Hotel operator motives in UK sale and leaseback/management-back transactions

Sale and leaseback has become a major financing method in the hotel industry in the UK over the last 10 years, followed more recently by sale and management-back. This article, using interviews with current practitioners, examines the motivations of owner/operators in adopting these methods, identifying differences from generic motives in previous literature relating to the subject. It finds that, because of the integral part that hotel properties play in the delivery of customer service there are differences of opinion on the benefits of such an approach and there is a need to adopt some different considerations in the decision to use this method of funding.     

Does Airbnb have a homogenous impact? Examining Airbnb’s effect on hotels with different organizational structures

Although a number of studies have examined Airbnb’s impact on hotels, previous studies have yielded mixed results and are limited in their geographical scope. Additionally, the impact of Airbnb on hotels with different organizational structures has not been previously analyzed. Accordingly, the purpose of this study is threefold: 1) to add to our understanding of the impact of an increase of Airbnb inventory by clarifying previously inconclusive results; 2) to examine the extent to which Airbnb listings affect hotel performance measures in the overall U.S. hotel market; and 3) to investigate the influence of Airbnb on key hotel metrics by elaborating the effect of Airbnb on hotels operated under different organizational forms- chain-managed, franchised, and independent. Our results show an adverse impact of Airbnb on hotel RevPAR and ADR metrics across different organizational structures. However, interestingly, Airbnb listings did not negatively affect occupancy numbers. Theoretical and practical implications are discussed.     

Managing human capital in a privately owned public hotel chain

This study analyses human capital (HC) management practices in a small privately owned public hotel group, in the context of intellectual capital. Previous studies have highlighted how firms measure and report HC; however, few studies have examined the HC management practices of firms. This study analyses these practices using multiple data methods—namely, observation, interaction with staff, examination of internal financial and management reports, and semi-structured case study interviews—on a continuous basis over a 1-year period. The results of this study indicate that, through HC management practices, this group of hotels engaged in value extraction rather than value creation as a way of maximizing the value of the firm. The study identifies several possible reasons for this and presents a number of ways of encouraging value creation.     

A survey of factors influencing the cost system design in hotels

This study examines the relationship between cost system functionality and contingent factors in the hospitality industry. An empirical survey via questionnaires was conducted on a sample of 100 leading hotels enterprises in Greece. Data analysis showed that the majority of hotels’ cost systems do not provide qualitative cost data. Results indicate that the level of cost system functionality is significant positively associated with the low cost strategy and the extent of the use of cost data (USD). No association was found between cost system design and size, level of competition, number of services variants and hotels’ management status.     

Relationship or revenue: Potential management conflicts between customer relationship management and hotel revenue management

The concepts of customer relationship management (CRM) and revenue management (RevM) have been embraced by managers in the hospitality industry although, in practice, companies may find it difficult to accommodate both fully. This paper examines the compatibility between the two practices and discusses the possible management conflicts that occur from both account managers’ and revenue managers’ viewpoints. Findings gathered from an international hotel company reveal several causes of potential management conflicts including: management goals, management timescales, perceived business assets, performance indicators and management foci between CRM and RevM due to divergence occurring in managers’ priorities and in their approaches to achieving their individual set goals. These differences have rarely been comprehensively investigated in previous studies, yet are vital in integrating CRM and RevM practices.     

Global strategies in the international hotel industry

A two stage qualitative research methodology is used to evaluate the forces driving the adoption of global strategies in the hotel industry and the strategic response of international hotel chains to those “drivers”. Information gathered from industry experts is used to develop a set of hypotheses which are then tested against evidence provided by interviews with senior executives and other data.The results indicate that global strategy is most influenced by market factors, other drivers having much less influence. Cost drivers are constrained by limited economies of scale and standardization opportunities. Globalization is most marked in the thrust for a broad geographic presence in key overseas markets, the pursuit of global branding, positioning and uniform service standards. At the same time, customers expect “responsive” policies in areas such as facilities and services provided. Opportunities for greater integration and concentration of “back-office” functions, where information-based systems allow for cost economies and enhanced coordination, often remain relatively unexploited, primarily due to institutionalized management practice and control constraints.     

The impact of quality management on productivity in the hospitality sector

This paper attempts to determine the relationship between quality and productivity in the hospitality sector. Although both variables are crucial to the competitive and value creation processes in hotels, few empirical studies have explicitly analyzed the relationship between them. Thus, we estimated a production function for a hotel sample that shows how a set of determinants influences labour productivity. Among these determinants we included different quality variables, defined from the point of view of total quality. The estimation results show a direct and significant effect of quality on labour productivity. This suggests that the implementation of total quality management (TQM) systems, or the adoption of the TQM principles, have a positive impact on hotel labour productivity.     

Towards an understanding of total service quality in hotels

The importance of service quality for business performance has been recognized in the literature through the direct effect on customer satisfaction and the indirect effect on customer loyalty. The importance was recognized by Parasuraman et al. [1985. A conceptual model of service quality and its implications for future research. Journal of Marketing 49(4), 41–51] in the development of SERVQUAL, a measure of perceived service quality across industries. Although the importance of service quality and service quality measurement has been recognized, there has been limited research that has addressed the structure and antecedents of the concept for the hotel industry.This research addresses the antecedents and structure of service quality in the context of the luxury and first class hotel sectors. The data are analysed using exploratory and confirmatory factor analysis approaches and a structural model is used to test the structure of service quality.The paper clarifies the dimensions and structure of service quality in the hotel industry. The clarification of the dimensions is important for managers in the hotel industry as it identifies the bundles of service attributes consumers find important. The clarification of the structure is also important as it confirms, in a hotel context, that customers see service quality in its entirety as a second order dimension.     

Vertical inequity in the tax assessment of lodging properties

Property taxes constitute a significant expense for owners of lodging properties. Both the real estate literature and the hospitality literature suggest that property tax inequities exist within various taxing jurisdictions and several models for measuring these inequities have been proposed. Measurement of vertical inequity can produce evidence of inequitable assessments that property owners may be able to use to challenge their properties’ assessed values. This study applies several statistical models to measure vertical inequity for hotel properties using sample data. The sample consists of 872 hotels sold between 1999 and 2004 in Florida. The results indicate that vertical inequities do exist in this sample, with lower valued properties being assessed at a higher proportion of market value than higher value properties. The results make the case that owners of properties in lower value ranges should carefully monitor the assessment process to minimize their property tax expense.     

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.     

Training plans,manager's characteristics and innovation in the accommodation industry

This paper explores the effect of training plans and managerial characteristics on innovation activity in the hospitality sector. This sector is featured by being labor-intensive so the examination of employment and managers skills deserves attention in order to determine the level of quality and competitive advantage in the provision of services. The data in the paper comes from a questionnaire administered to hotel managers in a representative sample of hotels in the Balearic Islands, a leading tourist destination. Results suggest that training plans positively affect innovation-related decisions and the extent of their implementation; however, managers should have more than experience to manage the innovation change, specifically skills and capabilities.     

A critique of the issues and theoretical assumptions in service quality measurement in the lodging industry: Time to move the goal-posts?

The article critically reviews the conceptual issues which surrounds the measurement of service quality. Methodological issues are not addressed. The critique centres upon the gap model and its associated instrument SERVQUAL and argues that, despite progress, all the original problems remain in place. A conclusion which leads firstly, to the suggestion that the dimensions of the model might be re-tested using different scaling techniques and secondly, to the advocacy of the adoption of a wider psychological perspective and one which goes back to the fundamentals of evaluative processes.     

What hinders hotels’ adoption of environmental technologies: A quantitative study

In response to our planet’s severe environmental problems, many businesses use environmental technologies to strengthen their environmental performance. However, the adoption rate of using such technologies in hotels is still slow, and very few quantitative studies have examined the reasons why. This study examined the barriers to environmental technology adoption in the Hong Kong hotel industry. We sent 648 questionnaires to the target sample and eventually received 102 completed responses. Seven barriers were identified: (1) monopolised after-sales service; (2) human resource limitations; (3) government and initial support; (4) financial performance; (5) lack of green knowledge and green network; (6) customer experience; and (7) environmental feasibility. An independent samples t-test and analysis of variance (ANOVA) were conducted to investigate the relative significance of the seven barriers for different hotel demographic variables. This study offers specific theoretical and practical implications. Recommendations for the industry are also provided.