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The power of e-commerce: Does e-commerce enhance the impact of loyalty programs on hotel operating performance?

Nan Hua (University of Central Florida, Orlando, Florida, USA)
Stephen Hight (Cecil B. Day School of Hospitality Administration, University of Central Florida, Orlando, Florida, USA)
Wei Wei (Rosen College of Hospitality Management, University of Central Florida, Orlando, Florida, USA)
Ahmet Bulent Ozturk (Rosen College of Hospitality Management, University of Central Florida, Orlando, Florida, USA)
Xinyuan (Roy) Zhao (Business School, Sun Yat-sen University, Guangzhou, Guangdong, China)
Khaldoon Nusair (Sultan Qaboos University, Muscat, Oman)
Agnes DeFranco (Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, Houston, Texas, USA)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Article publication date: 11 April 2019

Issue publication date: 30 April 2019

2555

Abstract

Purpose

This paper aims to offer empirical insights on how investing in e-commerce capabilities affects the relationship between loyalty programs and hotel operating performance so as to aid in identifying proper resource allocation strategies.

Design/methodology/approach

This study extended the model in Hua et al. (2015) by testing the interaction of e-commerce and loyalty programs.

Findings

The findings illustrate that proper allocation of company financial resources to e-commerce initiatives can help improve the impact of loyalty programs on hotel operating performance.

Practical implications

The results of this study illustrate that hotel performance can be improved by the synergy between loyalty program and e-commerce initiatives. Thus, hotel managers and owners can use results from this study to improve the efficiency of their asset allocation strategies, with five practical implications offered.

Originality/value

Theoretically, this study adapted and extended an integrative model of hotel operating performance (Hua et al., 2015) by identifying critical factors that elucidate the variance in firm performance. In addition, the moderating role of e-commerce provides a new conceptualization of information technology. Practically, this study makes several important contributions as well.

Keywords

Citation

Hua, N., Hight, S., Wei, W., Ozturk, A.B., Zhao, X.(R)., Nusair, K. and DeFranco, A. (2019), "The power of e-commerce: Does e-commerce enhance the impact of loyalty programs on hotel operating performance?", International Journal of Contemporary Hospitality Management, Vol. 31 No. 4, pp. 1906-1923. https://doi.org/10.1108/IJCHM-02-2018-0168

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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