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.     

A behavioral analysis of web sharers and browsers in Hong Kong using targeted association rule mining

With the widespread use of Internet technology, electronic word-of-mouth [eWOM] communication through online reviews of products and services has a strong influence on consumer behavior and preferences. Although prior research efforts have attempted to investigate the behavior of users regarding the sharing of personal experiences and browsing the experiences of others online, it remains a challenge for business managers to incorporate eWOM effects into their business planning and decision-making processes effectively. Applying a newly proposed association rule mining technique, this study investigates eWOM in the context of the tourism industry using an outbound domestic tourism data set that was recently collected in Hong Kong. The complete profiles and the relations of online experience sharers and travel website browsers are explored. The empirical results are useful in helping tourism managers to define new target customers and to plan more effective marketing strategies.     

Gazing at hotel guests: Deconstructing elements of the host-gaze

This study identifies key elements of the so-called host-gaze by investigating how Hong Kong hotel employees view guests emanating from a key source market - India. Front office and housekeeping staff evaluated their interactions with guests, particularly in the case of those from India. The researchers identified four elements of the host “gaze”, namely: (1) Initial Gaze; (2) Communication Gaze; (3) Customer Behavior Gaze and (4) Distinguishing Gaze. The authors reveal that though the gaze empowers employees to exercise control over their behaviors, manipulative behaviors increase the likelihood of workplace deviance. Drawing on the principles of emotional labor, the researchers affirm the importance of cultural and emotional intelligence for the professional demeanor and development of hospitality employees.     

Exploring the relationship between employee creativity and job-related motivators in the Hong Kong hotel industry

The purpose of this research is to determine if there is any relationship between employee creativity and job-related motivators, using a case study of hotel employees in Hong Kong. From a sample of 983 employees, canonical correlation indicated there is a relationship between creativity and job-related motivators. Furthermore, the risk-taking dimension under creativity was found to be more correlated to the intrinsic job-related motivators. Intrinsic job-related motivators which include opportunity for advancement and development, loyalty to employees, appreciation and praise of work done, feelings of being involved, sympathetic help with personal problems and interesting work, are found to encourage the hotel employees’ risk-taking behavior. A “See-Saw” model is presented to show the relationship between the two opposing sides: intrinsic motivators and extrinsic motivators versus creativity and risk-taking factors.     

Impact of hotel website quality on online booking intentions: eTrust as a mediator

Growing competitiveness in the marketplace pushes hoteliers to fully take advantage of their websites as a marketing tool. This study proposed that a trusting relationship with customers could be developed by investing in hotel website development. A research model that incorporates hotel website quality, eTrust, and online booking intentions was put forward. The software AMOS 20.0 was adopted to analyze the proposed inter-variable relationships. Statistical results demonstrated that hotel website quality is a strong predictor of eTrust which then also mediates the relationship between website quality and consumers’ online booking intentions. Implications were offered for practitioners based on the results.     

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.     

Functionality evaluation of mobile hotel websites in the m-commerce era

Many hotel companies have launched mobile versions of their official websites in the m-commerce era. These websites are used as online marketing and communication tools for travelers worldwide. Given that mobile websites are essentially different from their desktop counterparts, a new set of evaluation criteria must be formulated in response to the changing technologies in Internet browsing. This study used the hotels in Hong Kong as samples and produced a revised evaluation instrument for the functionality of mobile hotel websites via focus group discussions. Performance scores were calculated to compare the different types and categories of hotels. Managerial implications were also discussed.     

User preferences for web site attributes: A study of the Hong Kong Disneyland

The Hong Kong Disneyland will be open in 2005 and the theme park is very likely to have an official web site. In order to determine the nature of a model/ideal official web site that would serve the promotional purpose, this study is conducted with two objectives. First, the study makes an attempt to understand the information types that the target markets, namely local Hong Kong residents, Western visitors and Chinese visitors, would like to have on the future Hong Kong Disney web site. Secondly, this research examines whether e‐ticketing is feasible for the web site. Using a questionnaire and a convenience sampling method, 198 responses were received. Empirical results indicate that the respondents all agreed that the suggested attributes should be listed in the web site. In addition, no significant difference was found among different groups of respondents on homepage information. However, significant differences were found among the interviewees’ views regarding products/services information, and ticketing information. To communicate effectively, the adoption of EDI (Electronic Data Interchange) is recommended in a value‐chain system for achieving successful e‐commerce.     

A simultaneous equations model of the hotel room supply and demand in Hong Kong

The purpose of the study is to identify the important factors that influence the hotel room supply and demand, and their overall impact on the Hong Kong hotel industry. Nineteen years of time series data are used and a simultaneous equations econometric model is employed. The overall goodness-of-fit of both demand and supply models is very high, suggesting high predictive power. Empirical results indicate that “hotel room price” and “tourist arrivals” are significant factors driving the demand for hotel rooms. In addition, “1990–91 recession” and “the 1997–98 Asian financial crisis” had a significant negative impact on the demand for hotel rooms in Hong Kong. At the same time, “hotel room quantity demanded”, “room occupancy rate”, “last period's room price”, “labor cost”, “last period's average price of Grade A private offices”, and “the Asian financial crisis” all have a significant impact on room price in the short run.     

An exploratory analysis of hotel selection factors: A comprehensive survey of Tehran hotels

The selection of residence location in different countries is of high priority and significance for tourists. The selection of the most appropriate hotel entails a rather complicated decision-making process. A comprehensive hotel selection model can empower the hotel managers, the tourists, and the tourism industry to make decisions based on more effective indicators of high quality services for a higher rate of satisfaction. The purpose of this research is to deeply explore the broad literature and to identify the most significant hotel selection indicators and factors in Tehran hotels and to present a comprehensive model through an exploratory factor analysis of the extracted indicators so as to provide the managers and tourists with a firm ground for making better decisions regarding the indicators of hotel selection. Promenade and comfort, security and protection, network services, pleasure, staff and their services, news and recreational information, cleanliness and room comfort, expenditure, room facilities and car parking were identified as the main hotel selection factors of Tehran hotels. Afterwards, another factor analysis has been done in order to extract the next hidden set of factors within the aforementioned factors which return two main factors of “Hotel Comfort Factors” and “Hotel Compensatory Factors”. Following the creation of the final model and based on the intrinsic vagueness of decision making in the process of selection, a set of fuzzy membership functions for the extracted factors has been provided. The intention has been to provide the expert system and decision support system developers and users with a set of practical indicators in order to help them design and implement realistic systems based on the deeply studied indicators and factors of hotel selection. Such supportive systems can be directly presented to the tourists requesting a mechanism for selecting the most appropriate hotel but lacking enough information about the important indicators and factors and also to the managers of hotels who are trying to make strategic decisions regarding the most optimized investments on the indicators of selecting a hotel. Considering the priorities of tourists, hotel managers, entrepreneurs and investors in the hotel industry require deep investigations and studies for which this paper provides a firm basis.     

The profitability impact of REIT requirements: A comparative analysis of hotel REITS and hotel C-Corporations

Under the influence of regulatory requirements, REITs have evolved into entities that have distinct financial and organizational characteristics from their C-Corporation counterparts. This study aims to investigate whether hotel REITs are more profitable than hotel C-Corps and how REIT regulations contribute to this difference. The results indicate that despite the differences in tax obligation, operating expense, and dividend policy, hotel REITs and hotel C-Corporations are not significantly different in profitability. However, the analysis suggests that hotel C-Corps have advantage over hotel REITs in improving profitability through dividend payout increases. The findings also suggest a possible non-linear relationship between profitability and dividend payout, presenting an opportunity to extend Jensen's (1986) agency cost theory.     

Lifestyle Segmentation of Spa Users: A Study of Inbound Travelers to Hong Kong

Based on the increasing popularity of the wellness/spa trend and the growing numbers of inbound tourists to Hong Kong, it is crucial for spa industry experts to understand the ever-changing desires of consumers. The study aims to identify the lifestyle dimensions of international spa visitors to Hong Kong and to profile each segment based on their sociodemographic and travel characteristics. The study adopts a quantitative approach to segmenting international spa visitors in Hong Kong by lifestyle. The results of the lifestyle segmentation revealed five clusters of spa visitors. The segments are “health conscious and intellectual”, “average”, “family focused”, “pleasure oriented”, and “carefree”. It is found that the majority of travelers who visit spas in Hong Kong are health conscious and intellectual. In general, visitors prefer day spas, to visit with their partner or friends, and to enjoy body massage treatments.     

Present and future hotel website marketing activities: Change propensity analysis

The objective of this study is to examine and predict website marketing activities of US hotels. An online survey is conducted to collect data from members of three major hotel associations located in the US. Change propensity analysis is utilized to evaluate future trends of website marketing activities. The results demonstrate that current website exploitation by the US hotels is relatively limited, with a focus on information dissemination. It is suggested that a number of transaction and relation-building activities will emerge in the near future. Implications based on the results are discussed.     

The impact of infectious diseases on hotel occupancy rate based on independent component analysis

The recent global outbreak of Influenza A (H1N1), or the more commonly known as swine flu, has negatively affected the tourism and hospitality industries in many countries. This article reports a study that applied independent component analysis, a novel statistical technique, to separate the dominant factors which determine the levels of hotel occupancy rates in Hong Kong. Empirical findings would provide useful insights on how the dynamic lodging demand reacts to epidemics based on the severity and duration of the events.     

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 online reviews on hotel booking intentions and perception of trust

A growing reliance on the Internet as an information source when making choices about tourism products raises the need for more research into electronic word of mouth. Within a hotel context, this study explores the role of four key factors that influence perceptions of trust and consumer choice. An experimental design is used to investigate four independent variables: the target of the review (core or interpersonal); overall valence of a set of reviews (positive or negative); framing of reviews (what comes first: negative or positive information); and whether or not a consumer generated numerical rating is provided together with the written text. Consumers seem to be more influenced by early negative information, especially when the overall set of reviews is negative. However, positively framed information together with numerical rating details increases both booking intentions and consumer trust. The results suggest that consumers tend to rely on easy-to-process information, when evaluating a hotel based upon reviews. Higher levels of trust are also evident when a positively framed set of reviews focused on interpersonal service.     

A preliminary study on customer expectations of hotel hospitality: Influences of personal and hotel factors

This study attempts to explain the influence of personal and hotel factors on the expectation level of hotel hospitality as well as to propose a scale to measure commercial hospitality for hotel services. A total of 101 local and international hotel guests were involved in the study. The results revealed that the expectations of hotel hospitality are influenced by personal factors such as gender, purpose of stay, nationality, and private domain of hospitality. The hotel's star rating is the only hotel factor that might have strong association with hotel hospitality.     

Survival analysis of the Spanish hotel industry

The main objective of this study is an analysis of survival in the Spanish hotel industry. We used a sample of 1033 hotels opened from 1997 to 2009, examining financial and non-financial variables, including size; location; type of hotel; management, economic and financial structure and the year they opened, whether during an expansion or crisis period. The methodology included an econometric analysis of survival, using the non-parametric Kaplan–Meier estimator of constructed variables, in order to detect the particular influence of each variable. Semi-parametric regression was done with the Cox proportional hazards model, confirming which variables clearly influenced the survival of hotels and which signs existed for each analysed variables’ influence. The survival of hotels depends on their size, location, management and launch in a time of prosperity. However, survival rates were not significantly tied to particular types of hotels or configurations of their economic and financial structures.     

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.