Decline and turnaround: a literature review and proposed research agenda for the hotel sector

Tourism systems are composed of an inter-related and inter-dependent set of individual businesses, organisations and servicescapes. The hospitality industry, and more specifically the hotel sector, comprises many businesses that contribute significantly to the tourism system. Yet, the industry is renowned for business failures and poor financial returns. Increasing competition, globalisation, technology, social change and internal weaknesses are some of the reasons why tourism and hospitality businesses fail or perform significantly below expectations. When in a state of decline or poor performance, many businesses attempt a ‘turnaround’. Declining performance can have wide-ranging impacts not only on hotel businesses directly, but also upon those communities where local economies rely on tourism for jobs and economic prosperity. Consequently, an improved understanding of the processes of declining performance and turnarounds is particularly important to both researchers and practitioners. However, there has been limited research focused on turnarounds in the tourism industry, in general, and in the hotel industry, in particular. In this study we assess the literature on decline and turnarounds and propose an agenda for future research that will enhance our knowledge and inform ongoing debate on the process and impact of turnarounds in the hotel industry.     

Selecting a hotel and determining salient quality attributes: a preliminary study of mature british travellers

The paper presents the findings of a survey of 104 mature British travellers, who rated the importance of 38 hotel attributes when selecting a hotel or judging its quality, through a self‐administered questionnaire distributed at local branch meetings of societies for mature people. Respondents had high expectations of hotel service quality. They were a discerning group, placing greater emphasis on value for money than on actual price or discounting alone. The findings highlighted the importance placed on service staff attitude and behaviour. Leisure facilities were found to be relatively unimportant, but certain mature‐specific attributes pertaining to mobility limitations were found to be salient to an important proportion of respondents. Significant differences were identified according to gender, age and retirement status, indicating that the mature market is heterogeneous. Copyright © 2000 John Wiley & Sons, Ltd.     

Multivariate models of hotel occupancy performance and their implications for hotel marketing

Multivariate models are developed to explain the differential occupancy performance of a sample of 279 English hotels. Following a procedure established in an earlier paper, hotels are first differentiated on the basis of their overall occupancy performance, seasonality, long‐term trend and length of season. Regression models are specified and calibrated to relate each of these dimensions of occupancy performance to the location and other characteristics of the hotels. The four models produce the expected positions of hotels in ‘occupancy performance space’, against which their observed positions can be compared. The application of the models in hotel marketing is discussed and demonstrated. Copyright © 2001 John Wiley & Sons, Ltd.     

Evaluating the efficiency of a small hotel chain with a Malmquist productivity index

By applying data envelopment analysis (DEA) a two‐stage procedure is followed to evaluate the determinants of efficiency of a Portuguese public‐owned hotel chain, Enatur for the period 1999 to 2001. In the first stage the paper estimates the Malmquist index and breaks it down into technical efficiency and technological change. In the second stage, a Tobit econometric model, designed to relate efficiency scores, along with other managerial and contextual variables, is used to identify the efficiency drivers. The implications of this study for managerial purposes are then discussed. Copyright © 2005 John Wiley & Sons, Ltd.     

The development of environmental initiatives in tourism: responses from the London hotel sector

In tourism, natural resources and the physical environment are regarded as important assets to enhance the product. Practitioners in this multisectoral industry (including hotels) perceive the environment and its resources to be a crucial feature in attracting more tourists. Today, most sectors of industry face pressure to improve their environmental performance. Hotels as a component of tourism are no exception. Hotels can act to reduce their environmental impacts and, collectively, make a substantial contribution to improving the quality of the environment. A wide range of publications offer guidance and advice on the actions hoteliers may take to alter their practices and thus address environmental issues. Yet, to date, it is not clear how many hotels are applying these recommendations, nor which actions share this common goal. Equally, the lack of operationalisation in environmental principles, implicit within many codes of practice, is seeing the emergence of a gap between theory and practice in these matters. It is the nature of this gap that is explored. Additionally, an assessment is undertaken of what the tourism industry is doing to improve environmental performance, and a case study is presented based on a detailed survey of environmental management practices in 42 London hotels. Copyright © 1999 John Wiley & Sons, Ltd.     

The performance of the Slovenian hotel industry: evaluation post‐privatisation

This study analyses the technical efficiency of Slovenian hotels using the data envelopment analysis method. Multiple inputs and outputs are included in the analysis, ranging over the period 2005–2007. The results reveal an increase in efficiency over the period analysed. The results also confirm that factors such as the hotel's year in business, star rating and size are positively related to efficiency variations between hotels. Copyright © 2010 John Wiley & Sons, Ltd.     

Job Embeddedness as a Moderator of the Impact of Organisational Justice on Turnover Intentions: a Study in Iran

The purpose of this study was to examine job embeddedness as a moderator of the effects of distributive, procedural and interactional justice on turnover intentions. This study also investigated the relationship between the aforementioned justice dimensions and turnover intentions. Data were gathered from a sample of full‐time frontline hotel employees with a time lag of 2 weeks in Iran. The results demonstrated that the negative effects of distributive, procedural and interactional justice on turnover intentions were stronger among frontline employees with high levels of job embeddedness. The results further revealed that these justice dimensions had negative relationships with turnover intentions. Copyright © 2012 John Wiley & Sons, Ltd.     

Perception and attitude of Hong Kong hotel guest‐contact employees towards tourists from Mainland China

In recent years, the majority of arrivals to Hong Kong, which were once dominated by the Western and Japanese markets, were replaced by arrivals from Mainland China. The number of tourists from Mainland China has overtaken others to become the largest single market for the territory. With its increasing significance, providing quality service to these visitors becomes crucial to the success of the tourism industry and of the hotel industry in particular. Unfortunately, the satisfaction rating of the Mainland visitors on hotel services in Hong Kong is reported to be relatively low when compared to those given by other major markets. It is suspected that the perception and attitudes of the service staff may influence their behaviour in serving customers. As such, this study conducted a survey questionnaire with 228 guest‐contact employees of hotels in Hong Kong. Results indicate that most respondents have a fairly positive perception towards the Mainland tourists in relation to the economic and financial benefits that they bring to Hong Kong. However, a majority of the respondents express negative perception and attitudes towards these tourists in respect to their appearance, personalities and behaviour. Despite some respondents indicating that they exhibit different service behaviour towards visitors from Mainland China and other countries, no major significant differences in their perception and attitudes were found in this study. It is recommended that various types of cross‐cultural training, such as sensitivity training and role playing, would be helpful to guest‐contact employees in enhancing their ability to be more objective and more tolerant of other people's behaviour. This study concludes that hotel employees, especially those who work as front‐line staff, must remain aware of their subjective judgments when dealing with guests and be more accepting of others. Copyright © 2007 John Wiley & Sons, Ltd.     

Co-creation with clients of hotel services: the moderating role of top management support

Hotels can strengthen their competitiveness by expanding their innovation process beyond the boundaries of the firm to exploit the valuable knowledge and skills of their customers. This study examines the effects of new service (NS) co-creation with customers in the hotel industry on NS performance, as well as the moderating role of top management support. The research also explores the main barriers faced by hotels to co-create service innovations. Partial least squares structural equation modelling results indicate that Customer co-creation exerts a direct impact on NS market outcomes and NS development (NSD) speed, which in turn favours NS quality. NS quality translates into better NS customer-related outcomes as well as in improved NS market outcomes. Top management support enhances the effect of Customer co-creation on the NSD speed. The main barrier to NS co-creation in hotels is to find customers interested in devoting time to this activity or with the appropriate knowledge and experience.     

Role stress,burnout and their effects on frontline hotel employees' job performance: evidence from Northern Cyprus

Based on data obtained from frontline hotel employees in Northern Cyprus, this study investigated the effects of role stress and burnout on job performance. It was found that role ambiguity decreased job performance while role conflict enhanced job performance. The results indicated that diminished personal accomplishment exerted a significant negative influence on job performance whereas the rest of the burnout dimensions did not. The results further showed that both role conflict and ambiguity exacerbated emotional exhaustion and depersonalisation. Role ambiguity was found to have a significant positive relationship with diminished personal accomplishment whereas role conflict was not. Copyright © 2007 John Wiley & Sons, Ltd.     

Towards an accessible hotel: a case study of Scandic

This paper focuses on the issue of hotel accessibility and offers a case study of Scandic. Drawing on a qualitative-cum-quantitative methodology, it argues for a holistic approach to the idea of an accessible hotel. Specifically, it is based on semi-structured interviews and a questionnaire survey conducted among elderly and disabled guests. Accordingly, it underscores not only the importance of a corporate social responsibility (CSR)-centred organizational culture and employee extra-role behaviours, but also of customer satisfaction, loyalty and trust. This paper proposes an original and evidence-based conceptualization of hotel accessibility and offers several practical recommendations intending to turn hotels into truly accessible facilities.     

Post-2010 FIFA Soccer World Cup: oversupply and location of luxury hotel rooms in Cape Town

An excess of hotel rooms in cities preparing to host a mega-event such as the FIFA Soccer World Cup is not a new occurrence. Between 2007 and 2010 the number of five-star hotel rooms in Cape Town increased by 50% and four-star hotel rooms by 20%. A spatial database of three-, four- and five-star hotels was compiled for the hotel sector of Cape Town. This paper reveals the global–local nexus of luxury hotel development in Cape Town (South Africa) and three different contexts in which the oversupply of hotel rooms must be understood. First is South Africa as a developing country engaged in hosting a hallmark event and engrossed in concomitant inflated tourism-related expectations. Second is the vulnerability of Cape Town's hotel sector with its overdependence on long-haul holiday tourists from a narrow northern-hemisphere market experiencing the worst economic recession since the 1930s. Third is the favourable economic trends in South Africa from 1999 to 2007 that have trapped hotel developers in a ‘fallacy of composition’.     

Multinational hotel development in developing countries: an exploratory analysis of critical policy issues

Multinational hotel companies, often integrated with tour operators, travel agencies and other businesses in tourist‐generating or tourist‐receiving countries, play a key role in the development and continuity of an international tourism industry in developing countries. In order to take advantage of benefits and minimise the unwanted adverse effects from multinational hotel involvement, developing countries need the planning, implementation and evaluation of carefully designed policies linked to their particular objectives. This paper reviews the potential benefits and costs of multinational hotel companies and brings together previously scattered critical policy issues in relation to them, while suggesting possible options for developing countries to follow. Seven critical policy areas are identified: establishment of the need for foreign investment; deciding on forms of involvement; deciding on the scale of hotel development; supporting sectoral linkages; supporting indigenous employment/training; monitoring business practices; and determining foreign investment incentives and regulations. It is argued that policies should be worked out in these areas and co‐ordinated in order to achieve a balance between the benefits and costs of multinational hotel involvement in developing countries. Copyright © 2001 John Wiley & Sons, Ltd.     

Marketing performance measurement in hotels,travel agencies and tour operators: a study of current practices

As successful tourism firms invest heavily in marketing to defend or improve their competitive position, they increasingly need to measure their marketing performance. Previous studies related to tourism have largely focused on financial and operational performance, but the marketing perspective has been largely overlooked. Drawing on an in-depth investigation involving 12 hotel chains, 8 travel agencies and 8 tour operators, this study provides an overview of the state-of-the-art marketing performance measurements among some of the leading tourism firms in Italy. Several issues and unanswered questions are also identified.     

The impacts of perceived organizational prestige and organization identification on turnover intention: the mediating effect of psychological empowerment

This study examined the attitudes of workers employed at hotels in Turkey. An integrated model was developed to highlight the relationship between organizational prestige and organizational identification with turnover intention as mediated through psychological empowerment. Using a sample of 332 employees, structural equation modelling was conducted to establish this relationship by analysing the responses of employees of hotels in Turkey. The findings of the study reveal a strong relationship between organizational identification/organizational prestige and hotel employees’ turnover intention. The study discusses the implications of the presented findings and suggests potential practical applications.     

Tourism and electricity consumption in 9 European countries: a decomposition analysis approach

ABSTRACT

Tourism is a major economic activity constituting one of the main sectors in economic terms. European countries traditionally play a significant role in the overall international tourism flow. However, while tourism has a noticeable positive impact on economic development, it also contributes to environmental degradation by increasing energy consumption and therefore emissions. This paper analyses the relationships between Hotel and Restaurant electricity consumption and tourism growth in 9 European countries during 2004–2012, for which there is a sufficient amount of data available. A decomposition analysis based on log-mean Divisia index method (LMDI I) is conducted to examine electricity consumption on this sector and their components. Five decomposition factors are considered: energy intensity (EI), physical capital intensity (KI), physical and human capital relationship (KL), human capital intensity (LI) and the tourism factor (T). Results show the evolution of energy consumption related to this sector, identifying the driving forces that have influenced it.     

Business travellers' perception of service quality: a prefatory study of two European city centre hotels

The business traveller contributes significantly to the turnover of the hotel industry and, with the globalisation of business, this sector shows signs of increasing growth. Service quality has now become one of the main factors used to gain competitive advantage, thus the industry must focus more specifically on the needs and expectations of its business customers. The aim of this paper is to focus on the business travel market and more specifically on the comparison of two hotels in two European cities, Brussels and Manchester. This area of research has not been attempted before and will provide an interesting comparison with findings in USA. A literature review identified the relevant attributes used to measure service quality, which were utilised to design a questionnaire, distributed to customers in a five star hotel in Manchester and in Brussels. The primary data obtained were then compared with the findings of other researchers. The analysis indicated that Brussels scored the majority of the attributes more highly (many significantly) than did Manchester. This may be influenced by the international profile of the Brussels respondents who tended to travel on business more frequently than the Manchester sample. The comparisons with the USA surveys found some inconsistencies that might be attributed to societal differences.Copyright © 2001 John Wiley & Sons, Ltd.