Importance of F&B operation in luxury hotels: the case of Asia versus the US
International Journal of Contemporary Hospitality Management
ISSN: 0959-6119
Article publication date: 27 November 2020
Issue publication date: 22 January 2021
Abstract
Purpose
This paper aims to understand the effect of food and beverage (F&B) services on the operating performance of luxury hotels and to identify the heterogeneous effects of the luxury hotels’ F&B operation on the business performance between Asia and the USA.
Design/methodology/approach
Operating performance of luxury hotels in Asia (37 hotels), including Japan, Singapore, South Korea and Hong Kong and in the USA (72 hotels), including New York, California, Florida, Illinois and Texas was collected from STR reports. This study applied generalized estimating equations models to reach the conclusions.
Findings
The emphasis on F&B services exhibits a significant positive effect on the operating performance of luxury hotels in Asia. The occupancy rate and gross operating profit per available room of luxury hotels in Asia have improved with the investment in F&B offerings. Therefore, a distinctive F&B offering should be considered as one of the main products and services rather than a supplementary service in Asia. While devotion to F&B services lacks a significant positive effect on luxury hotels in the USA.
Originality/value
This study is the first effort to identify the importance of luxury hotels’ F&B operation for the overall hotel performance in Asia and the USA by focusing on the entire industry’s operating information.
Keywords
Acknowledgements
The authors thank STR for providing the data used for the current study.
Corrigendum: It has come to the attention of the publisher that the article Mun, S.G., Woo, L. and Seo, K. (2020), “Importance of F&B operation in luxury hotels: the case of Asia versus the US”, International Journal of Contemporary Hospitality Management, Vol. 33 No. 1, pp. 125-144. https://doi.org/10.1108/IJCHM-06-2020-0546, ommitted the second affiliation of Kwanglim Seo. Kwanglim Seo's second affiliation is School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong SAR, China. The authors sincerely apologise for the error.
Citation
Mun, S.G., Woo, L. and Seo, K. (2021), "Importance of F&B operation in luxury hotels: the case of Asia versus the US", International Journal of Contemporary Hospitality Management, Vol. 33 No. 1, pp. 125-144. https://doi.org/10.1108/IJCHM-06-2020-0546
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited