Understanding the impact of changes in consumer confidence on hotel stock performance in Taiwan

This study contributes to the hospitality literature by providing a comprehensive investigation of the effects of changes in consumer confidence (ΔCCI) in Taiwan on hotel stock performance, including hotel sales growth (ΔSALES), hotel stock returns (HSR) and the perceived riskiness of stock cash flows from holding hotel stocks (proxied by the risk of hotel stock returns (RISK)). Empirical test results reveal that ΔCCI can significantly benefit HSR by stimulating hotel sales growth and by lowering the perceived riskiness of hotel stock cash flows. Quantile regression tests demonstrate that among six economic variables, only ΔCCI can consistently and significantly affect HSR, ΔSALES and RISK at all different quantiles. Changes in consumer confidence are also found to be significant in helping the prediction of HSR, ΔSALES and RISK. Specifically, an increase in ΔCCI can cause an increase in HSR and ΔSALES and a decrease in RISK.     

The profitability impact of REIT requirements: A comparative analysis of hotel REITS and hotel C-Corporations

Under the influence of regulatory requirements, REITs have evolved into entities that have distinct financial and organizational characteristics from their C-Corporation counterparts. This study aims to investigate whether hotel REITs are more profitable than hotel C-Corps and how REIT regulations contribute to this difference. The results indicate that despite the differences in tax obligation, operating expense, and dividend policy, hotel REITs and hotel C-Corporations are not significantly different in profitability. However, the analysis suggests that hotel C-Corps have advantage over hotel REITs in improving profitability through dividend payout increases. The findings also suggest a possible non-linear relationship between profitability and dividend payout, presenting an opportunity to extend Jensen's (1986) agency cost theory.     

The impact of hotel CSR for strategic philanthropy on booking behavior and hotel performance during the COVID-19 pandemic

During the novel coronavirus (COVID-19) pandemic, some hotels have engaged in corporate social responsibility (CSR) activities to help overcome the crisis. Given that most existing research examines the impact of hotel CSR on a single stakeholder, how hotel CSR activities in a crisis are perceived by multiple stakeholders is unknown. Drawing on the concept of strategic philanthropy, this study examines the impact of hotel CSR activities during the pandemic, such as providing accommodations to healthcare workers, on hotel firms' market value and prospective hotel customers’ booking behavior. Adopting mixed-methods approach, this study finds negative impacts of hotel CSR for strategic philanthropy on firm market value and customer booking behavior. The study result indicates that the value of hotel CSR depends on the nature and environmental contexts of CSR. Specific theoretical and practical implications are provided.     

The impact of industry force factors on resource competitive strategies and hotel performance

This study integrates the Porter's five forces and resource-based approach measuring U.S. hotel performance. The results show that hotels with the advantage of low customer bargaining power and low threat of new hotel entrants exhibit the strong human resource and information technology (IT) strategies. In contrast, hotels with the advantage over existing competitors do not exhibit any significant competitiveness of brand image, human resource, and IT strategies. This dues to different hotels define competitors with various criteria such as proximity and price. Competitive human resource and IT strategies indicate the increase of hotel performance, while competitive brand image strategy has no influence on hotel performance. The competitiveness of brand image strategy may overlap with implementing human resource and IT strategies.     

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.     

The effects of Airbnb on hotel performance: Evidence from cities beyond the United States

Although Airbnb's impact on hotels has been quantified for major hotel markets in the United States, these effects have not been quantified in international hotel markets. Accordingly, the purpose of this study is to examine the effects of Airbnb listings on key hotel performance metrics in an international context. In particular, we examine the effects of Airbnb listings on hotel revenue per available room (RevPAR), average daily rate (ADR), and occupancy rate (OCC) in major international hotel markets, namely London, Paris, Sydney and Tokyo. The results show that Airbnb listings in these major cities have been increasing more than 100% year over year and that the effect of Airbnb on hotel RevPAR and OCC is negative and statistically significant. In particular, a 1% increase in Airbnb listings decreases hotel RevPAR by between 0.016% and 0.031% in these hotel markets. The implications of these findings for destinations and hoteliers are discussed.     

The effects of SARS on the Korean hotel industry and measures to overcome the crisis: A case study of six Korean five-star hotels

The major objectives of this study were: (1) to discuss the impact of the SARS outbreak on the Korean hotel industry; (2) to explore how the crisis management contingency concept was implemented by the Korean hotel industry during this crisis; (3) to examine what the implications are for managers in the hotel industry. Results of this study indicate that the SARS outbreak had an adverse impact on the Korean hotel industry. During the six months affected by the SARS outbreak, the Korean hotel industry tried to minimize operating costs and offered employees education programs concerning health awareness, training and operating new hygiene equipment. This study is expected to provide lessons from the experience of the Korean hotel industry during the SARS-affected period.     

Investigating the whole picture: Comparing the effects of Airbnb supply and hotel supply on hotel performance across the United States

This study examines and compares the extent to which Airbnb and hotel supply affect key hotel performance measures in the United States. The results show that although both Airbnb and hotel supply adversely affect hotel revenues (i.e., RevPAR), the magnitude of the impact of hotel supply on RevPAR is much larger than that of Airbnb. Airbnb adversely affects hotel room prices (i.e., ADR), however; it does not affect occupancy rates (i.e., OCC). Yet, increasing hotel supply negatively affects OCC but not ADR. The results from the state-level analyses further showed that the negative effects of Airbnb and hotel supply on RevPAR, ADR and OCC persist only in states with high hotel supply. Analyzing the joint effects of Airbnb and hotel supply on hotel performance in a manner that is both geographically-comprehensive and spatially-meaningful, this study provides a more complete and nuanced understanding on the economic dynamics of the accommodation industry.     

The effect of hotel chain affiliation on economic performance: The moderating role of tourist districts

This paper offers a pioneering analysis of the impact that integration in different types of hotel chains has on firm performance, and the moderating effect of the tourist destination in this relationship. Studies in the literature examine both size and location independently, without reconciling the apparently contradictory trends of globalization and conservation of the local base. The aim of the research is to analyze the comparative effects on tourism firms’ performance of belonging to different types of hotel chains while maintaining the advantages of location in a tourist destination. Based on a study of 292 Spanish hotels, the authors test the proposed hypotheses using hierarchical regression analysis. The results show the advantages of non-equity chains over independent establishments. The study also finds a positive moderating effect of location in a district on the results yielded by belonging to a chain, whatever organizational form it takes.     

Hotel roomrates under the influence of a large event: The Oktoberfest in Munich 2012

Surprisingly few studies deal with the implications of large events for hotel prices. We address this issue by modeling hotel prices in Munich under the influence of the Oktoberfest. By utilizing internet data from a metasearch provider for check-in dates prior to and during the Oktoberfest 2012, it is analyzed how the event affected the daily price level as well as price differentials between hotels. In general, average hotel prices are very volatile over time. Apparently, Munich hotels tend to set prices according to expected demand and vary those depending on the day of the week during the event. Ceteris paribus, roomrates are highest on Oktoberfest Friday and Saturday nights, followed by Oktoberfest weekdays and Oktoberfest Sunday nights, but there is a general and strong price-raising impact. Prices differ across hotels mainly due to the star category attributed to a hotel and the proximity to the event. Both price premia are time-dependent.     

The effects of SARS on the Hong Kong tourism industry: An empirical evaluation

The objective of this study is to assess the temporal impact of SARS on the tourists' arrival in Hong Kong. An econometric strategy was carefully selected to determine the existence of unit roots in data series containing the number of tourist arrivals from 36 source countries between 1978 and 2001. The existence of unit roots can detect the stationary properties of the series. The analysis finds that data series of 24 countries contain unit roots and hence any form of exogenous shocks, like the SARS epidemic, can have permanent impact on the number of tourist arrivals. Included in this category are Japan, Taiwan, the US and the UK, which are the main source of tourists for Hong Kong. The paper recommends that authorities take source-country-specific measures to manage the negative effect of SARS.     

The other side of technology adoption: Examining the relationships between e-commerce expenses and hotel performance

As information technology (IT) increasingly permeates all aspects of the contemporary society, hotels have spent millions of dollars to deploy electronic commerce (e-commerce) tools and develop appropriate strategies to attract and retain guests. Yet, while the literature reflects the drivers of adopting certain e-commerce tools, it does not provide a conclusive answer regarding the effectiveness of e-commerce expenditures. Specifically, it is unclear whether such expenditures affect performance in terms of revenue and gross operating profit, or whether such effects are consistent over time and across different chain scales. Based on financial data reported by a sample of 275 hotels from 2007 through 2012, this study found that e-commerce expenses significantly and positively impacted rooms revenue for all sample years, except in 2007. When subgroup analyses were performed by chain scale, it was found that e-commerce expenses significantly contributed to the gross operating profit for midscale and upscale hotels but not for the luxury, upper upscale, and the upper midscale categories.     

Levels of quality and environmental management in the hotel industry: Their joint influence on firm performance

Many studies have examined quality management and environmental management separately. This paper analysed the commitment to quality and environmental management at the same time, and their separate and joint effects on hotel performance. The empirical data were collected from a sample of 301 3-to-5-star Spanish hotels. A cluster analysis was carried out to identify the levels of commitment to quality and the environment. Then, ANOVA and regression analysis tested the quality and environmental commitment levels-performance link. Three levels of quality and environmental commitment have been identified. The findings showed that the commitment to quality and environmental practices influences hotel performance.     

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 impact of the challenge and hindrance stress on hotel employees interpersonal citizenship behaviors: Psychological capital as a moderator

This study investigates the relationships between challenge and hindrance stressors and hotel employees’ interpersonal citizenship behaviors (ICB). The study also tests the moderating role of hotel employees’ psychological capital (PsyCap) on the aforementioned relationships. Data were collected from 213 U.S. hotel frontline employees. The results showed that both challenge and hindrance stress had a negative relationship with ICB. PsyCap was found to moderate both relationships. Implications for hospitality researchers and industry practitioners are discussed along with the limitations and suggested avenues for future research.     

The impact of IT news on hospitality firm value using cumulative abnormal returns (CARs)

The impact of information technology (IT) news on firm value have been investigated and discussed in various industry settings. Some reports indicate positive impacts while others find negative or no significant impact at all. The purpose of this event study is to examine how financial markets perceive various types of IT news regarding hospitality companies. Nine categories of IT news are created for investigation and the study estimates cumulative abnormal returns (CARs) to determine the impacts of such news on stock price movements. The findings suggest no significant impact from IT news on firm value, supporting the IT paradox theory.     

The influence of the cultural dimension of uncertainty avoidance on business strategy development: A cross-national study of hotel managers

The purpose of this exploratory study was to empirically investigate the potential influence of uncertainty avoidance (UA) on hotel top managers’ approach to strategy development. Scales were developed to measure managers’ openness to strategic change, involvement of others, formality of strategic control, type of data used in strategic analysis, and strategic planning time horizon. Responses from 207 managers (50 Americans, 43 Malaysians, 70 Thai, and 44 Turkish) were analyzed using ANOVA. The findings indicated that UA had minimal influences on the managers’ approach, as different managers from cultures with varied degrees of UA demonstrated noticeable similarities among the five variables investigated. Practical implications as well as suggestions for future research were provided.     

Influence of environmental stimuli on hotel customer emotional loyalty response: Testing the moderating effect of the big five personality factors

The aim of this research was to test the moderation effects of the Big Five Factors (BFF) of personality on hotel ambience-guests’ consumption emotions–loyalty relationship. This was an attempt to extend the Stimuli–Organism–Response (S–O–R) that has been widely used in consumer studies without integrating personality factors that may exert effects on the relationships. A self-administered questionnaire was distributed to hotel guests; 563 responses were used in data analysis. The results of the structural model affirm the effect of hotel ambience on guests’ consumption emotions, with those emotions having significant effects on loyalty. Among the personality factors, extraversion, openness to experience and agreeableness significantly moderated the relationships, with groups scoring high in traits having stronger relationships than those lower in traits. Overall, the study supports the extension of the S-O-R with the inclusion of personality. Theoretical and practical implications are discussed.     

The effect of hotel lobby design on booking intentions: An intergenerational examination

This paper aims to understand what elements of the hotel lobby design influence guest booking intentions. Lobbies are the first point of face-to-face communication between guests and staff upon arrival, impacting the initial guest perception of the property as well as playing an essential role in creating first impressions. Building on the Stimulus-Organism-Response framework, the study investigates preferences of millennial and non-millennial travelers towards hotel lobby design concerning style (contemporary vs. traditional) and biophilic elements (present vs. absent). This quantitative study is designed as an online, virtual, scenario-based experiment. The hypotheses were tested using MANOVA, ANOVA, and linear regression. The findings of the study reveal that the lobby interior design style has a significant impact on booking intention across different generations. Moreover, millennials are more impacted by the design style of the hotel lobby than non-millennials. Biophilic design has also been found to impact the satisfaction and emotions of guests across different generations.