Impact of Guest Reward Programs on the Firms' Performance

ABSTRACT

This study investigates the commonly important variables that characterizes the reward programs of airline and hotel firms and measures the impact of reward programs on the firms' overall performance. This study focuses on examining the reward programs of two service industries, namely, airlines and hotels. The findings of this study are as follows. First, ten significant variables of the reward programs that differentiate their own program from the other and ultimately make consumers choose a particular program among various programs are derived and evaluated. T-test is employed to examine significant differences between the two ROE means for each of the ten variables. The variables that were significant were elite level qualification, affinity credit card, and award threshold were significant at the 0.01, 0.05, and 0.10 level, respectively. Second, the impacts of those influential variables on the firms' performance are measured. The three variables, purchasing miles or point, enrollment bonus, and award threshold are statistically significant at the 0.05 level. Purchase miles or points and enrollment bonus contributed significantly to the firms' return on equity (ROE), while the award threshold seemingly reduced the firms' earned ROE. Both the airline and hotel firms should be sensitive when establishing reasonable and attainable threshold levels for their customers. Customers generally turn away from high barriers and are more likely to select a program with less restrictions and conditions.     

The impact of the antecedents of relationship development on Thai and Australian resort hotels guests

This study examines the differences in the antecedents of relationship development between Thai and Australian resort guests in Thailand. A modified form of the key mediating variable (KMV) model is used to frame the study. The study found that relationship quality (characterised by trust and commitment) has a strong positive impact on Australian and Thai guests’ loyalty and that both groups rely on similar factors when evaluating their long term loyalty intentions. However, cross cultural variation in the weights attached to each of these factors was evident. Australians value special treatment and social benefits, while Thais place more emphasis on communications and opportunistic behaviour. These theoretical insights can assist resort operators to manage guest relationships and to develop service standards that address the guests’ cultural needs.     

Examining the Differential Impact of Human Crowding Versus Spatial Crowding on Visitor Satisfaction at a Festival

Human crowding at a festival can affect visitor satisfaction differently to spatial crowding. Festival visitors perceive human crowding as a situation in which the festival is full of people. Spatial crowding, on the other hand, is perceived as restricting movement. We hypothesized that human crowding affects visitor satisfaction in a positive way (by increasing positive affect and decreasing negative affect), whereas spatial crowding affects visitor satisfaction in a negative way (by decreasing positive affect and increasing negative affect). We tested these hypotheses using data collected through an on-site survey at the 2012 Seoul Lantern Festival in South Korea: 423 visitors attending the festival completed the survey. The survey results supported the hypotheses. Managerial implications of the findings are also discussed.     

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 impact of economic,social and environmental factors on trip satisfaction and the likelihood of visitors returning

Tourism is vital to the economy of many regions; however visitor numbers in some are stagnating. Using a novel approach, this case study of the Great Barrier Reef explores and quantifies risks to visitor numbers, utilising tourist survey data supplemented by objective data from secondary sources. Economic, social and environmental factors affecting trip satisfaction are identified, which itself is found to affect the likelihood of a tourist returning; the impact of changes on trip satisfaction and on repeat visits is then estimated. Linkages between tourism and other industries are clearly demonstrated; increased construction work, decreased water clarity and decreased perceptions of tourist safety are all estimated to significantly reduce likelihood of repeat visits and hence impact tourist revenues, placing the financial viability of the industry at risk. Future development within the region should be evaluated holistically, rather than industries such as tourism, construction, agriculture etc. each being developed in isolation.     

新冠肺炎疫情对中国旅游业的影响及其应对探讨

新冠肺炎疫情给全球旅游业带来了巨大的冲击和挑战,深入探讨疫情对旅游业的影响及应对成为各界关注的重点。本文从居民出游意愿、场所空间容量、市场经营主体、旅游政策等供需关系方面分析了新冠肺炎疫情对中国旅游业的影响。研究表明：（1）疫情对居民出游消费信心、意愿和能力造成较大影响,但潜在出游需求仍然存在。（2）疫情对旅游地空间环境造成较大物理和心理压缩,与旅游关联紧密的文化产业、娱乐业的生产空间容量也受到了间接影响。（3）疫情对旅游产业链、旅游市场主体经营等方面造成了全面且深远的影响。（4）疫情防控常态化下旅游政策供给以“流动管制”和“行业纾困”并重为主。面对疫情的持续影响,建议着重从组织响应、空间响应和企业韧性3个方面进一步强化旅游业应对能力,即：完善业外支撑、业内驱动、业界保障的三位一体组织响应体系;构建旅游目的地（点）-连结（线）-网络结构（网络）的三级协同空间响应机制;从企业组织、产品服务、管理和营销、市场品牌、员工心理等5个方面加强旅游企业韧性建设,以增强中国旅游业恢复发展能力。     

The impact of e-word-of-mouth on the online popularity of restaurants: A comparison of consumer reviews and editor reviews

With the growing availability and popularity of web-based opinion platforms, online product reviews are now an emerging market phenomenon that is playing an increasingly important role in consumer purchase decisions. Generally speaking, there are two types of online reviews: consumer-generated reviews that are based on personal experiences, and reviews that are written by professional editors. However, little prior research efforts have been devoted to evaluate whether these two types of reviews have different influences on the behavior of online users. This study shows that consumer-generated ratings about the quality of food, environment and service of restaurants, and the volume of online consumer reviews are positively associated with the online popularity of restaurants; whereas editor reviews have a negative relationship with consumers’ intention to visit a restaurant's webpage. The findings will help hospitality researchers and practitioners better understand the impact of electronic word-of-mouth on purchase decisions.     

Examining the impact of psychological capital on workplace outcomes of ethnic minority foodservice employees

The purpose of this study was to examine the impacts of psychological capital on workplace outcomes of ethnic minority employees in the foodservice industry. Guided by the social exchange theory and the equity theory, this study developed and tested a survey instrument and collected 407 valid responses through an online survey. Results of the structural equation model analysis confirmed the positive impact of psychological capital on work engagement and workplace happiness, and their further impacts on job satisfaction and commitment. The results of multi-group comparisons showed differences between salaried and hourly employees. For individuals holding salaried positions, it was work engagement, rather than psychological capital, that affected their workplace happiness. For hourly employees, although psychological capital influenced their work engagement and workplace happiness, their work engagement and work happiness remain unrelated. Based on the findings, this study offered practical implications on how to enhance psychological capital for ethnic minority employees.     

Examining the impact of artificial intelligence on hotel employees through job insecurity perspectives

Artificial intelligence is another advance in technology for the hotel industry and its role is undetermined at this time. The overarching purpose of this treatise was to examine hotel employees’ perception of AI and its impact by identifying the critical role of job insecurity, job engagement, and turnover intention through a pragmatic approach. An explanatory sequential mixed-methods design was used by conducting a quantitative study with an empirical survey method followed by a qualitative study with a case study method. The results from the quantitative study demonstrated that perceived job insecurity significantly affected perceived job engagement and perceived job insecurity indirectly affected turnover intention through intermediary variable of perceived job engagement. There were no statistical differences between non-managerial positions and managerial positions. These results were fully supported by the qualitative study. The implications from these findings were provided to articulate the influence of AI on hotel employees.     

Customer attributions of service failure and its impact on commitment in the airline industry: an emerging market perspective

The purpose of this study was to establish the impact of customer service failure attributions on customer commitment and the influence of service failure severity on recovery satisfaction. Data were collected through structured questionnaires and the hypotheses were tested using Structural Equation Modelling (SEM). The study revealed that service failure severity and attribution dimensions of stability and controllability influence recovery satisfaction. No relationship was established between locus of causality and recovery satisfaction. It was revealed that recovery satisfaction influences customer commitment and knowledge of alternatives moderates the relationship between the two. Service providers are recommedend to avoid preventable service failures.     

The impact of advertising on patrons’ emotional responses,perceived value,and behavioral intentions in the chain restaurant industry: The moderating role of advertising-induced arousal

The purpose of this study was twofold: to investigate the structural relationships between patrons’ emotional responses induced by advertising, their perceived value, and their behavioral intentions in the chain restaurant industry; and to investigate which attributes of advertising bear the strongest impact on behavioral intentions. Based on the literature review, six evaluative dimensions of advertising were derived: relevant news, brand reinforcement, stimulation, empathy, familiarity, and confusion. Theoretical relationships between these six evaluative dimensions and patrons’ emotional responses, perceived value, and behavioral intentions were derived based on the literature review. Following the collection and analysis of data obtained from chain restaurant patrons, it was found that four dimensions of advertising in particular (relevant news, stimulation, empathy, and familiarity) have a significant impact on inducing emotional responses in patrons. Among the four dimensions, stimulation was found to bear the most significant effect on patrons’ emotional responses. It can thus be stated that advertising-induced emotional responses positively influence patrons’ perceived value. During this study, it was found that the level of arousal induced by advertising plays a moderating function in the relationship between patrons’ emotional responses and hedonic value. The possible interpretations of these findings and their managerial implications are discussed in the latter part of this article.