International franchising: Opportunities for China's state-owned hotels?

The hotel industry in China faces global competition. Most of the state-owned hotels have struggled during the period of transition from a planned economy to a market economy. Furthermore, international franchising hotel chains have entered China with their different operation modes. Could the franchising hotels bring opportunities for state-owned hotels? In an attempt to answer this question, the researchers carried out a study of state-owned independent hotels and state-owned franchised hotels to analyze their external and internal business factors, their intentions to join international franchise operations and the international hotel franchisors in China. The research technique used was qualitative. Two rounds of in-depth interviews were conducted. Content analysis was used in the data analysis. Results indicate that the majority of state-owned independent hotels have intentions to join an international franchise operation in the next 5 years. It also identified major factors affecting the franchising of state-owned hotels in China. However, franchising may not be attractive to those hotels that want to keep their management culture and characteristics. Implications of the study were discussed. Recommendations were provided to the state-owned hotels. Future research studies have been suggested to examine the relationships between franchisors and franchisees.     

International hotel development: A study of potential franchisees in China

Franchising is a strategic partnership formed by the franchisor and the franchisee, and consequently partner selection between the franchisor and the franchisee is critical to the long-term success of a franchise. However, the literature has primarily taken the viewpoint of franchisors, but failed to explore the perspective of the potential franchisees. As China represents a significant growth opportunity for international hotel franchisors, this study examines the perspective of China's domestic hotel operators regarding franchising and analyzes a mix of factors that may affect such perspective. The study of 182 Chinese hotel general managers shows that China's hotel practitioners have considerable interest in franchising and are knowledgeable about the concept as it pertains to hotels. The findings indicate that the length of work experience and educational background of Chinese hotel operators may influence their franchising preferences. Hotel chains that have strong brand awareness, supportive centralized reservation systems, and offer relatively high returns on investment at relatively low franchise fees, are most attractive to potential Chinese franchisees.     

Types of agglomeration effects and location choices of international hotels in an emerging market

When international chain hotels are seeking new locations in which to establish new properties, local knowledge of those locations is essential for success. By incorporating agglomeration and internationalization research, this study investigates how international hotels can acquire that local knowledge from the existing hotels. The study presents two different kinds of hotel agglomerations (same-country-of-origin and higher-differentiation agglomerations) as sources of local knowledge and shows how international hotels might select their locations based on types of agglomerations and their entry strategies. The study employs conditional logistic regression, using a sample of international hotels in China. Results indicate that international hotels, especially those with franchising, are more likely to choose a location where the hotels from the same country of origin are highly located. Because they share the same culture and business practices, new hotel entrants may more easily assimilate the local knowledge that compatriot hotels have accumulated.     

Climate change adaptation in Cambodia's coastal hotel sector: An analysis of adaptation measures and hotel characteristics

After decades of profound challenges Cambodia has seen twenty years of stability and a flourishing tourism industry, however, it has also been identified as highly vulnerable to climate change thus putting the country's long-desired economic development at risk. Sustainable Development Goal 13 ‘Climate Action’ is critical for the continued economic success of Cambodia's vulnerable coastal tourism sector, but little is known about the hotel sector's adaptation responses and the differences between key hotel characteristics such as star rating, size, ownership and length of operation. This article examines the adaptation actions by 50 Cambodian coastal hotels by distinguishing between five adaptation categories. Subsequently, the analysis is deepened through a comparative analysis of key hotel characteristics. Although adaptation measures varied considerably between hotels they were more comprehensive and numerous than expected. Furthermore, patterns emerged that saw large hotels apply high levels of adaptation while budget and Khmer-owned hotels reported limited adaptation measures.     

Differentiation of cancellation policies in the U.S. hotel industry

Hotel cancellation policies not only generate revenues but also affect consumers’ reservation behaviors. The objective of this study is to develop the typology of hotel cancellation policies with regard to cancellation fees and deadlines. A nationwide survey of cancellation policies was conducted in order to understand the cancellation policies that are practiced in the U.S. hotel industry. Multiple correspondence analysis was used to spatially map cancellation policies with fees and deadlines, followed by a two-step cluster analysis identifying hotel segments. The results indicate that U.S. hotels could be grouped into two mutually exclusive segments. Each of the hotel segments possesses unique characteristics. This study shows that hotel differentiation is important in setting cancellation policies.     

A social media analysis of the contribution of destinations to client satisfaction with hotels

To what extent do the ratings of hotels in social media depend on the hotels themselves and to what extent do they depend on the destination of the hotel? That is, if we were able to place a hotel with the same characteristics and services at two different destinations, would both have the same rating or would they differ? By using multilevel regression analysis, we have quantified the extent to which differences in client satisfaction with hotels can be attributed to the destination in which the hotels are located. We have measured this through ratings provided through social media outlets. Data downloaded from TripAdvisor from a sample of 7173 hotels were used. After controlling for specific variables, an 11.38% of the variance could be attributed to the destination. Thus, both hotels and destination management organizations (DMOs) are involved in client satisfaction and must work jointly to secure it.     

Are innovations relevant for consumers in the hospitality industry? A hedonic approach for Cuban hotels

This paper evaluates the impact of innovative activity in the hotel industry on the willingness to pay by consumers. To this end, we estimate a hedonic price function where innovation is identified indirectly through certain attributes that previous literature has linked with hotel innovativeness. The test is performed on a representative sample of Cuban hotels, considering a large number of attributes of hotels and rooms. To solve the usual problems of collinearity, a million alternative models are estimated by choosing the variables included in a random manner and obtaining the final coefficients by means of an internal meta-analysis. The results are completed with a variance decomposition analysis. The results highlight the importance of the attributes linked to innovation and internationalization on the determination of room prices in Cuban hotels: membership of international hotel chains, high quality offers, diversified rooms, and adaptability to specific needs of each client.     

在线信息对酒店网上预订的影响研究——基于携程网酒店在线预订数据的分析

在线信息如何影响消费者购买决策是酒店在线服务的一个关键问题。文章基于携程网1092家酒店网上预订数据,通过对数线性回归模型,分析了酒店特征信息、顾客评论信息和预订平台推荐信息对4类不同等级酒店在线预订的影响。研究表明：顾客评论信息对各类酒店网上预订影响最显著,但对五星级酒店的影响最小;酒店特征信息对五星级酒店网上预订影响最大,其中客房价格信息对四星级、三星级和经济型酒店的影响不显著;推荐信息对四星级酒店影响很显著,但其中的用户评级对四星级以外的酒店无显著影响。文章通过对顾客评论信息中的5方面内容分析发现：顾客对酒店设施、服务水平、周边环境的评价均显著影响酒店网上预订,而客房卫生评价对酒店预订的影响不显著。该研究可为酒店在线分类管理与客户信息服务提供指导。     

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.     

The causality examination between demand uncertainty and hotel failure: A case study of international tourist hotels in Taiwan

The hotel business is highly sensitive to economic cycles, as the industry faces high frequency and high fluctuation of uncertainty over the demand for lodging services. Without a thorough consideration on the issue, hotels may undergo a business crisis. This research therefore investigates the influence of demand uncertainty on hotel failure by using the operation data of international tourist hotels in Taiwan during 1995–2008. The analysis applies two stages of estimation. The first stage employs a first-order autoregressive model, AR(1), to model lodging demand uncertainty. The second stage estimates the likelihood of hotels’ failure by using a logit model. The results are supportive to determine that the demand uncertainty causes hotel failures.     

How psychological and contextual factors contribute to travelers’ propensity to choose green hotels?

Despite the growing popularity of green hotels, there remains a dearth of research examining travelers’ intentions to choose green hotels. The study addresses this research gap by developing and testing an integrated model of green hotel behavior in an emerging market of India. We use a sequential approach of SEM and fuzzy set qualitative comparative analysis on 347 responses collected from Indian travelers to gain a more in-depth understanding of the role of biospheric value, green trust, willingness to pay premium, attitude, subjective norms, and perceived behavioral control in determining green hotel intentions. The findings show that presence of green trust is a significant and necessary condition for green hotel choice. Additionally, absence of willingness to pay premium, biospheric value, attitude, and subjective norm were found to deter travelers from choosing green hotels. These findings offer unique insights for managers in developing marketing strategies to enhance travelers’ green hotel adoption.     

Hotel Guest Satisfaction and Brand Performance

ABSTRACT

The value and significance of guest satisfaction, brand management, and franchising in the hotel industry have been well documented and researched as independent topics. While previous research has suggested that franchising has an overall negative effect on hotel quality, it has rarely investigated the important links between hotel brand performance and guest satisfaction, and the role of brand franchising strategy in the relationship between hotel brand performance and guest satisfaction. This study examines the relationships among guest satisfaction, revenue performance and growth, and franchising strategy at the hotel brand level. Results indicate that guest satisfaction is a key to brand growth, while the positive effect of guest satisfaction on brand revenue performance is moderated by the extent of franchising within each brand.     

Location advantages of lodging properties: A comparison between hotels and Airbnb units in an urban environment

This study aims to investigate various types of location advantages that contribute to lodging property performance. Using monthly revenue data for individual urban hotels and Airbnb units in Houston, Texas from 2014 to 2016, we apply the Hausman-Taylor model to estimate the effects of location factors. Several factors are confirmed, including accessibility to points of interest, transport convenience, the surrounding environment, and market conditions. The overall effect of location advantage is more substantial for urban hotels than Airbnb units. Findings do not reveal a sizable competition effect between urban hotels and Airbnb units. Furthermore, we unveil factors associated with location advantages for different hotel classes and Airbnb types by estimating the model using different sub-samples.     

Emerging Definitions of Boutique and Lifestyle Hotels: A Delphi Study

Despite growing interest in the boutique and lifestyle sector of the lodging industry, there is not an accepted definition of either “boutique hotel” or “lifestyle hotel.” Boutique and lifestyle hotel strategies provide hotel companies with important points of differentiation in an increasingly competitive marketplace. The current study determined definitions using a Delphi analysis of responses from a diverse group of experts from the lodging industry. Forty-one panel members were involved in the process that was undertaken with three rounds of questions. The study determined that boutique hotels are best characterized as small, stylish hotels that offer high levels of service. Lifestyle hotels are described as innovative and provide more of a personal experience than so-called “branded” hotels.     

Are all five points equal? Scaling heterogeneity in hotel online ratings

Online hotel ratings play a critical role in hotel online reputation building and greatly influence travelers’ decision making. However, self-reported online ratings are vulnerable to scaling heterogeneity due to reviewers’ unique response styles, leading to some incomparability issues. A research framework was developed based on latent state-trait theory and empirically tested using hotel online review data from TripAdvisor. A hierarchical ordered probit (HOPIT) model, which captured threshold differences in hotel online ratings, confirmed the presence of scaling heterogeneity and response styles in the online rating context. Results indicated that younger travelers, women, and travelers with less review expertise used lower thresholds when rating hotels online. Business travelers had the highest rating threshold compared to other types of travelers. Guests staying in high-class hotels tended to have more extreme response styles than those staying in low-class hotels. These findings offer valuable insights for hotel managers and online rating/review sites.     

What are the key success factors for strategy formulation and implementation? Perspectives of managers in the hotel industry

This study investigates how hotel managers describe strategy and identify key success factors for its formulation and implementation. The study analyzes qualitative data collected through semi-structured interviews with property level top managers of hotels in Hong Kong. The findings show that hotel managers prioritize competition analysis and macro-environmental conditions over internal characteristics such as teamwork in strategy formulation. In the implementation phase, however, internal considerations such as employee involvement and strategic consensus are given prominence. This study provides a significant contribution by examining how top level practitioners in the industry interpret success factors in their strategic management efforts, and it highlights a largely neglected area in the hospitality and tourism management literature.     

A comparison of destinations’ impacts on hotel rates

The impact of destinations’ attributes on hotel rates in different locations has been insufficiently compared the existing literature. This study sought to apply the hedonic pricing method to measure and compare how room prices are affected by factors that are both external and inherent to hotel companies. After collecting nearly all the data regarding hotel features that consumers can use to make choices about accommodations on the TripAdvisor website, different models were developed for each city and season. The results suggest that hotels in Barcelona are more dependent on external conditions than hotels in Madrid are. In addition, hotels in both cities are more affected by external conditions during the high season. This paper discusses these and other results, as well as their implications.     

Organizational Culture Requirements for High Levels of Knowledge Usage From Learning Activities Among Hotel Managers

The goal of the present study was to determine the learning culture factors important to high levels of knowledge usage at work among hotel managers. Hence, 121 managers from 41 hotels on the island of Jamaica were surveyed and the data analyzed using correlational analysis. The researchers found that as learning culture at work strengthened, so did the extent to which the hotel managers used knowledge acquired from their education, training, experience, and networking to solve problems and innovate on the job. The researchers also found six learning culture characteristics important to high levels of knowledge usage among the managers, with the most noteworthy being interdepartmental collaborations.     

Algarve hotel price determinants: A hedonic pricing model

This study sought to assess customers' willingness to pay for a wide variety of characteristics and attributes of hotels in Portugal's Algarve region. After collecting nearly all the information available on TripAdvisor for hotels in this region, a hedonic pricing model was developed using a database of 9992 cases. The results suggest that – after standardisation – the most important variable shaping Algarve hotel room rates is the previous day's prices. When associated with a family-friendly hotel, star category and services have a greater value than beaches or golf courses do. Customers also appreciate some types of hotels, such as boutique, quaint or trendy hotels, but view others negatively, such as family-friendly or business hotels. Only the specific location of Falesia Beach adds value, although the Algarve is a desirable destination overall. Both destination and hotel managers can use the proposed method to analyse data for their region on customers' propensity to pay.     

Beyond smart systems adoption: Enabling diffusion and assimilation of smartness in hospitality

The purpose of this study is to investigate the diffusion of smartness in hospitality and, furthermore, the assimilation of smart technologies in hotel business units. A qualitative exploratory investigation with an abductive research approach was adopted and data were collected through in-depth interviewing of 39 hotel managers in the highly advanced hospitality industry in the United Arab Emirates (UAE). Analysis of the data was conducted inductively to elicit themes within the technological, organizational, and environmental contexts and to mark trailheads for future research. The study yielded important insights into how barriers to the diffusion of smartness can be surpassed, and how smart technologies can be assimilated into existing hotel organizational structures and operations. The proposed aggregate dimensions for achieving assimilation of smart technologies in hotels highlight the importance of organizational sustained learning and smart networks synergism while shaping configurational system innovations.