Deal characteristics and M&A performance: How do hospitality firms fare?

The global hospitality industry has experienced significant consolidation in the past several decades. While evidence in the general business literature suggests that the target firm shareholders gain instead of the acquiring firm shareholders, some studies in the hospitality industry have suggested that mergers and acquisitions (M&As) are also beneficial to acquiring firms. Using a comparative study design and a comprehensive sample over 41 years, we empirically examine whether M&As create more value in the hospitality industry than in other industries and whether certain deal characteristics may explain the potential performance differential. Overall, we find that M&As in the hospitality industry outperform M&As in non-hospitality sectors. When examining deal attributes, we find that relative size of target, cash method of payment, and an unlisted target are characteristics positively related to merger performance and help explain some of the performance differential. We contribute theoretically and empirically to the literature by demonstrating that industry and deal effects play an important role in M&A performance.     

A review of the literature on culture in hotel management research: What is the future?

This paper aims to provide insights into the development of research on culture in the hotel industry by reviewing the existing literature. A total of 107 journal articles published between 1985 and 2010 were retrieved from 12 refereed journals, all of which could be accessed online. The papers were categorized into six major groups according to Pizam's (1993) hierarchy of cultures, and were further sorted by year of publication, source, subject area, region of focus, and the nature of the research. National culture, organizational culture, and cross-cultural comparison were found to be the most popular research topics. In contrast, few studies have investigated industry, occupational, and corporate cultures in association with hotel management studies, prompting concern for future research. In summary, this review paper offers a first and important attempt to understand the development of research on culture in the hotel management field and identifies future research opportunities.     

How managerial ties affect hotels’ proactive environmental practices in China: The contingent role of institutional environments

Despite the increasing attention of environmental management in the hotel industry, few studies have examined how managerial ties impact hotels’ adoption of proactive environmental practices (PEPs) in China. Drawing on institutional theory, this study develops a model that investigates the differential effects of political ties and business ties on PEPs in the presence of important institutional factors. Using a primary survey and multiple secondary datasets on 190 Chinese hotels, we find that political ties inhibit a hotel’s adoption of PEPs whereas business ties facilitate PEPs. Moreover, advanced legal development and high levels of regional pollution reduce the impacts of both political ties and business ties on PEPs. We also test the relationship between PEPs and hotels’ financial performance. These findings provide novel insights into how managerial ties shape a hotel’s strategic behaviors for environmental protection under the influence of institutional environments in emerging economies.     

Effect of customer orientation and entrepreneurial orientation on innovativeness: Evidence from the hotel industry in Switzerland

While researchers have explored the relationship between customer orientation, entrepreneurship and innovativeness with business performance in different organizations, few such studies exist on the hotel industry. This current work investigates the potential influences of these variables on hotel industry performance. Data for this study was collected through personal questionnaires collected from 156 hotel managers and owners from German and French speaking cantons located in Switzerland in order to examine the interrelation between innovativeness, customer orientation, entrepreneurship and service business performance dimensions (i.e., profit goal achievement, sales goal achievement and ROI achievement). The findings support aspects of prior research, but also provide some new insights by exploring customer orientation and innovativeness simultaneously and revealing how these factors impact upon the performance of the Swiss hotel industry. In the light of existing literature, limitations and future research directions are subsequently addressed.     

Resort hotel service performance (RESERVE) – an instrument to measure tourists’ perceived service performance of resort hotels

Based upon a rigorous psychometric process of scale development through preliminary qualitative studies and a subsequent survey in the resort hotel setting, the authors propose the RESERVE scale as a comprehensive instrument for assessing resort hotel service performance. The proposed scale conceptualizes resort hotel service performance as a second-order, three-dimensional construct that assesses tourists' perceptions of setting, audience, and actors. The data supports the dimensional structure of RESERVE, providing empirical evidence for the scale's validity. The paper concludes with a discussion of implications and future research directions.     

境外酒店环境行为研究述评

文章以国际学术界具有较高权威性和较大影响力的旅游、管理学研究期刊中检索到的1995~2012年间的48篇酒店环境行为学术文献为研究文本,运用文献计量学方法,对文献的数量变化、期刊、研究地域范围以及研究主题、研究方法及研究风格等信息进行统计、分析和比较,提炼和分析了境外学者在酒店环境行为研究中的成果和观点,为酒店企业环境行为的研究和发展提供参考依据。     

Perceptual mapping of attributes and preferences: an empirical examination of hotel F&B products in Korea

A hotel's Food and Beverage (F&B) product is increasingly recognized as an essential component of strategic planning in the hotel business. However, despite the importance of hotel F&Bs, relatively little empirical research has been undertaken to determine major attributes of F&Bs and investigate customers' preferences for them. This study examines the attributes and customer preferences of hotel F&Bs for eleven super deluxe hotels in Korea. Factor analysis is first employed to identify the underlying dimensions of F&B attributes which determine how customers perceive F&B performance. A second technique, multidimensional scaling, is used to reveal customers' perceptions of how a given hotel's F&B differs from the competitors' and preferences of when that hotel's F&B is evaluated better than the others. A meaningful interpretation is delineated from the perceptual map of major F&B attributes and ideal points of customers. The findings suggest that for the ultimate success of F&B management a hotel's F&B manager must make the effective connection between the attributes of hotel F&B and ideal points perceived by customers in various dining-out situations.     

Impacts of peer-to-peer accommodation on the hotel industry: Hoteliers’ perspectives

The sharing economy is a new phenomenon that has considerable implications for traditional industries in general and the hospitality sector in particular. Although some recent studies have investigated the effects of sharing economy on the hotel industry, they primarily focused on quantifying its effects which are not exploratory for a phenomenon. This study attempts to achieve two research objectives. First, an exploratory qualitative method via a semi-structured in-depth interview is employed to investigate the impacts of P2P accommodation on the industry from hoteliers’ perspectives in China. Second, the current study provides valuable insights about traditional hotel marketing and operations. A social science perspective is proposed because prior hospitality research, merely in its commercial sense, fails to capture the essence of hospitality. Results indicate that P2P accommodation has effects on the hotel industry in terms of host–guest interactions, product offerings, staff empowerment, and platform collaboration. The study also suggests that the extent to which P2P accommodation impacts the hotel industry is different in terms of hotel star ratings and operating model. P2P accommodation and the hotel industry in China have a supplementary relationship. This study contributes to social studies of the hospitality literature by gaining insights from hotel senior management level. It also has great implications for the hotel marketing and management practices within the sharing context.     

Economies of Scale Could Be Key to Profitability

Abstract

The growth of China's tourism hotel industry has been accompanied by declining profitability. Using cross-province tourism hotels data of 2000, this study attempts to empirically quantify the impact of operation scale on hotel performance. Controlling for the effect of overcapacity, this study found a significant and positive association between operation scale and profitability. The findings suggest that to improve performance, the Chinese tourism hotel industry needs not only to reduce the overcapacity but also reverse the property-downsizing trend and pursue economies of scale.     

The relationship between CRM, RM, and business performance: A study of the hotel industry in Taiwan

This study aims to investigate the implementation of customer relationship management (CRM) and its effect on relationship marketing (RM) and business performance, through an analysis of the hotel industry in Taiwan. A survey on hotels, including general and tourist hotels, and bed and breakfasts (B&Bs) was conducted, and a total of 560 questionnaires were returned. The results showed that implementing CRM has a significant and positive influence on the RM effect, positively affecting business performance for both hotels and B&Bs. However, a comparison of the influential paths of relationship models between hotels and B&Bs showed that, for hotels, the Internet service and customer support functions of the CRM strategy are the main sources of influence on the RM effect and business performance, whereas for B&Bs, the marketing support function of the CRM strategy alone influences the RM effect and business performance. To achieve higher performance, the different types of hotel enterprises should understand their main advantage before implementing key CRM strategies.     

Impact of cultural values on technology acceptance and technology readiness

The impacts of cultural values on technology acceptance at national level have been investigated by previous studies, but not at individual level. Hence, the research question of the present study is what are the impacts of cultural values at individual level on technology acceptance? The detailed objective is to investigate the impacts of cultural values at individual level on the extended technology acceptance model by considering technology readiness. A research framework was developed, and the technology acceptance model was extended from the perspective of hotel employees. Results showed that highlighting long-term benefits of hotel technology such as workload reduction and performance enhancement can be considered to improve the perceived usefulness and perceived ease of use. In addition, introducing a new hotel technology under a less masculine cultural environment can greatly help hotel employees minimize their discomfort. Accordingly, an effective and successful hotel technology can be achieved.     

COVID-19 and China’s Hotel Industry: Impacts,a Disaster Management Framework,and Post-Pandemic Agenda

This exploratory study reviews the overall impacts of coronavirus disease 2019 (COVID-19) pandemic on China’s hotel industry. A COVID-19 management framework is proposed to address the anti-pandemic phases, principles, and strategies. This study also suggests that COVID-19 will significantly and permanently affect four major aspects of China’s hotel industry—multi-business and multi-channels, product design and investment preference, digital and intelligent transformation, and market reshuffle.     

Does positive affectivity moderate the effect of burnout on job outcomes? An empirical investigation among hotel employees

A conceptual model examining positive affectivity as a moderator of the influence of burnout on extra-role performance and quitting intentions is developed and tested. Data obtained from employees in the hotel industry in Turkey were used to assess the model. As hypothesized, burnout influences extra-role performance deleteriously and exacerbates quitting intentions. The results of the Chow test also reveal that positive affectivity serves as a moderator in reducing the detrimental impact of burnout on extra-role performance and quitting intentions. The findings and their implications are discussed.     

Theoretical,empirical, and operational models in hotel location research

This paper aims to review past literature on hotel location models and evaluate the state of the art, as well as set out future directions. This study divides hotel location models into three major categories: theoretical models, empirical models, and operational models. Four theoretical hotel location models are reviewed and discussed, including the tourist-historic city model, the mono-centric model, the agglomeration model, and the multi-dimensional model. Based on previous literature, six empirical models and three operational models of hotel location are elaborated. Furthermore, some challenges related to hotel location studies are discussed, and future research directions are provided. In particular, we advocate the development of more sophisticated hotel location models and the use of Geographic Information System (GIS) in hotel location analysis.     

Application of EMSs in a hotel context: A case study

In the last decade, hotel companies have become increasingly interested in the application of environmental management systems (EMSs). However, research on the effectiveness of EMSs in the hotel industry has been sparse. This study aims to address this research gap by exploring and evaluating the application of EMSs in a hotel context. Various approaches to EMSs are identified in the literature on environmental management and EMSs, including six core EMS elements specific to the hotel industry context. To develop a rich and deep understanding of the application of EMSs in the hotel industry, a qualitative case study was conducted in which data were collected from three levels of employees, executive, supervisory and general, from an international hotel. A series of in-depth, semi-structured interviews were conducted and relevant documents were collected for analysis. Four influential factors were identified in the formation stage of the hotel's EMS: (1) Corporate governance, (2) Piloting activities, (3) Initial gap analysis and (4) Partnership with external consultancy. It was also found that the six elements identified in the environmental management literature play important roles in the implementation of EMS in this case. In addition, although EMSs can help promote a bottom-up approach to change, a top-down approach to implementing EMSs was more suitable for a hotel with a predominantly Chinese workforce, due to cultural issues. This study identified a number of factors specifically related to EMSs to complement mainstream environmental management research.     

Pygmalion leadership: Theory and application to the hotel industry

ABSTRACT

This research investigates the role of Pygmalion leadership and the influences of employees’ trust in a leader, trust in an organization, and job engagement on task performance in the hotel industry. Through examining Pygmalion leadership, trust, and engagement in the literature, this research establishes and tests a model to identify the interrelation among four dimensions of Pygmalion leadership (e.g., climate, output, input, and feedback), trust in a leader, trust in an organization, job engagement, and task performance. Using data collected from hotel employees, this study finds that climate, output, and feedback are critical for nurturing two dimensions of trust that enhance job engagement and task performance.     

Understanding the influence of polychronicity on job satisfaction and turnover intention: A study of non-supervisory hotel employees

The hospitality industry is characterized as a work environment where time use is important and where switching behavior among multiple tasks is frequently required within a given time period. These work environments promote polychronic behavior, which requires employees to deal with two or more activities in the same time block (Bluedorn et al., 1999). The purpose of this paper is to present the results of a study examining the interrelationship among polychronicity, job satisfaction, and turnover intention within a hotel context. The sample (n = 609) was collected from non-supervisory employees of two hotels located in the southwestern United States. Structural equation modeling (SEM) was utilized to empirically test the proposed hypotheses. Our results provided evidence that polychronicity significantly contributed to job satisfaction and turnover intention. Implications of these results and directions for future research are discussed.     

Measuring hotel performance: Using a balanced scorecard perspectives’ approach

This paper provides an examination of hotel performance research published in the seven leading hospitality and tourism journals from 1992 to 2011, through the lens of the balanced scorecard (BSC). The review seeks to answer three questions. What BSC perspectives are included in hotel performance research published in major hospitality and tourism journals? What are the trends and implications for future hotel performance research? What are the main geographical areas of publication outputs?Eleven hypotheses were tested using a database of 138 articles that fully met the key word selection criteria of hotel, BSC and performance. The results suggest hotel performance attracts widespread attention from hospitality scholars, but significant gaps remain. Researchers have recognised the benefits of including financial and non-financial indicators. Yet, more research is required in this area to offer hotel organisations better approaches to the management of their performance. We conclude by identifying three research gaps.     

Impacts of positive and negative corporate social responsibility activities on company performance in the hospitality industry

In spite of growing concern for corporate social responsibility (CSR) in various industries including the hospitality industry, the relationship between CSR activities and financial performance is a rarely examined subject in the hospitality context. Especially, research measuring the separate impacts of positive and negative CSR activities on companies’ financial performances remains, as yet, unconsidered. Thus, this study examines different impacts of positive and negative CSR activities on financial performance of hotel, casino, restaurant and airline companies, theoretically based on positivity and negativity effects. Findings suggest mixed results across different industries and will contribute to companies’ appropriate strategic decision-making for CSR activities by providing more precise information regarding the impacts of each directional CSR activity on financial performance.