Internationalization of US multinational hotel companies: Expansion to Asia versus Europe

Internationalization has been a major expansion strategy for many US corporations including hotel companies. Some researchers argue that internationalization adds value to firms while others hold an opposite perspective. This study examines impacts of general internationalization of US multinational hotel companies (MNHCs) on firm value, estimated by Tobin's Q. Second, the study examines differences between internationalization of US MNHCs in different regions, that is, Asia and Europe. Lastly, the study tests a curvilinear relationship between internationalization and firm value.     

Pricing determinants in the hotel industry: Quantile regression analysis

Due to the skewed distribution of hotel prices, quantile regression provides a more flexible and complete characterization of the determinants of the hotel prices at the higher and lower tail of the distribution. This study applies quantile regression approach to investigate the major determinants of hotel room pricing strategies. The ordinary least square regression is also used for comparative purposes. The data are drawn from 58 international tourist hotels in Taiwan and average room rate (ARR) is used as the proxy of hotel room price. The results of OLS and quantile regression share common characteristics but also have differences in some aspects. The OLS results reveal that number of rooms, hotel age, market conditions and number of housekeeping staff per room are the main attributes of hotel room rate. The quantile regression results further demonstrate that room number and the number of housekeeping staff per guest room do not significantly influence hotel price at the low price quantile. Hotel age and market conditions are only significant determinants in high-price category. Additionally, for the high-priced quantile hotels, the proportion of foreign individual travellers positively and significantly influences room price. The empirical results can help hoteliers in shaping investment and pricing strategies.     

Stock market reactions to entry mode choices of multinational hotel firms

This paper contends that when entry mode choices are aligned with the characteristics of the host country, investors are likely to respond more positively to the expansion announcement than when there is no or little alignment. Empirical results from the international hotel industry support this contention. The findings specifically reveal that the announcements of new management contracts in developing countries, and new franchise agreements in developed countries, cause superior abnormal returns. The study also further supports the notion that control and ownership need to be treated as separate dimensions in the entry mode literature.     

Identification of the reactions of hotel managers to new competition

This paper arises out of research carried out recently on the impact of a new hotel on the other hotel businesses which are operating in the same market. To ascertain the possible reactions of hotel managers to new competition and the relative importance of alternative price and non-price strategies a postal survey of 250 three-and four-star graded hotels across the U.K. was undertaken. It was found that a change in published tariff rates is regarded as being relatively unimportant whilst sales promotion is given the highest priority. Disaggregation of the sample by hotel size and occupancy rates does not reveal any significant changes in the relative importance of possible strategies. While the survey indicates that both non-price and price competitive strategies are seen by managers as essentially complementary, nevertheless, price competition in the form of secret discounting of published room rates to mass market intermediaries (tour operators and travel agents) and corporations is particularly important. While price discounting is the ‘private’ face of hotel competition much more research is needed on both the ‘public’ and ‘private’ nature of competition in the hotel industry and how these inter-link.     

Locational strategies of international hotel chains

An empirical study was undertaken into the expansion strategies of international hotel operators in five countries in Eastern Central Europe. A questionnaire survey was conducted of the leading chains, framed around an eclectic paradigm. The analysis was complemented with multivariate analysis of competitive and locational strengths, thereby permitting additional insights into the relative positions of the major companies. The major ownership advantages were knowledge of guest requirements, strategic planning, and reservation systems. Locational advantages identified consisted of the size and nature of the city in which the hotel was to be located, the infrastructure within the region, and the perception of the region as an attractive business destination.     

An exploratory analysis of turnover culture in the hotel industry in Australia

This study explores the concept of turnover culture in the hotel industry, drawing on the extensive literature on both organisational culture and turnover. A questionnaire was developed and administered to non-supervisory hotel employees. Using a cluster analytic approach, nine distinct clusters of variables were produced. One cluster containing pertinent turnover and organisational culture variables was isolated from other clusters as turnover culture. The implications for management practice in controlling a turnover culture are examined, as is the need for further research into this concept.     

Tourism: the measurement of economic and social impact

This paper identifies the need to consider the impact of tourism as an economic and social activity in any broad assessment of the impacts of tourism developments. A number of factors must be accounted for in measuring such impacts, which derive from the nature of the tourism activity, eg tourism is a dynamic agent of change, it is an amalgam of a number of industrial activities, it occurs within distinctive contexts etc. The question therefore centres on the methodology employed to measure the distribution of the costs and benefits of tourism.     

The European hotel: methodology for analysis of financial operations and identification of appropriate business strategy

One of the long established hotel accounting traditions is the use of operating ratios in the control and evaluation of operating efficiency. However useful the operating ratios for control purposes, over-reliance on this single control technique leaves the hotel operator with insufficient insight into the economics of hotel operation. The example given here is a model of a 100-bedroomed European hotel.     

Performance analysis of the Gulf hotel industry: A Malmquist index with bias correction

This study uses the Malmquist index with bias correction to analyze the performance of hotel chains from the UAE, Saudi Arabia and Oman. We show that Saudi Arabia hotel chains have the highest productivity growth, followed by the UAE and Omani hotel chains. A further decomposition of productivity indicates that a small number of hotel chains experienced an increase in revenues for lower occupancy rate, while most other hotel chains experienced an increase in occupancy rate for lower revenues. Related market discussions of the results are provided.     

Establishing attributes of an environmental management system for green hotel evaluation

This study establishes attributes of an environmental management system (EMS) for the hotel industry in Taiwan to create an instrument to help address green hotel auditing. Hotel EMS indicators were initially selected from ISO14000 and nine representative foreign green hotel assessment systems. The Delphi method conducted on twenty five experts with government officials, scholars and hotel managers for item modification to identify the preliminary EMS evaluation framework. An indicator selection process was employed to determine the dimensional indicators of the system. The data analysis reveals that a total of 64 indicators into ten dimensions were identified and prioritized in terms of their relative importance and feasibility. Moreover, 38 indicators are suitable for use and 18 of them should be implemented firstly in Taiwan hotel industry. The results also reveal the comparison with Taiwan government's environmental standards. Finally the EMS approach of this study provides managerial implications for government, hoteliers and consumers to improve their environmental management.     

Strategic planning and business performance in the quoted UK hotel sector: results of an exploratory study

The purpose of this study was to conduct an exploratory investigation of the relationship between strategic planning and business performance. A multidimensional model of 11 variables was formulated after a review of the strategic planning-performance literature. Data were obtained from 63 hotel units representing eight quoted hotel companies, and various planning-performance relationships were examined. The results indicated that the key planning characteristics of throughness, sophistication, participation, and formality were positive, and in most cases significantly related, to seven indicators of business performance.     

Spatial and temporal patterns of demand for hotel accomodation: Time series analysis in Yorkshire and Humberside,UK

This article is concerned with the identification and interpretation of spatial-temporal patterns of demand for hotel accomodation. Time-series factor analysis is applied to a set of monthly hotel-occupancy series recorded by the Yorkshire and Humberside Tourist Board (YHTB) for 101 hotels in Yorkshire and Humberside, UK, from April 1982 to March 1983. Three major temporal components of expressed demand for hotel accomodation (reference curves) are identified, reflecting differences in occupancy level, the intensity of seasonal fluctuations, and the length of season. The hotels are differentiated, and then grouped, on the basis of their individual parameters on the three reference curves. The spatial-temporal patterns identified form the basis of continuing research which aims to aid the formulation of appropriate marketing and development policies for the hotel industry.     

Sustainable water demand management in the hotel sector: a policy network analysis of Singapore

Abstract

Water use in the tourism industry is a vital sustainability issue in destination development. Achieving sustainable water demand management (WDM) is challenging and requires destination stakeholder collaboration for effective participatory policymaking. Taking the WDM of Singapore’s hotel sector as a case, this article applies a policy network analysis to prevailing stakeholder collaboration based on public policy documents published between 2001 and 2015. Thirty-three interconnected organisational stakeholders and 76 policy domains were identified. Longitudinal analyses revealed structural changes in stakeholder collaboration during WDM policy development. The findings also indicate that the policy stakeholders of WDM are becoming increasingly diverse, and with this expansion in stakeholder participation, the collaboration network has evolved from being simple to remarkably complex. This article also discusses the relationship between policy stakeholders and policy domains, revealing that the responsibility, available resources, and interests of stakeholders are the main factors influencing their policy preferences in this discourse. The results enrich our understanding of inter-stakeholder relationships and the dynamic relational structure of interdisciplinary policy system.     

An investigation of green hotel customers’ decision formation: Developing an extended model of the theory of planned behavior

The current study sought to extend the theory of planned behavior (TPB), which is rooted in the theory of reasoned action (TRA), to more comprehensively explain the formation of customers’ intention to revisit a green hotel. In particular, the extended TPB incorporates the critical constructs in the consumer behavior and marketing literature (i.e., service quality, customer satisfaction, overall image, and frequency of past behavior) into the original TPB model. Results of a structural analysis revealed that the new model provides a better fit with the data, and explains significantly greater amounts of variance in revisit intention in comparison to the TRA and TPB. Added constructs in the new model considerably contribute to improve our understanding of the complicated process of green hotel customers’ decision-making. In this study, all relationships appeared to be significant as conceptualized according to the theory. In addition, a mediating effect of satisfaction and attitude was found. The article includes discussions on theoretical and managerial implications.     

Impact of financial/economic crisis on demand for hotel rooms in Hong Kong

The main objectives of this study are (1) to identify the factors that influence the demand for hotel rooms in Hong Kong and (2) to generate quarterly forecasts of that demand to assess the impact of the ongoing financial/economic crisis. The demand for four types of hotel room from the residents of nine major origin countries is considered, and forecasts are generated from the first quarter of 2009 to the fourth quarter of 2015. Econometric approaches are employed to calculate the demand elasticities and their corresponding confidence intervals, which are then used to generate interval demand predictions. The empirical results reveal that the most important factors in determining the demand for hotel rooms in Hong Kong are the economic conditions (measured by income level) in the origin markets, the price of the hotel rooms and the ‘word of mouth’ effect. Demand for High Tariff A and Medium Tariff hotel rooms is estimated to have experienced negative annual growth in 2009 due to the influence of the financial/economic crisis, whereas that for High Tariff B hotel rooms is thought to have grown in 2009 after having decreased in 2008. The demand for tourist guesthouse rooms is expected to be the least affected by the crisis. Overall demand is predicted to recover gradually from 2010 onwards.     

Perceptual mapping of attributes and preferences: an empirical examination of hotel F&B products in Korea

A hotel's Food and Beverage (F&B) product is increasingly recognized as an essential component of strategic planning in the hotel business. However, despite the importance of hotel F&Bs, relatively little empirical research has been undertaken to determine major attributes of F&Bs and investigate customers' preferences for them. This study examines the attributes and customer preferences of hotel F&Bs for eleven super deluxe hotels in Korea. Factor analysis is first employed to identify the underlying dimensions of F&B attributes which determine how customers perceive F&B performance. A second technique, multidimensional scaling, is used to reveal customers' perceptions of how a given hotel's F&B differs from the competitors' and preferences of when that hotel's F&B is evaluated better than the others. A meaningful interpretation is delineated from the perceptual map of major F&B attributes and ideal points of customers. The findings suggest that for the ultimate success of F&B management a hotel's F&B manager must make the effective connection between the attributes of hotel F&B and ideal points perceived by customers in various dining-out situations.     

The managerial implications of an analysis of tourist profiles and international hotel employee service attitude

Numerous studies indicate that customer satisfaction is closely related to hotel employees’ service attitude, and that distinct segments of a target tourist market require distinct customer service emphases. The enclosed study finds, for example, that Taiwanese tourists generally appreciate friendliness and enthusiasm, Japanese tourists admire courteousness and propriety, and American tourists value immediacy and efficiency. Marketers and personnel managers are therefore well advised to develop training strategies emphasizing empathy, gracious problem solving, and prompt individual attention for Taiwanese, Japanese, and American tourists, respectively. Importance–performance analysis (IPA) can be used to identify crucial aspects of appropriate service and recommend managerial strategies to support their implementation.     

Destination diversification as an indicator of activity compatibility: An exploratory analysis

Abstract

The concept of activity packages has long been recognized as an important basis for planning outdoor recreation activities. Recent studies suggest, however, that because of definitional and methodological problems, little has been accomplished in helping park planners assess the degree to which activities can be planned together. In this study, we explore the relationship between participation in recreation activities and the number of facilities at which activity takes place. The results suggest that this relationship can be used as a reliable indicator of the degree to which recreation activities are perceived to be compatible. The analyses also suggest that households generally tend to perceive compatibility among recreation activities in the same way regardless of their socioeconomic status. The implications of these findings are considered and shown to be important within the context of park planning.