Dual-branded hotels: Resource-based entry strategies in agglomerated markets

Despite the growing importance of dual-branded hotels, research on this trend is lacking. This study investigates the effect of resource-based entry strategies for dual-branded hotels vis-à-vis incumbent market competition on performance. Using a hierarchical linear model, we found that best performance is achieved by dual-branded hotels that pursue a diversification strategy by entering the market with one brand above and one brand below the mode class of the market. Dual-branded hotels can thus achieve competitive advantage by exploiting superior financial resources and tourism destinations are able to gain monetary advantage from resources employed by dual-branded hotels. This study extends current research on dual-branded hotels by investigating entry strategies and contributes to the resource-based view literature by investigating dual-brands’ resource exploitation and resource spillovers in agglomerated markets.     

Evaluation of hotel brand competitiveness based on hotel features ratings

Understanding the competitiveness of hotel brands is important for hotel managers to shape their brands and initiate effective marketing strategies and business developments. However, evaluating hotel brand competitiveness is challenging due to the complexity of information involved. A hotel brand often comprises many hotels with different performances. Hotel brands are also evaluated against multiple hotel features, thereby making the application of traditional evaluation techniques impractical. This paper introduces a novel technique for automatically evaluating the competitiveness of hotel brands based on probability distribution and earth mover’s distance. We demonstrate the effectiveness of our proposed method by conducting a case study that involves major hotel brands in Hong Kong. The proposed method can be applied in various contexts and can help researchers and managers evaluate the competitiveness of hotels as well as other branded products in the hospitality and tourism sectors.     

Human resource management approaches in Spanish hotels: An introductory analysis

Although Spain is one of the most important tourism destinations in the world, Spanish tourism firms need to be more competitive in order to continue attracting citizens from other countries and human resource strategies can help. The present study aims to identify the specific human resource practices applied by hotels. The variables of interest are those related to human resource profile (number of employees, nationality and sex) and to human resource strategies (recruitment, hiring and training strategies). A survey of the hotel establishments in the Valencian Autonomous Region shows that a hard human resource approach prevails and that hotels apply the same human resource strategies regardless of their category or competitive strategy (universalistic approach).     

The relationship between CRM, RM, and business performance: A study of the hotel industry in Taiwan

This study aims to investigate the implementation of customer relationship management (CRM) and its effect on relationship marketing (RM) and business performance, through an analysis of the hotel industry in Taiwan. A survey on hotels, including general and tourist hotels, and bed and breakfasts (B&Bs) was conducted, and a total of 560 questionnaires were returned. The results showed that implementing CRM has a significant and positive influence on the RM effect, positively affecting business performance for both hotels and B&Bs. However, a comparison of the influential paths of relationship models between hotels and B&Bs showed that, for hotels, the Internet service and customer support functions of the CRM strategy are the main sources of influence on the RM effect and business performance, whereas for B&Bs, the marketing support function of the CRM strategy alone influences the RM effect and business performance. To achieve higher performance, the different types of hotel enterprises should understand their main advantage before implementing key CRM strategies.     

Enhancing online brand experiences: An application of congruity theory

Providing a distinctive brand experience is critical to differentiate each hotel brand from others, due to the intangible characteristics of the hotel industry. Rooted in congruity theory, this study investigated how three congruities (i.e., self-image congruity, online–offline brand image congruity, and value congruity) influenced customers’ online brand experiences and their brand trust. Results from this study indicated both self-image congruity and online–offline brand image congruity significantly influenced both customers’ online brand experiences and their trust toward the hotel's brand. Extending brand experience literature and congruity theory, this study suggested hotels should develop a strategy that could capture these three congruity effects in online and offline channels because these effects should be key determinants for customers’ online brand experiences and their responses.     

How do dynamic capabilities explain hotel performance?

This research study explores the relationship between three dynamic capabilities and their impact on hotel performance. Specifically, we examine the relationship between human resource management (HRM), quality management (QM) and sustainability. In addition, we analyse how QM and sustainability explain hotel performance measured by occupancy rate, average daily rate (ADR) and revenues per available room (RevPAR). These capabilities can generate income, enabling hotels to adapt as quickly as possible to the changing environment. Findings show a significant relationship between HRM, QM and sustainability. The relationship between QM and hotel performance and between sustainability and hotel performance is fully mediated by the differentiation competitive advantage. Our results represent an advance in hotel theory and management because they integrate HRM, QM and sustainability, and show their ability to be a source of competitive advantage and profitability.     

Diversification strategies and failure rates in the Texas lodging industry: Franchised versus company-operated hotels

This research examines the relationship between geographic, brand, and segment diversification and hotel failure rates based on ownership structure, i.e. franchised and company-operated hotels, in the Texas lodging industry. Literature on diversification strategies is mainly based on financial measures of performance and offers mixed results; only few studies have assessed firm failure rates directly based on distinct diversification strategies at the establishment level. The performance outcomes are significantly heterogeneous not only based on the strategies, but also on the ownership structures, which are yet to be examined. Using data from the Texas Comptroller of Public Accounts from 2000 to 2018, a semi-parametric Cox proportional hazard model is estimated, and the findings reveal that failure rates are not significantly tied to particular types of diversification and ownership structures. This research provides insights on hotel diversification strategies and their relative dominance on hotel failure rates based on franchised and company-operated hotels.     

Mapping hotel brand positioning and competitive landscapes by text-mining user-generated content

This study uncovers hotel brand positioning and competitive landscape mapping by text-mining user-generated content (UGC). Rather than relying on a single dimension of consumer evaluation, the current study detects brand attributes by using both customer preferences as well as perceptual performance to develop meaningful insights. For this, the study combines content analysis and repertory grid analysis (RGA) to answer three key research issues. 111,986 hotel reviews from two biggest Chinese cities are used to explore and visualize the competitive landscape of six selected hotel brands across three hotel categories. Findings from the study will not only advance the existing literature on brand positioning and competitive landscape mapping but also help practitioners in developing brand positioning strategies to fight competitors within and across hotel categories.     

Hotel chain affiliation as an environmental performance strategy for luxury hotels

Stakeholders are increasingly aware of the potential of environmental performance to benefit their health; however, there is a paucity of sustainability studies addressing the relationship between corporate social responsibility (CSR) performance and the brand equity of hotel chains. Unlike traditional economics that treat undesired outputs such as carbon emissions as costless, this research presents an accurate, concise and clear empirical examination of hotel chain affiliation strategy through the Malmquist-Luenberger index to measure the brand competitiveness of the strategy while considering carbon emissions reduction using objective official panel data from Taiwan. The findings reveal that a group of hotel chains has a significantly higher average energy efficiency and branding value than those of a group of independent operators when holistic carbon emissions reduction is considered. Thus, this study encourages stakeholders to promote green hotel policies to independent hotel operators to achieve a higher brand value with lower carbon emissions and to adopt greater use of business intelligence to assist the decision-making of hotel operators in conformity with the United Nations (UN) Sustainable Development Goals (SDGs).     

Human resource management and performance in the Barbados hotel industry

This article measures the effect of human resource management (HRM) on performance in the hotel industry in Barbados. It used a quantitative survey covering 46 hotels out of a population of 75 hotels. The respondents were hotel's management, being either a general manager, human resource (HR) manager or line manager. Similar to Hoque's study of UK hotels, the impact of internal and external fit and the universal relevance of HRM were tested. The findings showed no major support for external fit, universal relevance and internal fit in the Barbados hotel industry. All the hotels perceived themselves as performing well, given the focus on quality and targeting high spending tourists. A quest for high service pushes the industry more towards best-practice ‘HRM’ rather than best fit.     

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.     

Market orientation in mid-range service,urban hotels: How to apply the MKTOR instrument

This work analyses market orientation (MO) within hotels and its impact on business performance (marketing, economic and financial results). To achieve this, after developing a measurement scale based on MKTOR, a survey targeting senior managers of four-star hotels located in Spain was carried out. The data of the study show that the more market-oriented hotels know their customers and competitors better and that they are more effective at coordinating their actions. This in turn generates a positive and direct effect on customer satisfaction, on the value added for them and on the perceived image of the hotel. Also, perceptions about technological turbulence positively affect the adoption of the MO philosophy and, therefore, its consequences in terms of company performance. Finally, the effects of MO on results would be overvalued if the perception of the impact of the crisis is not taken into account.     

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.     

Modelling growth and revenue for Swedish hotel establishments

This paper provides first estimates of the determinants of output growth of Swedish hotels based on establishment data. Growth of overnight stays is modelled as a function of initial size, age, type of accommodation, location and hotel prices measured as average revenues per guest nights. The empirical model accounts for potential endogeneity of hotel prices through the two-stage least absolute deviation model (2SLAD) and the instrumental variable quantile regression method. 2SLAD estimates show a positive and significant relationship between hotel prices and subsequent growth. The relationship is nonlinear with a decreasing impact as the price level increases. Growth of establishments is significantly higher for smaller and younger hotels. An important result is that city hotels, in comparison to tourist and other hotels – which are mainly located outside urban areas (in the mountains and at the sea) – exhibit significantly higher growth rates with a gap between 2.2 and 3.4 percentage points. Furthermore, the positive impact of hotel prices on growth is larger for high-growth establishments. Accommodation prices significantly decrease with the number of local competitors with a non-linear form and increase with size. City hotels and accommodation in the capital city have the highest revenues per guest night.     

This hotel is family-run! Enabling positive consumer response via perceived hospitableness

Family-run businesses are key players in the hotel industry and provide accommodations in many tourism regions such as the Austrian Alps. To date, research has failed to see the family firm status as a source of competitive advantage for the hospitality industry, despite often being used in practice to attract customers. Through the theoretical lens of signaling theory, this study therefore conducted experiments using fictitious hotel websites with participants from a German online panel (Austria’s largest incoming market) to investigate the effectiveness of family firm brand signals. The results confirm positive effects of communicating the family firm image on consumer response such as word-of-mouth, willingness to pay a price premium, and booking intention. We highlight that this effect is explained by perceived hospitableness. As such, we demonstrate that hotels can capitalize on their unique status by communicating their family firm image.     

A model that connects information technology and hotel performance

Despite vast investments in IT, there is scant research and empirical data that connects, in depth, IT with firm performance in the hospitality industry. However, the literature does show partial evidence and examples of particular technologies. After an extensive literature review, we posit four global paths through which IT can impact hotel performance and, for each one, the precise mechanisms that cause these influences. These four proposals are further developed and refined using in-depth interviews with a group of 30 managers of different areas from several hotels. A final comprehensive model that shows the specific routes that IT can follow in order to improve hotel organizational performance is presented. This model can be taken as a frame of reference by academics and can also be used by both practitioners and IT producers to assess particular IT options.     

Branding destinations versus branding hotels in a gaming destination—Examining the nature and significance of co-branding effects in the case study of Macao

This paper considers destinations and hotels operating within a gaming destination as co-branded experiential choice products. Specifically, it examines the overall and individual effects of visitors’ perceived brand equity of a gaming destination and their perceived brand equity of various hotels, including ‘flagship’ or branded hotels, in terms of influencing their reaction to a hypothetical brand loyalty scenario in which their intended and preferred hotel was unable to provide accommodation thus forcing them to either: (1) choose an alternate hotel in the destination and continue with the visit, (2) cancel the trip and choose another destination to visit, or (3) insist on staying at the preferred hotel but postpone the trip at another period. The study's expectation is that visitors’ response to such a hypothetical scenario is moderated by the relative influence of their perceived brand equity for the destination and for hotels. The emergent gaming destination of Macao is used as a case study for this purpose. The study's findings indicate that visitors’ overall destination brand equity perceptions—rather than hotel brand equity perceptions—is robustly significant when it comes to influencing visitors’ response to the brand loyalty scenario. Results of the study indicate several relevant implications for destination management organizations (DMOs) seeking to enhance their destination-branding efforts and for hotel operators, especially internationally branded hotel chains.     

Customer accounting and marketing performance measures in the hotel industry: Evidence from Australia

Increasingly competitive environments have focused hotel managers’ attention on gaining competitive advantage by maximising the potential of their customer base. This paper provides the results of a study of the use and antecedents of customer accounting and marketing performance measures in the Australian hotel industry. The findings of a survey of 165 Australian hotel managers provide evidence that large, highly market orientated hotels with a decentralised structure use more customer focused accounting and marketing practices. Additionally, support was also found for a significant positive relationship between market orientation and a prospector-type strategy, as well as market orientation and both financial and non-financial performance.     

When quality signals talk: Evidence from the Turin hotel industry

This study analyzes the relationship between quality signals and price setting through the application of hedonic price functions. The model proposals also include variables relating to land use policies and tourism development strategies. A simultaneous equation model endogenously estimates quality signals. This method is appropriate for analyzing emerging urban destinations, as characterized by the presence of an expanding hotel industry. The results are based on a dataset of 145 hotels in Turin, Italy. The empirical findings reveal that reputation-based quality signals help explain tariff levels. Price proposals also include a premium for quality assured hotels, defining some limits of the current hotel classification system. The empirical evidence has significant marketing implications for the hospitality industry’s competitiveness, since the results clarify the impact of quality signals on price level.