Inflation and its impact on investment decisions in the hospitality industry

The impact of inflation is more severe in the hospitality industry than in some others because of its high level of capital investment. Proper evaluation of investment returns can only be made if inflation is considered in the evaluation process. This article presents an approach based on the net present value method of investment evaluation which incorporates the anticipated level of inflation and provides for the uncertainties of future cash flows.     

Strategic responses of the Spanish hospitality sector to the financial crisis

The 2008 financial crisis weakened the hospitality sector severely, like other industries. This paper investigates the response of the Spanish hospitality sector to the crisis by analyzing a sample of almost 70% of Madrid hotels. In particular, this research focuses on the connection between the impacts of the crisis, the measures taken to alleviate the crisis and an individual hotel's performance. The study shows that hotels that focus on high quality, brand image and a loyal customer base are best equipped to handle the crisis. Increased spending on marketing also eases the impact of the crisis. Cost-cutting measures characterize the worst performers. Contrary to the results presented in the literature, the crisis had no immediately visible negative impact upon an individual hotel's performance. Therefore, hotels should focus on quality, branding, a reliance on loyal customers and increasing marketing to counteract the crisis.     

The role of business model innovation in the hospitality industry during the COVID-19 crisis

The hospitality industry worldwide is among the hardest-hit industries from the COVID-19 lockdowns. Initial theoretical and practical observations in the hospitality industry indicate that business model innovation (BMI) might be a solution to recover from and successfully cope with the COVID-19 crisis. Interestingly, some firms in the hospitality industry already started to successfully adapt their business models. This study explores the why and how of these successful recovery attempts through BMI by conducting a multiple case study of six hospitality firms in Austria. We rely on interview data from managers together with one of their main stammgasts for each case, which we triangulate with secondary data for the analysis. Findings show that BMI is applied during and after the crisis to create new revenue streams and secure a higher level of liquidity, with an important role of stammgasts.     

The impact of employee-oriented CSR on quality of life: Evidence from the hospitality industry

This paper builds on recent corporate social responsibility (CSR) literature and on stakeholder theory. Our aim is to analyze the direct and indirect effects of employee-oriented CSR on hotel workers' quality of life (QoL). Based on survey collected from a sample of hotel employees in the Canary Islands (Spain), relationships were empirically examined through partial least square structural equation modeling (PLS-SEM). This study confirms that workers' perceptions of employee-oriented CSR positively and directly enhance their QoL. We found indirect positive effects through several mediators. Our results highlight the key role of working conditions, task significance, turnover intentions, and intrinsic quality on the relationship between employee-oriented CSR and QoL. Moreover, hotel service quality level is an antecedent of employee-oriented CSR. These findings advance the literature on CSR and reveal important managerial implications, especially in a post-pandemic scenario in which workers’ overall QoL is essential to ensure no one is left behind.     

The service economy, de-industrialisation and the hospitality industry

This paper examines the popular view that the growth of services (and in particular, hospitality services) is both inevitable and desirable. It considers the terminological confusion surrounding the term ‘services’ and examines whether there is sufficient evidence to justify the continuing emergence of the ‘service’ as opposed to manufacturing-based economy. The view that the prosperity of the U.K. depends more on manufacturing than it does on services is considered, and conclusions are drawn for the hospitality industry.     

COVID-19 impact on the hospitality industry: Exploratory study of financial-slack-driven risk preparedness

The hospitality industry is regarded as one of the most affected by the consequences of COVID-19 pandemic, and the undefined persistence of the pandemic duration raises anxiety about the ability to recover from this dramatic situation. In this regard, the purpose of this exploratory study is to shed light on the COVID-19 risk preparedness of hospitality businesses, as driven by the financial slack holdings and persistence. The empirical findings confirm that their financial-slack-driven risk preparedness should be judged as relatively low. A majority of the examined hospitality businesses demonstrated low or insufficient financial slack holdings and recently have consumed their financial slack resources. Thus, the abilities of hospitality businesses to sustain the liquidity tensions that emerged after the COVID-19 outbreak are questionable. Facing this evidence, we draw conclusions about the necessary design of system interventions that could prevent bankruptcy in the hospitality industry.     

The measurement of concentration in the hospitality industry

The development of a computerised data base capable of modification and updating together with both statistical and behavioural studies of market structure, conduct and performance offers a theoretical and empirical framework within which the hospitality service can be analysed and the businesses within it. This paper sets out a methodology for measuring one aspect of market structure — concentration — in one of the component sectors of tourism as a first step in this process. The computer programs are already developed and successfully run in measuring concentration in another service industry, namely retail distribution.     

Does bureaucracy kill individual initiative? The impact of structure on organizational citizenship behavior in the hospitality industry

In their quest for improved service quality, hospitality organizations face a paradox. Standardization and centralization are generally perceived as essential to maintaining high service standards. These bureaucratic mechanisms, however, are suspected to have a negative impact on spontaneous “organizational citizenship” behaviors, which are equally essential for flawless service delivery. Empirical results from the Swiss hotel industry suggest that “helping” behavior is more widespread than “voice” behavior among hotel employees. The results also provide support for the hypothesis that “helping” and “voice” behaviors are negatively affected by a centralized organization structure. Theoretical and practical implications of these results are discussed.     

Operations management perspectives and the hospitality industry

This paper examines the links between operations management principles developed in manufacturng industry and problems presented by service industries, such as the hospitality industry. The value and applicability of O.M. perspectives is discussed and several examples of recent and potential application are given.     

Understanding service experience and its impact on brand image in hospitality sector

This paper provides an understanding of customers’ common expectations and other important factors that enhance service experience during guest stay in the three selected four star rated hotels in Jammu, Chandigarh and Delhi, India. A structured questionnaire was used to collect data from hotel managers and individual customers. Guest's attitudes, their expected and unexpected feedback in addition to analyzing the important information that helps in finding out particular areas critical to customer service quality are explored. Overall the results indicate that expectations of the guests and actual experiences are at disparity. Viable recommendations to the hotel owners in particular and the hospitality industry overall are made which are likely to improve customer's memorable experience.     

Sales skills in the hospitality industry

Two surveys were conducted with the intention of increasing insight into the nature of sales in today's hospitality industry. One hundred U.S. hotel sales and marketing managers were surveyed about attitudes within the hotel sales community regarding training, salesmanship, qualities of effective salespeople, and related issues. Also, the training directors of fifteen hotel companies were interviewed concerning their training programs for entry-level salespeople. Presentation of the results of these surveys is preceded by commentary from the literature and from selected hotel sales executives regarding the unique nature of sales in the hospitality industry.     

Research on information technology in the hospitality industry

This paper reviews recent research on information technology in the hospitality industry. The analysis revealed three broad research areas: the Internet's effects on distribution; on pricing; and on consumer interactions. Similar to aftermath of the dot com boom, the hospitality industry is realising that the information technology has unintended effects and prognosticators are often wrong. While the reviewed articles provide sound advice for hospitality operators and a rich stream of future research for academics, poor rigor and a lack of relevance throughout the reviewed journals underscore a worrying trend in hospitality research.     

The 1979 US gasoline shortage and its impact on the tourism industry

Owners or managers of 373 businesses on Cape Cod, Massachusetts, were interviewed in summer 1981 to determine whether they were affected by the 1979 gasoline shortage. The results indicate that half the respondents were affected, the majority of whom were adversely affected. More tourism businesses reported being affected than non-tourism businesses. The effects manifested themselves in staff layoffs and unfilled vacancies. Nevertheless, tourism businesses on the Cape did not alter any of their marketing strategies, excluding the lowering of prices.     

The impact of quality management on productivity in the hospitality sector

This paper attempts to determine the relationship between quality and productivity in the hospitality sector. Although both variables are crucial to the competitive and value creation processes in hotels, few empirical studies have explicitly analyzed the relationship between them. Thus, we estimated a production function for a hotel sample that shows how a set of determinants influences labour productivity. Among these determinants we included different quality variables, defined from the point of view of total quality. The estimation results show a direct and significant effect of quality on labour productivity. This suggests that the implementation of total quality management (TQM) systems, or the adoption of the TQM principles, have a positive impact on hotel labour productivity.     

Operational issues and trends in the hospitality industry

This article makes some predictions about the future by considering operational issues in the first part of the next century. Hospitality operations management is considered at two levels — the firm level at which strategic operations management takes place; and the unit level. It is proposed, using a model developed by Jones (1999, International Journal of Contemporary Hospitality management), there are seven strategic concerns: location, integration, affiliation, configuration, organisation, implementation and adaptation. For unit operations management the framework of analysis is based on Lockwood and Jones (1989, The Management of Hotel Operations). This identifies seven key result areas: assets, employees, capacity (or customers), productivity, service, income (or control), and quality. Using these frameworks an assessment is made of current issues and trends in hospitality operations management, leading to a prioritisation of possible future outcomes.     

The business case for diversity management in the hospitality industry

Societal and regulatory pressures increasingly encourage firms to invest in and manage workplace diversity. In service industries like hospitality and tourism (HT) where customer interface and service is salient, diversity management assumes even greater importance than compared to other industries. Yet the link between investment in diversity and its relationship with financial performance is not known. This study compares diversity management between HT and non-HT firms, and finds that HT firms manage diversity by taking more initiatives than other firms. More importantly, it finds that investment in diversity translates into superior financial performance when measured by Tobin's Q and firm credit rating.     

The link among board characteristics,corporate social responsibility performance,and financial performance: Evidence from the hospitality and tourism industry

The aim of this study is twofold: to explore whether board characteristics (i.e. a sustainability committee, board independence, board diversity, and board diligence) lead to greater corporate social responsibility (CSR) performance, and to test whether CSR performance enhances firms' financial performance in the hospitality and tourism (H&T) industry. Data were collected from the Thomson Reuters Eikon database for the H&T firms listed there between 2011 and 2018. We employed panel data analysis, after which we ran robustness tests. The results indicated that having a CSR committee and female directors on the board are robust factors driving firms to show superior CSR performance in all dimensions, including environmental, social, and governance (ESG). Independent directors and directors' diligence selectively enhance the overall CSR score and individual pillars of CSR. Investigating the relationship between CSR performance and firms' financial performance did not produce a significant outcome. The findings propose a straightforward roadmap for H&T firms and policymakers to identify characteristics of CSR-friendly boards.     

Asymmetric effects of tourist arrivals on the hospitality industry

This study makes a unique contribution to the hospitality literature by examining the asymmetric effects of total tourist arrivals in six segments of tourist arrivals (pleasure, business, visiting relatives, conference, study, and others) on Taiwan’s hospitality industry. Regression test results confirm that the contribution of the overall tourist arrivals and both pleasure and visiting relatives segments to hospitality industry growth is not asymmetric, as it is found in periods of expansion and contraction. The beneficial effect of the business segment on hospitality industry growth is asymmetric, existing only in periods of business cycle expansion. However, the conference, study, and other segments make no significant contribution to hospitality industry growth. The study’s valuable policy implications offer guidance to Taiwan’s tourism authorities, hospitality business owners, and managers.