Higher tourism specialization,better hotel industry efficiency?

This study examines the effects of both specialization in tourism and market competition on the efficiency of the hotel industry. For this purpose, stochastic frontier analysis (SFA) was employed to evaluate the efficiency of the hotel industry on a provincial level in China and to analyze how it is impacted by specialization in tourism and market competition. The results confirm that tourism specialization and market competition exert a synergistic effect on hotel industry efficiency in China. This study finds that tourism development as represented by a high level of tourism specialization by a destination does not guarantee high efficiency in hotels but does enhance the negative effect of market competition on hotel industry efficiency. Significant policy and managerial implications stem from these findings.     

International franchising: Opportunities for China's state-owned hotels?

The hotel industry in China faces global competition. Most of the state-owned hotels have struggled during the period of transition from a planned economy to a market economy. Furthermore, international franchising hotel chains have entered China with their different operation modes. Could the franchising hotels bring opportunities for state-owned hotels? In an attempt to answer this question, the researchers carried out a study of state-owned independent hotels and state-owned franchised hotels to analyze their external and internal business factors, their intentions to join international franchise operations and the international hotel franchisors in China. The research technique used was qualitative. Two rounds of in-depth interviews were conducted. Content analysis was used in the data analysis. Results indicate that the majority of state-owned independent hotels have intentions to join an international franchise operation in the next 5 years. It also identified major factors affecting the franchising of state-owned hotels in China. However, franchising may not be attractive to those hotels that want to keep their management culture and characteristics. Implications of the study were discussed. Recommendations were provided to the state-owned hotels. Future research studies have been suggested to examine the relationships between franchisors and franchisees.     

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.     

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.     

饭店非正式员工工作满意度研究

在饭店行业,随着国外著名饭店集团的进驻,民营企业饭店的发展壮大,国有饭店企业改制的推进,饭店之间的竞争日趋白热化.为增强企业的竞争力,获得满意的经营利润,饭店不断通过雇佣大量的非正式员工来确保总成本上的竞争优势.在这样的背景下,本文通过实证研究探寻中国饭店非正式员工工作满意度的影响因子以及各因子的影响程度,在此基础上建立了非正式员工管理的 SPAR 模型,并从工作压力、工作态度和工作单位认可三个角度提出非正式员工管理的具体对策,以期对饭店企业非正式员工的管理提供借鉴和参考.     

Facilitating Benchmarking with Strategic Grouping and Data Envelopment Analysis: The Case of International Tourist Hotels in Taiwan

For a performance measure to be instructional in future operations, selecting the right strategic groups of firms from which appropriate benchmark targets are to determined is important in the development of business strategies. The immediate question is how to group firms and choose the best benchmark. In this study, a revised context-dependent data envelopment analysis model is applied to identify multilevel strategic groups. Empirical data are obtained for 56 international tourist hotels in Taiwan. Five strategic groups are identified in terms of efficiency frontiers, and the hotels within the groups are ranked by attractiveness scores that reveal their competitiveness. The hotels are also assessed by progress scores that reveal the effort needed for them to advance to a higher level. By integrating both these scores, a clear benchmarking path is designed for each hotel. This path can guide inefficient hotels to identify suitable role models for excellence.     

You’re the Only One,or Simply the Best. Hotels differentiation,competition, agglomeration,and pricing

Drawing on competition, signalling and agglomeration perspectives, we investigate how vertical and horizontal differentiation influence price, and how hotel competition and agglomeration may moderate any such effects. We argue that vertical differentiation should include online reputation to complement category, and that hotel clustering can provide benefits for incumbents. Hypotheses are tested using quantile regression on a sample of 1870 hotels. In order to account for any service dimensions, an index of differentiation is estimated. We found that local competition and agglomeration moderates the relationship between differentiation and pricing. Furthermore, online reputation effects are more intense for low priced hotels. Indeed, when competition is intense, the positive effect of horizontal differentiation is lower for low priced hotels. Similarly, hotel clustering reinforces the impact of category on price, but it reduces the benefits of offering more services.     

Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors

With the market competition of hotel industry being heated, it is critical that hotels have a breadth of resource and more flexible forms to meet the needs of a changing marketplace. In the past, the relation of total quality management (TQM), market orientation, and performance are equivocal. These mixed results may be due to some factors or not to include the environmental factors. This study adopts the Input-Processing-Output (IPO) concept model to construct all variables research model. The research surveyed samples of 588 and used Structural Equation Model and discriminate analysis for analysis and testing. The results show that TQM positively affects hotel performance. Market orientation positively affects hotel performance. Market orientation has the mediating effect between TQM and hotel performance. External environment factors truly play a moderator between TQM, market orientation and hotel performance, especially when external environment factors greater changes are going to help to build relationship with customer, to enhance hotel performance and further to gain chance of hotel's survival.     

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.     

To Ban or not to ban rate parity,that is the question… or not?

Considering the heated debate in the hotel industry about the rate parity clause and the appropriateness of its ban to give rise to rate disparity, this article analyzes the hotel performance that has resulted from the rate parity prohibition established in some European countries, by looking into the market value of the hotels involved. The empirical analysis conducted on a sample of hotel companies trading on the stock exchange in Germany and France shows that the approval of the rate parity ban generates positive abnormal returns. However, an increase in risk is detected. It seems that, while the prospects of greater autonomy to set prices in the hotel industry and stronger competition in the online distribution industry are looked at positively, the hotels will have to deal with a customer’s potential higher perception of price unfairness, less control over its own brand and a greater likelihood of price wars.     

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.     

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.     

Can innovative behavior be led by management? A study from the lodging business

This study examined the effects of hotel management leadership on employee innovative behavior in Chinese hotel organizations. Using a dyadic sample of 164 hotel supervisors and 603 service employees at 23 four-star and five-star hotels in 11 Chinese cities, we investigated whether organizational commitment mediated the effects of leadership on employee innovative behavior. We also examined how organizational tenure moderated leadership and innovative behavior through organizational commitment. Findings from our moderated-mediation model revealed that organizational commitment mediated the relationship between leadership and innovative behavior. Similarly, organizational tenure moderated the relationship between leadership and organizational commitment: there was a stronger relationship for long-tenured employees and a weaker relationship for short-tenured employees. However, the effect of higher leadership on organizational commitment was stronger for short-tenured employees than long-tenured employees. Our results spotlight the importance of fostering organizational commitment, which directly affects innovative behavior and through which supervisors can influence individual innovative behavior.     

Benchmarking the Asia Pacific tourism industry: A Bayesian combination of DEA and stochastic frontier

This study measures and compares the efficiency of leading tour operator and hotel companies across several Asia Pacific countries. We use an innovative methodology that is based on combining the stochastic frontier and data envelopment analysis in a Bayes framework. We show from the results that Australia, Singapore and South Korea are the most efficient in both their tour operator and hotel industries. We further show that international hotels in the region have a slightly higher efficiency than local hotels. We provide a listing of the most efficient tour operators and hotels in each country and discuss the implications of our findings.     

Marketing strategies for hotels

The aims of this article are to investigate the application of hotel marketing strategies by independent vs group (chain) hotels and to investigate comparatively the performance — along a number of criteria — of these two types of hotel organisation.The study presents in detail the main stages in developing a hotel marketing strategy and a taxonomy of the 9 major strategies available for hotels, discussing their features, characteristics and when appropriate for application.Any meaningful analysis of hotel marketing should be based on the marketing strategies employed by the individual establishment and group/chain organisation. No doubt effective selling of hotels' products and services depends to a large extent on the marketing strategies selected. As the market for hotels' services is dynamic and accompanied by rapid changes in the environment due to uncertain economic conditions, increased competition, advancement in technology, and inflation, increased attention will be given by hotels in the future to the selection of an appropriate marketing strategy.     

Game theoretic pricing models in hotel revenue management: An equilibrium choice-based conjoint analysis approach

This paper explores a game-theoretically founded approach to conjoint analysis that determines equilibrium room rates under differentiated price competition in an oligopolistic hotel market. Competition between hotels is specified in terms of market share functions that can be estimated using multinomial logit models of consumer choice. The approach is based on choice-based conjoint analysis that permits the estimation of attributes weights (“part-worths”) for an additive utility formulation of the utility function. From this, room rates that equilibrate the market, conditioned on the differences in services and facilities offered by competing hotels, can be determined. The approach is illustrated by an example.     

Types of agglomeration effects and location choices of international hotels in an emerging market

When international chain hotels are seeking new locations in which to establish new properties, local knowledge of those locations is essential for success. By incorporating agglomeration and internationalization research, this study investigates how international hotels can acquire that local knowledge from the existing hotels. The study presents two different kinds of hotel agglomerations (same-country-of-origin and higher-differentiation agglomerations) as sources of local knowledge and shows how international hotels might select their locations based on types of agglomerations and their entry strategies. The study employs conditional logistic regression, using a sample of international hotels in China. Results indicate that international hotels, especially those with franchising, are more likely to choose a location where the hotels from the same country of origin are highly located. Because they share the same culture and business practices, new hotel entrants may more easily assimilate the local knowledge that compatriot hotels have accumulated.     

Strategic groups in the hospitality industry: Intergroup and intragroup performance differences in Alicante, Spain

The hotel sector is currently immersed in a very uncertain, highly competitive environment, due to which it needs information for the correct management of its establishments. This information can be obtained from the classification of hotels in strategic groups. The present empirical research presents strategic groups in the hospitality industry as a useful tool for the planning and implementation of strategies by hotels that helps to determine their competitive strategies and advantages. This research paper additionally shows how the levels of performance between the hotels belonging to each group can be evaluated from strategic groups. In this study, the tool is applied to the hotel sector of the Spanish province of Alicante, a very important geographical area in the context of international tourism. The dimensions resource commitment and tourist activity scope have been used to define the strategic groups.     

Hotel Theming in China: A Qualitative Study of Practitioners’ Views

Facing increasing competition, many hotels have adopted “theming” as a marketing strategy. Although still in its fledgling stage, hotel theming has already gained popularity in the growing Chinese hotel market. This study conducted focus group discussions to understand the concepts behind hotel theming in China. Respondents were 41 practitioners from the Chinese hotel industry, who were enrolled in an executive graduate program. Data revealed that hotel theming has four analytical dimensions, namely, the current state, perceived facilitators, inhibitors, and future prospective for developing such strategy in China. Results showed that the specific traits of the Chinese hotel market are highly important for the success of hotel theming in the given context.