their hotel's company policies, were satisfied with their current job, attributed a higher level of importance for paid vacation, had a positive experience with regard to their hotel's humane approach to employees, and did not attribute a high level of importance for having a fun and challenging job.     

Does better service induce higher profitability? Evidence from Taiwanese Hospitality Industry

We adopt Wang et al. (2006) service quality measure to examine how the qualities of various hotel services affect hotel's profitability using panel data in the Taiwanese international tourist hotel sector. The empirical results indicate that there is a non-linear relationship between food and beverage service quality and hotel profitability, while the effect of room service quality on hotel profitability is not significant.     

Market demand variations,room capacity,and optimal hotel room rates

This short note develops an optimal hotel room rate model and proposes optimal room rate strategies in both high and low seasons. We then examine our model with the data from tourist hotels in Taipei, Taiwan. The empirical results support our model's major predictions: (1) market demand variations significantly affect the difference between high season and low season optimal room rates; and (2) hotel's room capacity negatively affect the difference between high season and low season optimal room rates, which also means that fixed costs shall negatively affect the high season optimal room rate. This result contradicts with conventional wisdom.     

The Impact of Discounting Room Rates on In-House Restaurant Sales

This study investigates whether discounting hotel room rates during low seasons of demand influences in-house hotel restaurant sales in a positive way. A linear regression function was utilized to assess the relationship between discounting room rates and the hotel's in-house restaurant sales. The model summary provided results indicating that the discounting of room rates during the low season did not significantly influence in-house restaurant sales. The value of this study lies in the empirical results that may provide guidance to the revenue management practices of hotel managers.     

How human resources management best practice influence employee satisfaction and job retention in the Thai hotel industry

Human resources management (HRM) practices are hotel management tools that contribute to organizational success. The purpose of this study was to evaluate how soft HRM practices in the Thai hotel industry affect job satisfaction and job retention. This study focuses on soft HRM practices, which draws on theories of commitment and motivation. Soft HRM refers to human relations between staff and the hotel organization. A quantitative approach was employed using multiple regression technique with a stepwise method for data analysis. It was found that employee satisfaction is not fostered by increasing remuneration, but is more related to the quality of working life, good leadership style, regular training, employment security, the hotel's brand image, and employees' personal traits, a most important aspect. The findings from this study provide a comprehensive framework for both academic and managerial responses to resolve the labor and skill shortage crises. Equally important is the extrinsic and intrinsic motivation and personal attitude theory that underpins employee job satisfaction in this study.     

Understanding how consumers view green hotels: how a hotel's green image can influence behavioural intentions

As the public is increasingly concerned about environmental issues, green management is rapidly becoming a strategic tool that can enhance a hotel's competitive advantage. This study explores how to develop the image and branding of a green hotel using the concepts of cognitive, affective and overall images. The study, based on a survey of 416 hotel users, also investigates how a green hotel image can affect behavioural intentions (i.e. intention to revisit, intention to offer positive recommendations to others and willingness to pay a premium). The findings confirm that cognitive image components (namely value and quality attributes) can exert a positive influence on a green hotel's affective and overall images. The affective image is also found to positively affect a green hotel's overall image. A green hotel's overall image, in turn, can contribute to more favourable behavioural intentions. Quality attributes were found to be more powerful than value attributes. The importance of the concept of selfish altruism and obtaining a feeling of wellbeing from a purchase were shown to be very strong. A range of theoretical and practical implications are discussed.     

The appeal of sustainability in luxury hospitality: An investigation on the role of perceived integrity

This research investigates the effect of a luxury hotel's marketing communication strategy on consumers' willingness to book a room. In particular, the article compares two types of communication message: one that mainly highlights the hotel's attention to environmental sustainability and the other that focuses on customer service. The paper tests the hypothesis that a sustainability-focused communication leads to a higher willingness to book a room (compared to the customer service-focused strategy) because it increases consumers' perceptions about the hotel's integrity. Moreover, the study proposes that consumers' dispositional environmental concern magnifies this effect. One online and one realistic field experiment provide empirical evidence for the research hypotheses. This article contributes to the literature on sustainable luxury tourism and hospitality by proposing a novel theoretical framework, grounded in perceived hotel integrity, to explain why consumers might react positively when learning that a luxury hotel is committed to sustainability.     

Self-discipline or self-interest? The antecedents of hotel employees' pro-environmental behaviours

Abstract

Motivating employees to engage in pro-environmental behaviours is an essential topic in the tourism and hotel fields. This paper advances this research direction by integrating the mechanisms of cognition and incentives from the externalities/spillovers perspective. This paper argues that we can view the environmental and financial benefits received by hotels and natural environment as positive spillovers from employees' voluntary pro-environmental behaviours. Accordingly, internalization (the subject of positive spillovers cognitively perceives oneness with beneficiaries like hotels and physical environment) and compensation (beneficiaries offer incentives for positive spillovers' subject) are two leading solutions to the positive spillovers issue, which can improve employees' engagement in pro-environmental behaviours. Hence, this paper explores the impact of employees' cognitive internalization (work ethic) and positive incentives from the organization and nature (hotel's environmental benefit sharing and health rewards rooted in employees' ecological embeddedness) on employees' pro-environmental behaviours in the hotel industry. The empirical analysis of a sample of 324 employees working in Chinese luxury hotels suggests that employees' work ethic, hotel's environmental benefit sharing and employees' ecological embeddedness are significantly positively related to employees' pro-environmental behaviours and that the interplay of employees' work ethic and ecological embeddedness significantly and negatively affects employees' pro-environmental behaviours.     

The impact of IT-enabled customer service systems on service personalization,customer service perceptions,and hotel performance

Customer service is a critical element of a hotel's strategy and an important lever for differentiation of the hotel's offer. Over the last two decades, information systems have contributed to the transformation of customer interactions, enabling an unprecedented scale and scope of service personalization in the tourism industry. This paper reports the results of a mixed method study in a hotel that offers three contributions to the development and refinement of IT-enabled service personalization theory. It explores the role of signifiers in the design of customer service systems, showing that they significantly increase customer preference elicitation during the learning phase of the service personalization process. It then demonstrates that improved preference elicitation translates into higher customer service evaluations and value perceptions of the hotel. Finally, our study shows that IT-enabled service personalization creates financial benefits for the hotel via revenue share-shift from costly intermediated to direct distribution channels.     

Establishing attributes of an environmental management system for green hotel evaluation

This study establishes attributes of an environmental management system (EMS) for the hotel industry in Taiwan to create an instrument to help address green hotel auditing. Hotel EMS indicators were initially selected from ISO14000 and nine representative foreign green hotel assessment systems. The Delphi method conducted on twenty five experts with government officials, scholars and hotel managers for item modification to identify the preliminary EMS evaluation framework. An indicator selection process was employed to determine the dimensional indicators of the system. The data analysis reveals that a total of 64 indicators into ten dimensions were identified and prioritized in terms of their relative importance and feasibility. Moreover, 38 indicators are suitable for use and 18 of them should be implemented firstly in Taiwan hotel industry. The results also reveal the comparison with Taiwan government's environmental standards. Finally the EMS approach of this study provides managerial implications for government, hoteliers and consumers to improve their environmental management.     

Hotel Information Technology Security: Do Hoteliers Understand the Risks?

During the past decade, information technology (IT) has significantly changed the way the hotel industry controls and manages operations. While many technologies have been utilized, some newer technologies have emerged in the literature and in practice, and many of them impact the hotel's security. The purpose of this study is to understand how hotels with different service levels are currently using these technologies, and if having an internal IT department and sufficient IT budget impacts the use of these technologies. Among the results, this study identified a gap between hoteliers’ understanding of IT budget adequacy and the adequacy of installed IT security systems. The results also showed that luxury properties were significantly more likely to employ adequate IT security systems than other service levels.     

The effects of ethical leadership on manager job satisfaction,commitment, behavioral outcomes,and firm performance

This study investigates the effects of ethical leadership on a hotel middle manager's job satisfaction and affective commitment, which in turn influence that manager's behavioral outcomes (e.g., extra effort and turnover intention) that can also impact the hotel's performance. Mail surveys were distributed to 30 U.S. hotels, representing more than 8 different national and international brands, and 324 middle managers participated in the survey. This study demonstrates that executives’ ethical leadership is positively related to their middle managers’ job satisfaction and their affective organizational commitment. Middle managers’ job satisfaction is positively related to organizational commitment, but job satisfaction does not necessarily lead to their willingness to exert extra effort. The positive linkage between middle managers’ extra effort and the hotel's competitive performance is also confirmed.     

Measuring and Decomposing Efficiency in International Tourist Hotels in Taipei Using a Multidivision DEA Model

Traditional efficiency studies using data envelopment analysis (DEA) models considered all resource inputs as homogeneous, which appears to be unwarranted. In this article, we propose an output-oriented, multidivision DEA model considering the heterogeneity of different operating departments in a hotel when measuring its efficiency. Using the data of 21 international tourist hotels (ITHs) in Taipei during 2005–2007, we first measured each hotel's systematic efficiency by maximizing the performance of two different departments (i.e., rooms along with food and beverage) and then we decomposed the systematic efficiency by separately measuring the subsystematic efficiency of each department. Managers of the underperforming ITHs would find the model application and results of this study beneficial in helping them identify the operating department(s) that was causing the inefficiency for the hotel during 2005–2007. As a result, strategies and efforts for tackling the inefficiency could then be proposed by the managers in a more desirable direction. Implications are discussed.     

An Assessment of Key Hotel Guest Contact Personnel in Handling Guest Complaints

Abstract

The quality of a guest's hotel experience is frequently dependent on the consistency with which hotel standards of service are applied. Where the existing systems break down, guests will complain. This should be viewed as an opportunity for the hotel's management. However, some hotel direct guest contact personnel may view guest complaints as causes for panic rather than opportunities for improving the hotel operation. Guests whose complaints were resolved satisfactorily were willing to return back to the hotel. Proficiency in handling their complaints results in greater guest satisfaction and loyalty. The application of the research will be on Hotel Assistant Managers/Guest Relations Agents to investigate whether they are applying the necessary steps and techniques to solve guests' complaints related either to tangible or intangible products in hotels. Results indicate that Hotel Assistant Managers and Guest Relations Agents could improve their effectiveness in handling guests' complaints. Assistant Managers were found in this study to be better at handling complaints than Guest Relations Agents.     

How hotel owner-operator goal congruence and GM autonomy influence hotel performance

A principal-agent relationship exists between hotel owners and the management companies which often operate their hotels. In addition, they both act as principals to a mutual agent, the hotel's General Manager, who is tasked with trying to achieve each parties' objectives. Extensive research on hotel management agreements which govern the owner-operator relationship has demonstrated that these objectives are often incongruent. However, the property-level managerial and performance implications of their goal incongruence has not been empirically examined. This study analyzes these issues using a matched sample of surveys from both owners and operators across 64 hotels operated under hotel management agreements. Using structural equations modeling, we demonstrate that owner-operator goal congruence positively impacts hotel performance and that this relationship is both mediated and moderated by the hotel General Manager's autonomy.     

The Role of Expected Outcomes in the Formation of Behavioral Intentions in the Green-Hotel Industry

Despite customers' increasing environmental concerns and demand for green products in the lodging industry, there has been a lack of research undertaken to identify critical factors in hotel consumers' eco-friendly decision-making processes. The present study was designed to identify the expected outcomes of staying at a green hotel from a customer's perspective and to examine the relationships between the identified factors and behavioral intentions (i.e., visit intention and word-of-mouth intention). To achieve these objectives, this study used both qualitative (a focus group) and quantitative (survey and regression analysis) methodological approaches. A total of seven expected outcomes were identified through the focus group. An online survey of U.S. hotel customers was conducted. The results of the regression analysis evidenced that hotel customers' expected outcomes of staying at a green hotel had a positive influence on behavioral intentions, which demonstrated the role of expected outcomes as direct antecedents of behavioral intentions and as an immediate reason for choosing a green hotel over a non-conventional hotel. Findings from an additional analysis indicated that healthy guestrooms, eco-friendly practices, and reduced expenses were positively associated with visit intention. Further, healthy guestrooms, reduced expenses, organic foods, and environmental protection had a positive and significant impact on word-of-mouth intention.     

Responding to the bed bug crisis in social media

The increasing trend in social media changes the landscape of crisis communication and thus, calls for innovation in hotel crisis management practices. This research examined how New York City hotels responded to recent issues surrounding the bed bug crisis on the social media site TripAdviosr. This study adopted a mixed methods research design. The quantitative findings revealed that hotels’ response behaviors were associated with organizational factors (e.g. hotel's popularity, average rating, and star rating) and the rating of online reviews. The qualitative findings indicated that hotels employed various types of strategies in the response, which were dominated by strategies of bolstering and enhancing. In conclusion, this study addressed the need for a proactive approach in hotel crisis management and provided practical implications.     

Effect of celebrity endorsement on tourists’ perception of corporate image,corporate credibility and corporate loyalty

This study explores the effectiveness of using Korean celebrities to endorse a Korean hotel in the Japanese market. Specifically, Japanese tourists’ perception of the hotel's corporate image and corporate credibility were tested along with corporate loyalty. This study found that trust in celebrity endorsers by consumers is transferable to perceptions of image of the hotel, its credibility and loyalty to the hotel. Structural equation modeling was used to explain difference in the relationships between constructs that identified the effectiveness of each celebrity. One important finding was that specific celebrity endorsers may not appeal to the entire target market and for this reason more than one endorser may be required to promote a product.