Travel Package Modeling: Optimal Bidding Strategy of Tour Operator to Cooperative Hotels

In the travel package industry, in order to obtain stable and sufficient source of hotel rooms for package products, the tour operators would like to cooperate with hotels located at the tourism destination. Meanwhile, the hotels also appreciate the cooperation as a way to improve occupancy rate and then revenue. This paper develops models of travel package in several scenarios to analyze the relationship between the tour operator and the hotel. Through theoretical analysis and numerical studies, this paper finds that the tour operator will bid a low wholesale room rate to the hotel with high capacity or/and a small number of individual tourists. On the other hand, the hotel with large capacity or/and less individual tourists will reserve more rooms for the travel packages, while the one with high room rate and stable source of individual tourists is not likely to remain so many rooms for the tour operator.     

Tour operators and performance of SME hotels: Differences between hotels in coastal and inland areas

This paper studies the differences in the impact of global tour operators on the management and performance of hotels in coastal and inland areas. The empirical analysis is based on a survey conducted in 2016 on 375 Spanish SMEs operating in the hotel industry. A multi-group comparison analysis was carried out using Partial Least Squares (PLS) structural modelling. This analysis reveals that dependence on global tour operators has a direct effect on the conditions under which hotel services are provided (room rates and quotas) both in coastal and inland areas. Nevertheless, the pressure from tour operators is significantly stronger on hotel SMEs located in coastal areas, where it has a negative effect on profitability, in spite of having a positive influence on firm growth (sales and employment).     

The price competitive position of Mediterranean countries in tourism: Evidence from the Thomson brochure

Tourism in the Mediterranean region is highly dependent on the few, large, mass market tour operators situated in the North European tourist originating countries. Price competition is intense both between the tour operators and between the Mediterranean countries themselves. This paper uses the hotel package prices listed in the Thomson summer and winter brochures to develop relative price indexes of each Mediterranean country with respect to the Mediterranean average. Indexes are developed in the 3 star, 4 star, 5 star, 7 nights and 14 nights, half-board holiday packages. The prices in the Thomson brochure can be regarded as a unified, internally consistent, set of price data, compiled by the largest UK tour operator and offered to UK tourists desiring a Thomson summer holiday. The change through time of the competitive relative price ranking of hotels, regions and countries listed in the Thomson brochure, may be regarded as an important competitive indicator by industry operators and national policy makers concerned about tourism development.     

Modeling a green supply chain in the hotel industry: An evolutionary game theory approach

Despite extensive discussion of environmental management for hotels, little research has been done on the hotel industry’s green supply chain management. This study uses the evolutionary game approach to examine the generation of green behaviors and a green supply chain by hotels. Results show that most hotels do have an incentive mechanism for green growth; hotels with green behaviors are more profitable than those that are not. Furthermore, governments and hotel customers are critical in the “greening” of traditional hotel supply chains. The findings can assist governments in formulating effective environmental policies, provide a theoretical avenue in governing green practice, and guide stakeholders to understand the formation and evolution of green development in the hotel industry.     

The efficiency of the hotel industry in Singapore

Existing literature related to evaluating the efficiency of the hotel industry, generally, uses different types of radial Data Envelopment Analysis (DEA) to compare the relative efficiency of different hotels in a location. This research note has adopted a different approach by treating years as decision making units (DMUs). This will allow policymakers to evaluate the relative efficiency of a hotel industry as a whole over a specified time period so that the effects of the occurrence of events on the efficiency of hotel industry can be evaluated. This study focuses on the efficiency of hotel industry in Singapore from 1995 to 2010. The analysis is carried out using the non-radial DEA called the Slacks-Based Measure (SBM) to identify the efficient years. Then the efficient DMUs are ranked with the SBM model of super-efficiency.     

Effectiveness of the hotel websites in Singapore: A perspective from Business‐to‐Business (B2B) organisations

Internet marketing in hotels allows potential users to learn about the hotels, to tour hotel facilities and to compare prices among other benefits without directly interacting with a hotel representative. For some users, Internet is the first and only channel consulted when booking hotel accommodations. In the present age, Internet is increasingly becoming both an opportunity and a challenge for hotel marketers. The opportunity lies in reaching users directly through Internet sites. The challenge is to get the guests’ attention long enough to tell the marketers’ story (Connolly, Olsen and Moore, 1998). It has always been controversial as to how effective Internet marketing can be. Both firms and researchers have indicated that the measuring of effectiveness of Internet marketing is a multidimensional question. This study sought to examine the effectiveness of business‐to‐business Internet marketing in the hotel industry in Singapore through analysing the differences between the travel agents expectations of service and hotels’ understanding of those expectations. A total of 66 hotel websites in Singapore were scanned to give the features analysis. On the basis of the perception scores of 112 inbound travel agents, the study identified the gaps between the users and the website provider (hotel industry).     

Privatization,market competition,international attractiveness,management tenure and hotel performance: Evidence from Slovenia

This paper tests several hypothesis related to the impact of privatization, market competition, management tenure and international attractiveness on the cost efficiency of tourist hotels. We measure efficiency using the innovative Bayesian frontier methodology. The data involve a sample of Slovenian hotels which operate in a highly dynamic environment. From the results, it is clear that hotel efficiency is positively related to privatization and international attractiveness, and negatively related to longer management tenure. No significant link, on the other hand, is found between market competition and hotel efficiency. Further discussions of these findings and related managerial implications are provided.     

Cost Efficiency and the Choice of Operation Type: Evidence from Taiwan's International Tourist Hotels

This study investigated the endogenous relationship between the differences in cost efficiency and hotel owners' choices of either remaining an independently operated establishment or joining an international chain. We applied observations of 72 international tourist hotels in Taiwan from 1997 to 2008 to a simultaneous equations model with qualitative and limited dependent variables. The study results suggest that joining international chains significantly improves cost efficiency. We also found that net gains from improving both cost efficiency and hotel location are the two foremost determinants for an owner's decision to join an international hotel chain.     

Destination characteristics that drive hotel performance: A state-of-the-art global analysis

The increased market saturation and competition in both domestic and international tourism destinations have renewed interest among hotel operators in identifying the key drivers of hotel performance. This paper presents a comprehensive analysis of the determinants of hotel performance and their relative importance across multiple tourist destinations. We employ a two-step estimation method to identify key determinants of hotel performance, using a rich sample of international hotels. Our empirical analyses show that the main drivers of hotel performance are the quality of the educational system, government support, disposable income, and number of international arrivals within a tourism destination. Results indicate that the most important barriers to hotel performance are the competition among accommodation providers, tax rate and fuel price. We argue for the need for hotel providers to develop strategies that take cognisance of the key drivers and barriers to enhancing hotel performance in an ever-changing global tourism sector.     

Mainland Chinese Tourists to Hawaii: Their Characteristics and Preferences

Tourism is the most economically important industry to the United States' only island state, Hawaii. With Hawaii's highest spending and largest international tourist segment, Japanese, decreasing significantly (a loss from over 2,000,000 in 1997 to just over 1,000,000 Japanese visitors in 2009), Hawaii needs to prepare to replace the significant decrease of Japanese visitors with a new visitor market. The logical new international visitor target market would be tourists from the fastest growing economy in the world, that being China. The purpose of this study is to explore the differences in attitudinal and behavioral characteristics, and preferences of Chinese tourists in Hawaii according to key sociodemographic variables. The results of this study conclude that sociodemographic variables show significant differences in attitudinal and behavioral characteristics. For example, when comparing the number of times a respondent had visited Hawaii, first-time visitors showed the highest level of preference for a deluxe hotel while second-time visitors showed the highest level of preference for a budget hotel. Those who had visited Hawaii three or more times indicated the highest preference for a first class hotel and also to be more interested in high-end shopping. First-time visitors showed the highest percentage in the lowest category of estimated cost of gifts (US$0–US$300). This indicates that Hawaii tour operators should focus on introducing more discounted shopping to first-time visitors.

The results of this study are likely to be beneficial for understanding Chinese tourists and establishing marketing policies to enhance their satisfaction and raise their intention to revisit Hawaii. The findings of this study could be helpful for all stakeholders including local tour operators, the hotels, and Hawaii's tourism officials.     

A stochastic cost efficiency analysis of international tourist hotels in Taiwan

The one-stage stochastic frontier approach (SFA) is used in this study to simultaneously estimate cost efficiency scores and factors of cost inefficiency for 66 international tourist hotels in Taiwan during 1997–2006. An SFA model with three outputs and three inputs is defined. The three outputs are room revenue, food and beverage revenue, and other operation revenue while the three inputs are price of labor, price of other operation, and price of food and beverage. This model also takes into account five environmental variables, including dummy variable of the hotels located in non-metropolitan area, dummy variable of chain hotels, the number of tourist guides, the minimum distance from each hotel to Taoyuan international airport and the minimum distance from each hotel to Kaohsiung international airport. Empirical results show that international tourist hotels in Taiwan are on average operating at 91.15% cost efficiency. All nominal variables are transformed into real variables in 1997 prices by GDP deflators. Chain systems, tourist guides, and international transportation can significantly improve the cost efficiency of international tourist hotels in Taiwan.     

Reducing tourism's threats to biodiversity: effects of a voluntary sustainability standard and training program on 106 Latin American hotels,lodges and guesthouses

The tourism industry can negatively affect wildlife, plants and natural ecosystems through habitat destruction, pollution, over-exploitation of natural resources and visitor impacts to sensitive ecosystems. One approach to mitigate such threats is the application of voluntary sustainability standards, supported by training of tourism enterprises and verified by external audits. The Rainforest Alliance standard defines 78 criteria (requirements) for sustainable environmental, social and business practices, and has been adopted by over 600 tourism enterprises – including hotels, lodges and tour boats – in 12 countries. We examined the performance of 106 hotels in six Latin American countries against 29 of the sustainable tourism criteria most directly related to biodiversity conservation. Independent audits were used to assess hotel performance at baseline followed by a repeat assessment after training, about two years later. Mean conformance with the 29 biodiversity criteria increased significantly during this interval, from 44% to 58%. Improvements were greatest for businesses in the lowest third of performance at baseline (laggards) and smallest for hotels in the highest third (leaders). The results indicate that a voluntary sustainability standard and training program can serve both to recognize existing good actors and to drive incremental improvement in enterprises that were previously less sustainable.     

Hotel efficiency: A bootstrapped metafrontier approach

This paper introduces the metafrontier concept to account for the environmental and technological differences between various hotels groups. The interesting feature of the model is that it ensures that heterogeneous hotels are compared based on one homogenous technology. We test the model using a panel data sample of 78 Taiwanese hotels. The results clearly indicate that the size, ownership, and classification of a particular hotel have a significant impact on its efficiency. More implications of the results are provided.     

Hotel efficiency: A bootstrapped metafrontier approach

This paper introduces the metafrontier concept to account for the environmental and technological differences between various hotels groups. The interesting feature of the model is that it ensures that heterogeneous hotels are compared based on one homogenous technology. We test the model using a panel data sample of 78 Taiwanese hotels. The results clearly indicate that the size, ownership, and the classification of a particular hotel have a significant impact on its efficiency. More implications of the results are provided.     

Systematic effects of crime on hotel operating performance

We examine the systematic effects of crime on hotel operating performance based on data from a sample of 404 Houston hotels from January 2009 to December 2014. Econometric results show that Part I crime (i.e., violent and property crime) incidents have a significantly negative impact on hotel operating performance (measured by revenue per available room), ceteris paribus. Also, the marginal effect of crime declines as crime density level increases. Separate examinations of violent and property crimes show that they exert significant and negative impacts on hotel operating performance, with the impact of violent crimes being more substantial. In addition, the results reveal that both nighttime and daytime crime incidents significantly and negatively impact hotel operating performance. Finally, as evidenced by the insignificant impact of crime incidents occurring on hotel premises, the results suggest that hotels are generally effective at maintaining systematic security measures and preventing crime incidents from occurring.     

How psychological and contextual factors contribute to travelers’ propensity to choose green hotels?

Despite the growing popularity of green hotels, there remains a dearth of research examining travelers’ intentions to choose green hotels. The study addresses this research gap by developing and testing an integrated model of green hotel behavior in an emerging market of India. We use a sequential approach of SEM and fuzzy set qualitative comparative analysis on 347 responses collected from Indian travelers to gain a more in-depth understanding of the role of biospheric value, green trust, willingness to pay premium, attitude, subjective norms, and perceived behavioral control in determining green hotel intentions. The findings show that presence of green trust is a significant and necessary condition for green hotel choice. Additionally, absence of willingness to pay premium, biospheric value, attitude, and subjective norm were found to deter travelers from choosing green hotels. These findings offer unique insights for managers in developing marketing strategies to enhance travelers’ green hotel adoption.     

Attitude Towards Green Hotel by Hoteliers and Travel Agency Managers in Taiwan

Analysis is performed by green hotel features: energy conservation, water conservation, waste management, green purchasing, and corporate social responsibility. Questionnaires were distributed to managers of hotels and travel agencies via snowball-sampling. Findings show that hoteliers have higher green hotel attitudes than travel agency managers. By gender, female managers have higher green hotel attitudes. Managers with less work experience have higher green hotel attitudes. Managers who work for upscale hotels have higher green hotel attitudes than managers of typical hotels and travel agencies. Managers working in south or east Taiwan have higher green hotel attitudes than those in north or central Taiwan.     

Can Response Management Benefit Hotels? Evidence from Hong Kong Hotels

With the growing influence of online reviews, more hotels are adopting online response management, but whether this works and benefits a hotel has rarely been studied. In this research, we study the impact of response management on hotel online ratings using data retrieved from TripAdvisor with a focus on Hong Kong hotels. We find that (1) high class hotels are more likely to adopt response management; (2) there is no significant difference among different hotel classes in terms of response rate; and (3) targeted response management has a significant positive effect on hotel ratings. In addition, Asian customers tend to give lower ratings than Western customers. We outline specific implications for hotel managers and their online management and offer suggestions for future research based on the empirical findings.     

Competing resort hotels Word-of-mouth communication and guest retention

Word-of-mouth (WOM) communications were the most often reported method of first learning about hotel choices in an ocean resort area. WOM communications were associated positively with customer retention by resort hotels, ie resort hotels having the most WOM communications had the highest reported most recent visits from customers known to have stayed at the respective hotels. Specific hotel services perceived to have been better than expected were found to be associated with WOM communication. The study Included a five-page questionnaire sent to samples of customers of six hotels. Comparisons of WOM communications by customers across hotels are provided.     

The influence of uncertain demand on hotel capacity

We examine the effects of uncertain demand on hotel capacity using the operation data of international tourist hotels in Taiwan from 1996 to 2008. Abel (1983) argued that demand uncertainty leads to an increase in the capacity of a firm if uncertain demand takes the form of output price uncertainty for the competitive market. We empirically test Abel's model. Our findings support the demand uncertainty hypothesis in Abel's model. Moreover, our results indicate that effective management of hotel capacities is a more important issue for managers of medium-sized hotels than for small or large-sized hotels in the Taiwanese hotel industry.