Evaluating wind-following and ecosystem services for hydroelectric dams in PJM

Hydropower can provide inexpensive, flexible fill-in power to compensate for intermittent renewable generation. Policies for hydropower dams maintain multiple services beyond electric generation, including environmental protection, flood control and recreation. We model the decision of a hydroelectric generator to shift some of its power production capacity away from the day-ahead energy market into a “wind-following” service to smooth the intermittent production of wind turbines. Offering such a service imposes both private and social opportunity costs. Since fluctuations in wind energy output are not perfectly correlated with day-ahead energy prices, a wind-following service will necessarily affect generator revenues. Seasonal wind patterns produce conflicts with the goal of managing rivers for “ecosystem services”—the maintenance or enhancement of downstream ecosystems. We illustrate our decision model using the Kerr Dam in PJM’s territory in North Carolina. We simulate the operation of Kerr Dam over a three-year period that features hydrologic variability from normal water years to extreme drought conditions. We use an optimization framework to estimate reservation prices for Kerr Dam offering wind-following services in the PJM market. Wind-following may be profitable for Kerr Dam at low capacity levels during some time periods if ecosystems services are neglected and if side payments, or reserves-type payments, are provided. Wind-following with ecosystem services yields revenue losses that typically cannot be recovered with reserves market payments. Water release patterns are inconsistent with ecosystem-services goals when Kerr Dam dedicates significant capacity to wind-following, particularly in drought years.     

Sustainable development and hospitality education: employers’ perspectives on the relevance for graduate employability

This paper examines hospitality employers’ perspectives of sustainable development (SD) and the implications for hospitality education, particularly graduate employability. An exploratory approach is used in this research where semi-structured interviews were conducted with employers of hospitality graduates. The results established that respondents had mixed understandings of the meaning and relevance of SD. These employers are, however, gradually recognising the value of sustainability for their business. Though it is not currently a priority in terms of a critical employability skill specifically for the hotel sector, related industries seem more mindful of the implications of sustainability credentials. Thus, hospitality educators need to take appropriate actions in subject-specific areas where SD is critical to employment opportunities, creating more industry-ready graduates who are also globally aware citizens.     

Demand for different types of public goods: evidence from Nigeria

Preferences of Nigerian households vary across different types of public goods. For example, some prefer roads while others favor education even after controlling for the existing supply of these goods. What explains this variation? We argue that the perceived distributional consequences of specific public goods differ conditional on the personal characteristics of households. In particular, households demand the type of public good that (a) increases the utility of assets they already own and (b) resonates with their past experiences involving the lack of particular public goods. We test our argument with data on 123,000 Nigerian households. We find strong evidence for our argument across six types of public goods.     

Bonus gift card programs: a methodology to measure the impact on revenue and profit

Many retailers are now offering bonus gift cards to entice customers to buy more regular gift cards. The most common offers are a $5 bonus card with $25 worth of gift card purchases or a $10 bonus card with $50 worth of purchases. Unlike regular gift cards, bonus gift cards are not paid for by other customers. Bonus cards provide $5 or $10 of free credit to a customer at the firm’s expense. Most retailers do not understand the potential for cannibalization of revenue and profit when gift card redeemers use a bonus card for a purchase they would have made without it. Nor do they know what proportion of redeemers represent these cannibalized sales versus the proportion of redeemers that represent incremental purchases. We use an in-market study with a large national restaurant chain to demonstrate a methodology and model to properly evaluate the effect of bonus gift card programs on revenue and profit. We found that although bonus gift cards provide incremental revenue, they can significantly reduce profit particularly in certain retail segments. For those who wish to implement a bonus card program, we provide suggestions to maximize the potential for success.     

Mobilizing knowledge: determining key elements for success and pitfalls in developing community-based tourism

Community-based tourism (CBT) has often been cited as an alternative to mass tourism and an approach for tourism to become more sustainable. If developed well, CBT can become a poverty alleviation mechanism and a way to access improvements in quality of life, providing empowerment and greater economic benefit to individuals in local communities. Despite the plethora of literature on CBT and evaluation of models, there is little analysis of the facilitators and barriers to achieving it. Through the use of case studies in both academic and grey literature, this paper serves as an instructive review of the CBT literature to synthesize the key elements of success and the challenges.     

Status demotion in hierarchical loyalty programs: effects of payment source

Hierarchical loyalty programs are being operated currently by many firms to improve customer relationships. While past work has demonstrated the negative effects of status demotion in such programs, research on how these effects may vary across different customer group based on payment source is almost nonexistent. This paper examines the moderating role of payment source (‘own money’ versus ‘others money’) on the effects of status demotion on customer attitudes and behavior in hierarchical loyalty programs. Analysis of data collected from members of airline loyalty programs show that the negative effects of status demotion on customer attitudes, loyalty intentions, and share-of-wallet are stronger for demoted ‘own money’ customers than for demoted ‘others money’ customers. The study provides a deeper insight about the effects of status demotion and points out that firms could possibly be endangering the loyalty of many potentially valuable customers, in particular among the ‘own money’ customer group.     

The Role of Private Label Brands in Enhancing Service Satisfaction in the Hotel Industry: Comparing Luxury and Boutique Hotels

ABSTRACT

This research proposes private label branding as a strategy that can have a positive effect on guest satisfaction and loyalty in hotels that cater to travelers seeking a special hotel experience. We test this using a sample of guests in two hotels: a five-star luxury hotel (N = 225) and a boutique hotel (N = 101). Findings show that in the luxury hotel but not the boutique hotel, perception of a private label had a direct impact on loyalty, and an indirect impact on loyalty through its effect on guest satisfaction. The theoretical implications and recommendations for hoteliers based on the findings are discussed.