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.     

Wellness hotel: Conceptualization,scale development,and validation

This study defines the notion of a wellness hotel, generates a wellness amenity inventory list, and develops the Scale of Wellness Hotel Amenities (SWHA) to measure the level of wellness provided by hotels. The result reveals a 16-item measurement scale consisting of three dimensions: environmental wellness, physical wellness, and mind wellness. Incorporating qualitative and quantitative design and utilizing multi-source samples, we conducted five studies to demonstrate the face, convergent, discriminant, and nomological validity of the SWHA. This study fills an important research gap since no measurement scale is currently available to measure the wellness level of hotels. With an in-depth examination of customers’ perception of wellness hotels, this study provides a tool to identify wellness amenities that customers demand and to evaluate the performance of wellness hotels. The contributions, implications, and limitations of this study are discussed, as well as the recommendations for future studies.     

Consumers’ willingness to pay for green initiatives of the hotel industry

This paper examines hotel guests’ willingness to pay a premium for environmentally friendly and sustainable practices of the U.S. hotel industry. Specifically, the goal of this research is to investigate the relationship between the level of U.S. hotel guests’ environmental concern, measured by the New Ecological Paradigm Scale (NEP) and their willingness to pay (WTP) a premium for hotels’ “green practices.” This study found that U.S. hotel guests with higher degrees of environmental concerns declare a higher willingness to pay premiums for hotels’ green initiatives. This avowed willingness supports the social identity theory and the means-end theory. In addition, based on the affect-based complementarity proposition, this study also examined the effect of hotel type on WTP in the U.S. hotel industry, and found that luxury and mid-priced hotel guests are more willing to pay premiums for hotels’ green practices than economy hotel guests.     

Extending the scope of hotel client reactions to employee injustice: Hotel employer reviews on the Internet

Third-party literature is concerned about the way others perceive what happens in organizations. When dealing with the perceived justice of the employer-employee relationship, it has mainly adopted an on-site approach. The scarce research focusing on the consequences of perceived justice for client variables in hotels has shown that it can impact client loyalty. In this study, we adopt an on-line view, and we analyze how the comments posted by hotel employees on the Internet about their work conditions influence guest perceptions. This topic is relevant because it is well known that clients’ perceptions influence client satisfaction, WOM and revisit intentions. Through an experiment based on real hotel employer reviews, results confirm that these comments have an impact on the organizational image dimension of service quality, hotel clients’ satisfaction, WOM, and revisit intentions. Thus, as occurs with client eWOM, hotel managers should be aware of these comments and manage them appropriately.     

The characteristics of hotel websites and their implications for website effectiveness

Hotels are increasingly taking advantage of the Internet as a marketing tool able to provide direct contact with customers, but is the full potential of this tool being exploited? This article constructs and validates an instrument for the measurement of website characteristics and relates those characteristics to website performance, using structural equation modeling. The results indicate that small and medium size hotels in the Balearic Islands in Spain, a developed tourist destination, and in the South of Brazil, a developing destination, are using their websites as mass media tools; ignoring the potential for interactivity and one-to-one communication. It is suggested that hoteliers should adopt a more strategic approach to the Internet, preparing the ground for direct contact with customers.     

Work stress and well-being in the hotel industry

Employee stress is a significant issue in the hospitality industry, and it is costly for employers and employees alike. Although addressing and reducing stress is both a noble goal and is capable of resulting in expense reductions for employers, the nature and quantity of hospitality employee stress is not fully understood. The first aim of this study was to identify common work stressors in a sample of 164 managerial and hourly workers employed at 65 different hotels who were each interviewed for eight consecutive days. The two most common stressors were interpersonal tensions at work and overloads (e.g., technology not functioning). The second aim was to determine whether there were differences in the types and frequency of work stressors by job type (i.e., managers versus non-managers), gender, and marital status. Hotel managers reported significantly more stressors than hourly employees. There were no significant differences by gender or marital status. The third aim was to investigate whether the various stressors were linked to hotel employee health and work outcomes. More employee and coworker stressors were linked to more negative physical health symptoms. Also, interpersonal tensions at work were linked to lower job satisfaction and greater turnover intentions.     

Measuring hotel performance using the balanced scorecard: A theoretical construct development and its empirical validation

A key contribution to the performance measurement literature was the introduction of the balanced scorecard (BSC) in 1992. However, despite its appealing rationale in capturing different aspects of performance and its wide and increasing use in a range of industries, there has been no rigorous psychometric development and testing of performance scales from the BSC perspective in the hospitality industry. In order to contribute to fill this gap, this study adopted a two-stage design seeking to develop and test a scale of organizational performance using the BSC in the hotel sector. In Stage 1, the authors generated and refined the scale items, recognizing unique characteristics of the hotel sector. In Stage 2, the scale has been assessed in terms of dimensionality, validity, and reliability. The findings suggest that managers do make a meaningful distinction between five aspects of hotel performance. Unexpected results, contributions, limitations, directions for future research, and managerial implications are all discussed.     

Effects of hotel website photograph size and human images on perceived transportation and behavioral intentions

Travelers have been shown to use the Internet as their primary source of information for locating and booking hotel accommodation, while various website dimensions have been known to influence consumer behavior. Yet, there is no consistency in the way that hotels display their website photographs, especially in relation to photograph size and content, and few studies have investigated this important domain. This study examines the influence of hotel websites’ pictorial information (i.e., photograph sizes and human images) on perceived transportation, booking intentions and willingness to pay more. Analyzing 247 responses with structural equation modeling, large photographs increase transportation, which, in turn, increases booking intention and willingness to pay more. Large photographs are most effective when human presence is absent, while the effect of small photographs is improved with human presence. This study extends transportation theory by demonstrating that transportation can occur in non-narrative scenarios, specifically through photographic images.     

Achieving task and extra-task-related behaviors: A case of gender and position differences in the perceived role of rewards in the hotel industry

The study drew on a sample (n=284) from the hotel industry in Hong Kong to advance our understanding about the perceived effectiveness of various reward instruments in achieving specific task and extra-task performance behaviors. We found that the perceived motivating value of a reward varied according to its type. Non-financial rewards, for example, were found to play a prominent role in achieving extra-task performance dimensions. Employee characteristics also affected the perceived performance implications of various rewards. Nevertheless, caution must be exercised when interpreting the results, as other factors may also influence reward–performance relationships, thus paving the way for future research.     

Determinants of using operating lease in the hotel industry

This study investigated the determinants of using operating lease in the hotel industry. The hotel industry has utilized operating lease not only for operating equipment but also as a financing instrument through ‘sales and lease back.’ This study found that hotel firms with less internal funds and/or with higher debt ratios are more likely to use operating lease. Contrary to the studies of other industries, hotel firms with less financially distressed are more likely to use operating lease. This study indicated that operating lease decrease as firm size increases, but only up to a certain level, after that level operating lease increase as firm size increases. Contrary to our expectations, the growth opportunity of hotel firms appeared to have no relationship to use of operating lease. These findings contribute to further understandings of hotel industry-specific information regarding what drives hotel firms to use operating lease.     

Innovation activity in the hotel industry: Evidence from Balearic Islands

The paper provides empirical evidence on technological activity in the Spanish service sector, in particular for the tourist accommodation in the Balearics. The study wants to fulfil the lack of analyses in the field of tourism. Commonly, the study of innovation activity has been carried out from a manufacture perspective, for that reason the paper discusses the precise definition of innovation in accommodation services. The data refer to a large representative sample of hotels in Balearic Islands (Spain), providing a homogeneous set of information. The results show as higher-categories hotels are more innovative than lower-categories hotels; an aggregated measure of technological innovation presents a rate over the average for hotels that belong to a chain, and that for hotels under management contract. Half of innovative companies adjust the human capital skills and abilities. The hotel industry is a supplier-driven sector that innovates introducing R&D embodied technology rather than undertaking internal R&D activities.     

The international hotel industry in Spain: Its hierarchical structure

This paper empirically analyzes the indebtedness of the main companies in the Spanish hotel industry. In particular, it introduces a method to analyze the structures and dynamics of the largest companies in this sector. The method combines the Pearson correlation coefficient with the nearest neighbour single linkage clustering algorithm (Mantegna, R. N. (1999). Hierarchical structure in financial markets. The European Physical Journal B, 11, 193–197). The Pearson correlation coefficient determines a metric distance between two different multidimensional time series that is then used to construct a Minimal Spanning Tree. From this tree, an ultra metric distance that is used to derive the Hierarchical Tree can be computed. From the analysis of the time series data of companies included in the SABI, or the Iberian Balance Sheet Analysis System 2005, it is possible to derive a hierarchical organization of the Spanish hotel firms. In particular, different dynamic clusters of companies, which correspond to their common production and indebtedness strategies, can be detected.     

Online upselling: Moving beyond offline upselling in the hotel industry

The purpose of this study is to understand how online upselling is used in the hotel industry as a part of revenue management strategy. This study used a convergent parallel mixed method design where qualitative and quantitative data were collected in parallel, analyzed separately, and then merged. Study 1 took a qualitative approach, exploring how online upselling programs can provide additional value over offline upselling and traditional revenue management practices. Study 2 adopted a quantitative approach to analyze customers’ bidding patterns for superior room categories through secondary data. Findings indicate that an omni-channel approach to upselling can tackle the fragmented nature of multichannel upselling communications to provide customers with consistent information and experience across these channels. Through an omni-channel approach, the hotel industry can develop personalized and streamlined upselling strategies.     

Accounting for customer satisfaction in measuring hotel efficiency: Evidence from the US hotel industry

Customer satisfaction, though an important output, is often ignored in hotel efficiency studies. Our study provides empirical evidence that excluding customer satisfaction may lead to significant difference in the mean and ranking of hotel efficiency scores. We derive our hotel efficiency scores using the distance stochastic frontier method based on a balanced sample of leading hotel chains in the US. We present and compare the efficiency results from two models, one that includes customer satisfaction and one that excludes customer satisfaction. The study discusses the difference in efficiency scores between the models. It also elaborates on the efficiency scores of some individual hotel chains and provides directions for future research.     

Barriers to EMS in the hotel industry

While some hotels have adopted the formal environmental management system (EMS) or the internationally recognised ISO 14001 Environmental Management Standard for the sake of the environment—or other claimed benefits—many hotels are still standing at the crossroads in adopting EMS. This exploratory study was conducted with the aim of investigating the barriers to EMS in the hotel industry in Hong Kong SAR. Of the 330 questionnaires mailed, 83 were returned. Using exploratory factor analysis to identify interpretable orthogonal factors, six factors that hinder hotels from adopting formal EMS were identified and interpreted. They are: (1) lack of knowledge and skills; (2) lack of professional advice; (3) uncertainty of outcome; (4) certifiers/verifiers; (5) lack of resources; and (6) implementation and maintenance costs. Independent samples t-test and ANOVA analysis were also conducted to gain a better understanding of the significant differences in the identified six factors on the barriers to adopting and implementing EMS in the hotel industry among different hotel demographic variables. Implications of the findings are discussed, while recommendations are made to reduce the barriers inhibiting the adoption of EMS in the hotel industry.     

The response of hotel performance to international tourism development and crisis events

This study uses panel regression tests to examine the response of hotel performance to international tourism development and crisis events in Taiwan. Hotel performance measures are revenue (revenue per available room and occupancy rate), profitability (return on assets and return on equity) and stock performance. The crises were the earthquake on September 21, 1999 (the 9/21 earthquake), the terrorist attacks of September 11, 2001 in the US (the 9/11 terrorist attacks) and the outbreak of Severe Acute Respiratory Syndrome on April 22, 2003 (the SARS outbreak). This study makes four major contributions. First, test results confirm that international tourism development (ITD), proxied by the growth of total inbound tourist arrivals, has a more direct influence on hotel sales and profitability than it does on hotel stock performance. Second, this study identifies that the absence of a strong tie between ITD and hotel stock returns that was found in previous studies is due to the time-varying discount rate caused by investors’ changing expectations for the prospect of future cash flows from holding hotel stocks. Third, this study finds new evidence that while the poor performance of hotel stocks caused by the 9/21 earthquake and the 9/11 terrorist attacks was attributed to the loss of hotel sales revenue, the adverse effect of the SARS outbreak on hotel stock returns is attributed not only to decreased hotel sales revenue but also to the increased discount rate. Lastly, this study is the first to investigate whether the response of hotel stock returns to ITD depends on the state of economy and concludes that the response of hotel stock performance to ITD in business cycle contraction is statistically different from that in business cycle expansion. Further, although the influence of ITD on hotel stock performance is still irrelevant during expansion periods, ITD can significantly enhance hotel stock returns during contraction periods.     

Measuring the experience of hospitality: Scale development and validation

This paper identifies what customers experience as hospitality and subsequently presents a novel and compact assessment scale for measuring customers’ experience of hospitality at any kind of service organization. The Experience of Hospitality Scale (EH-Scale) takes a broader perspective compared to existing scales, which predominantly measure hospitable behavior of service employees and are specifically developed for organizations in the hospitality industry. A thorough approach containing two qualitative and two quantitative studies resulted in the thirteen-item EH-Scale. The scale measures three experiential factors of hospitality: the experience of inviting (open, inviting, freedom), the experience of care (servitude, empathy and acknowledgement), and the experience of comfort (feeling at ease, relaxed and comfortable).     

Mergers and acquisitions in the hotel industry: A comprehensive review

This study aims to evaluate the current status of merger and acquisition (M&A) studies in the hotel industry and propose directions for future research. Forty-six articles were identified from ScienceDirect, Scopus, and EBSCOhost including 31 empirical and 15 conceptual articles. We review these articles from five perspectives, namely, journal/year distribution, methodology, research context, theoretical foundation and major topics. Findings reveal most studies on M&As in the hotel industry (hotel M&As) focus on performance, motivation and objectives. Developed economies (DEs) are the major research contexts and quantitative approach is the dominant research method. To this end, we propose seven research directions that cover outstanding themes as follows: 1) exploring M&A process, 2) M&A performance assessment, 3) identifying M&A impacts on stakeholders, 4) examining cross-border M&As, 5) examining emerging economies (EE)-based M&As, 6) investigating macro environment impacts, and 7) premium determinants and their impacts on hotel M&As.     

The signaling effect of management response in engaging customers: A study of the hotel industry

Hotels today actively respond to online reviews given their tremendous influence on travelers' decisions. Yet, the questions of how to respond to online reviews continue to baffle hotel managers. By focusing on prospective travelers, we propose the effective management response signals hotels' care for customers and quality of service. Particularly, we postulate the frequency, speed and length of response influence the effectiveness of signaling in reducing information asymmetry. Based on the large-scale field data from TripAdvisor, this study demonstrates that the frequency and speed of response significantly enhance travelers’ engagement as indicated by more reviews, higher average valence, more votes for helpfulness, and higher popularity ranking. Furthermore, the frequent and speedy response is more effective for budget (vs. premium) hotels. Thus, management response to online reviews serves as a critical channel of communication to engage customers.