Political connections,guanxi and adoption of CSR policies in the Chinese hotel industry: Is there a link?

This research note examines the existence of a potential relationship between the political connections possessed by senior Chinese hotel managers and their adoption of corporate socially responsible (CSR) policies in the Chinese hotel industry. Given (a) China’s Green Hotel policy and (b) a broader context where, it is argued political connections and guanxi are a means by which the State seeks to advance desired economic reforms and counter corruption practice, it is suggested that those hotels with better political connections may show evidence of higher levels of awareness and adoption of CSR policies. The data are derived from a usable sample of 404 senior hotel managers. The findings show a positive relationship between the variables of ‘political connectedness’ and ‘CSR adoption’ in areas relating to environmental and philanthropic action, but less of a relationship in other CSR areas such as human resource management and guest relationships. The implications for future research are discussed.     

Is more better? The relationship between meeting space capacity and hotel operating performance

This study examines the effect of meeting space capacity on hotel operating performance. We use Resource-Based View (RBV) of the firm as the theoretical foundation. We employ a national-level dataset with more than 20,000 hotels in the United States for the 2007–2012 period. We find that meeting space has a non-linear effect on hotel operating performance. That is, at low levels of meeting space, meeting space capacity is negatively related to hotel operating performance. At high levels of meeting space, meeting space capacity has a positive influence on operating performance. These findings provide insights for hotel owners, developers and practitioners in planning hotel meeting space capacity.     

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.     

Does Triple Bottom Line reporting improve hotel performance?

Triple Bottom Line (TBL) reporting is a comprehensive approach to achieve sustainability as it integrates reporting on environmental, social and financial issues. While society is pushing hotels to increase their commitment to TBL reporting, opinions are divided as to whether TBL reporting affects hotel performance. The present study uses the Data Envelopment Analysis (DEA) method to address this important question. Our results, based on a sample of Slovenian hotels, support the hypotheses that more extensive reporting on environmental, social and financial issues lead to better hotel performance. We show that reporting on environmental issues has a slightly higher impact on performance than reporting on social and financial issues. We discuss the implications of the study and provide directions for future research.     

Is restaurant franchising capital a substitute for or a complement to debt?

Since Oxenfeldt and Kelly’s 1969 study, the resource scarcity hypothesis has been considered a representative theory to explain franchising motivations. Whether franchising capital is a substitute for or a complement to debt has been discussed in the franchise literature but the relationship remains unclear. Using Frank and Goyal’s (2003) financial deficit model along with trade-off and pecking order theories, this study shed light on whether franchising capital acts as a substitute for and/or to complement debt in the restaurant industry. This study discovered that the adjustment speed of long-term debt leverage was faster for franchise restaurant firms than non-franchise restaurant firms. Further, the average long-term leverage target was lower for franchise restaurants. Consequently, this study revealed that franchising capital functioned as a substitute for long-term debt. In contrast, the adjustment speed of short-term debt leverage was slower for franchise restaurants and, thus, franchising capital complemented short-term debt.     

The relationship between hotel employees’ cross-cultural competency and team performance in multi-national hotel companies

In this study, the authors explored the benefits of understanding employee cross-cultural competency and strengthening team performance, which are essential for improving the organizational effectiveness of multi-national hotel companies as they expand globally. Data were collected from six multi-national hotel companies in Thailand. A total of 738 valid questionnaires were obtained and analyzed using structural equation modeling to test the proposed relationships, in which cross-cultural competency was developed as determinant of multi-cultural team performance. The results indicate that cross-cultural competency had a positive, direct effect on team performance. The authors provide significant cross-cultural theoretical and practical management advice for stakeholders in the hospitality industry. In addition, the authors establish the foundation for future studies into cross-cultural competency and multi-cultural team performance in the context of Thai multi-national hotels.     

How does social capital influence the hospitality firm's financial performance? The moderating role of entrepreneurial activities

Although previous studies have examined the relationship between social capital and firm performance under boundary conditions such as firm age, industry characteristics, and institutional conditions, the literature is silent on the types of firm activities linking social capital to financial performance. This study investigates the moderating role of firm-level entrepreneurial activities (service innovation, corporate venturing and strategic renewal) on the relationship between social capital and financial performance in a sample of Chinese hotels. The findings indicate that the interaction of external and internal social capital has a positive effect on financial performance. In addition, innovation and corporate venturing enhance the relationship between financial performance and social capital. To achieve a competitive advantage, hospitality firms should not only accumulate social capital but should also deliberately implement strategies that enhance entrepreneurial activities to fully unleash the potential of social capital.     

Holiday recovery experiences,tourism satisfaction and life satisfaction – Is there a relationship?

This research examines the relationships between holiday recovery experiences and life satisfaction through mediating variables of tourism satisfaction. Derived from a sample of 777 American respondents, it was found that individuals who were able to control what they want to do, feel relaxed and detached from work, and have new and challenging experiences during a holiday vacation were more likely to be satisfied with their holiday experiences and their life in general. The paper concludes with recommendations for the success of tourism businesses as well as the enhancement of tourists' senses of well-being.     

How do consumers’ perceptions differ across dimensions of corporate social responsibility and hotel types?

This study develops three hypotheses regarding corporate social responsibility (CSR) in the context of the hotel industry. First, the study examines a ranking of consumers’ perceived importance of the four CSR dimensions proposed by Carroll’s hierarchy of CSR in 1991, expecting the following orders: philanthropic, ethical, legal, and economic dimensions, from most to least important. Second, the study investigates the relationship between consumers’ perceived importance of and their overall support for CSR. Third, the study introduces the type of hotel (for example, economy, mid-scale, and upscale) as a moderator to provide a better explanation of the relationship between consumers’ perceived importance of the CSR dimensions and support for CSR. Contributions to the CSR literature in general, and also specifically relating to the hotel context, and managerial implications are discussed.     

The corporate social responsibility–financial performance link in the U.S. restaurant industry: Do economic conditions matter?

This study examines the role played by economic conditions (recessionary periods) on the link between corporate social responsibility (CSR) and corporate financial performance (CFP) in the U.S. restaurant industry. The choice of industry setting is based on the fact that the restaurant industry is subject to consumer discretionary expenditures and is thus highly sensitive to the state of the economy. This study further examines the relationship between CSR and CFP by dichotomizing CSR activities based on whether they are related to the firm's core operations or not, thus parsing out the effect of operations-related (OR) and non-operations-related (Non-OR) CSR activities, providing a more nuanced explanation of how some CSR activities may be more beneficial than others, to firm value in hard economic times.     

Do regional factors matter? Determinants of hotel industry performance in China

The hotel industry is deeply embedded in local regional conditions, though the influence of regional factors is seldom investigated. Three key hotel industry metrics, Revenue per Available Room (RevPAR), Average Room Rate (ARR), and rooms rented, were examined for their determinants using ordinary least squares and negative binomial regression models on key endogenous and exogenous (regional) factors, including Destination Attractiveness and Capacity, Business and Commercial Environment, Image and Openness, and Tourism Professional Specialization. Using China as a case study, and at different hotel star designations (2- to 5-star hotels), the results show that RevPAR is determined mainly by labor quality and Tourism Professional Specialization. Particularly, regional factors significantly affect ARR and rooms rented. The influence and sophistication of regional factors increases with higher star designations. This paper highlights links between the hospitality industry and regional economic development, which should be considered by both the hotel industry and tourism policy makers.     

Tourists and community development: corporate social responsibility or tourist social responsibility?

Abstract

Corporate social responsibility (CSR) activities are usually determined, in large part, by head office and by shareholder interests. This article explores the unique case of tourism CSR which has a distinctive relationship with local communities. CSR programmes of hotels and resorts in the Global South are increasingly creating opportunities for tourists to engage directly with communities, yet the relationship between tourists and CSR – and how this impacts on community development outcomes – has so far been overlooked. Based on two separate research projects undertaken in Zambia and Fiji which examined hotel CSR from community perspectives, we show how these programmes were largely motivated, driven and financed by tourists. This suggests that, in the accommodation subsector of tourism, CSR is not only being shaped by head office, but that tourists can play a key role, leading us to coin the term TSR (tourist social responsibility). For community development initiatives in particular, this gives rise to both challenges and opportunities.     

Does size matter? Corporate social responsibility and firm performance in the restaurant industry

Despite an increasing number of hospitality studies on the link between corporate social responsibility (CSR) and corporate financial performance (CFP), the literature has predominantly focused on the CSR–CFP relation without considering moderating factors. Consequently, the current study introduces firm size as a potential moderator on the CSR–CFP relationship. Performing a two-way fixed-effects model by firm and year with Newey-West standard errors, this study finds that firm size moderates the effect of positive CSR on CFP while it does not moderate the effect of negative CSR on CFP in the U.S. restaurant context.     

Transnational tourism education and student approaches to learning: is there a mismatch?

This article employs a novel approach by investigating Chinese students from a transnational tourism management programme in Hong Kong and Chinese students studying on a similar programme at the degree-awarding UK university. This quantitative study investigates whether there are any differences between two groups of students in terms of their approaches to learning, preferred learning and teaching methods and their satisfaction with the programme. The findings demonstrate significant differences between the two cohorts, indicating that a programme cannot be easily exported. The implications of the findings for the transnational curriculum, learning and teaching practice and theories of student approaches to learning are discussed.     

Corporate social responsibility: The disclosure–performance gap

As increased stakeholder pressure requires companies to be transparent about their CSR practices, it is essential to know how reliable corporate disclosure mechanisms are, testing the gap between corporate social responsibility claims and actual practice. This study benchmarks corporate social responsibility policies and practices of ten international hotel groups of particular importance to the European leisure market. We found that corporate systems are not necessarily reflective of actual operations, environmental performance is eco-savings driven, labour policies aim to comply with local legislation, socio-economic policies are inward looking with little acceptance of impacts on the destination, and customer engagement is limited. Generally larger hotel groups have more comprehensive policies but also greater gaps in implementation, while the smaller hotel groups focus only on environmental management and deliver what they promised. As the first survey of its kind in tourism, both the methodology and the findings have implications for further research.     

Advance booking and hotel price variability online: Any opportunity for business customers?

Is it possible for business customers to effectively adjust their purchasing strategies, as a response to revenue management? We consider daily online best available rates for a panel of 357 hotels in Milan and Rome, up to an advance booking of 29 days.We analyse price trajectories, finding that dynamic pricing strategies with no established trend towards the arrival date are prevalent, with a predominance of decreasing trajectories for lower-scale hotels in Milan during fairs. We show that price levels are explained by a variety of structural determinants. We quantify the effects of advance booking, room quality, services, competition, seasonality and fairs, underlining their different importance on leisure and business destinations. Other features, such as breakfast and refunding options, appear to be used as marketing tools to differentiate rooms, keeping a low pace in price adjustment. Managerial implications are discussed, with reference to both corporate travel departments and hôteliers.     

Are stars a good indicator of hotel quality? Assymetric information and regulatory heterogeneity in Spain

This paper proposes a methodology for continuous monitoring of the hotel sector based on “objective” and demand criteria. The method applies Multiple Correspondence Analysis (MCA) to hotel facilities and services. Using that indicator the impact of differing regional regulations relating to hotel classifications is duly analysed, based on information from The Official Guide to Hotels in Spain (OGHS). The results show that even though official stars classification might be considered a good indicator of quality, there also is significant overlapping with regard to levels of quality between adjacent official categories. It is suggested that the very coexistence of 17 different regulations is one of the reasons for this.     

Ethics and corporate social responsibility – An analysis of the views of Chinese hotel managers

Based on a sample of 257 Chinese hotel managers, this paper examines the ethical principles to which these managers adhered. The premise is that any application of the principles of corporate social responsibility (CSR) will be facilitated or inhibited by the degree to which management holds to a strong ethical stance. Developing a questionnaire derived from different sources such as the Forsyth Ethics Position Questionnaire and the 12 golden standards of Tao Zhugong developed in the 5th century BCE, a principal components analysis of the scores on a 35 item scale indicated five components to ethical perspectives: namely respect for individuals, tolerance of degree of relativity in moral standards, the role of corporations in current society, expediency in business and adherence to CSR.     

Business travellers’ hotel expectations and disappointments: A different perspective to hotel attribute importance investigation

Hotel attribute importance studies have a long tradition in hospitality research. This study investigates the issue for business travelers by asking the respondents to state their expectations and disappointments / dissatisfaction in an open question format instead of rating the importance of attributes directly.

The aim of the study is twofold: (1) to learn about expectations and past disappointments of this particular segment to provide additional insight for customizing hotel offers and (2) to investigate whether the findings reported in literature so far are mirrored or not.