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Article
Publication date: 8 May 2017

Sandy C. Chen, Carola Raab and Sarah Tanford

This study aims to report the results of a survey of diners’ behavior during production and consumption of dining services with three objectives. The first objective is to create…

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Abstract

Purpose

This study aims to report the results of a survey of diners’ behavior during production and consumption of dining services with three objectives. The first objective is to create customer segments that represent distinct patterns of customer participation in hospitality service encounters. The second objective is to profile these identified customer segments in terms of demographics, attitudes and behaviors. The third objective is to evaluate the relationship between customer participation segments and service outcomes.

Design/methodology/approach

Data were collected through an online survey of American casual dining customers. The data were analyzed using principal components factor analysis, cluster analysis on the factor scores, discriminant analysis that validated the group differences among clusters and multivariate analysis of variance on the cluster variables to determine the source of differences between groups.

Findings

The evidence showed that restaurant customers can be segmented into meaningful groups according to their reported behaviors and that level of participation is related to perceived service outcomes.

Practical implications

The findings suggest that service providers can use customer participation segments to understand those customers’ service needs and wants. They can then design service strategies tailored to the needs of target customer groups.

Originality/value

This study is the first to identify distinct segments based on hospitality customers’ roles and behaviors in service delivery. This study makes a significant contribution to the hospitality marketing literature by advancing the trend to improve service quality through a non-traditional approach, that is, by building partnerships with customers.

Details

International Journal of Contemporary Hospitality Management, vol. 29 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 27 June 2023

Fatemeh Binesh, Amanda Mapel Belarmino, Jean-Pierre van der Rest, Ashok K. Singh and Carola Raab

This study aims to propose a risk-induced game theoretic forecasting model to predict average daily rate (ADR) under COVID-19, using an advanced recurrent neural network.

Abstract

Purpose

This study aims to propose a risk-induced game theoretic forecasting model to predict average daily rate (ADR) under COVID-19, using an advanced recurrent neural network.

Design/methodology/approach

Using three data sets from upper-midscale hotels in three locations (i.e. urban, interstate and suburb), from January 1, 2018, to August 31, 2020, three long-term, short-term memory (LSTM) models were evaluated against five traditional forecasting models.

Findings

The models proposed in this study outperform traditional methods, such that the simplest LSTM model is more accurate than most of the benchmark models in two of the three tested hotels. In particular, the results show that traditional methods are inefficient in hotels with rapid fluctuations of demand and ADR, as observed during the pandemic. In contrast, LSTM models perform more accurately for these hotels.

Research limitations/implications

This study is limited by its use of American data and data from midscale hotels as well as only predicting ADR.

Practical implications

This study produced a reliable, accurate forecasting model considering risk and competitor behavior.

Theoretical implications

This paper extends the application of game theory principles to ADR forecasting and combines it with the concept of risk for forecasting during uncertain times.

Originality/value

This study is the first study, to the best of the authors’ knowledge, to use actual hotel data from the COVID-19 pandemic to determine an appropriate neural network forecasting method for times of uncertainty. The application of Shapley value and operational risk obtained a game-theoretic property-level model, which fits best.

Details

International Journal of Contemporary Hospitality Management, vol. 36 no. 4
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 12 February 2018

Dina Marie V. Zemke, Carola Raab and Kaiyang Wu

The purpose of this paper is to test the relationships between a hotel’s design quality and the property’s business performance.

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Abstract

Purpose

The purpose of this paper is to test the relationships between a hotel’s design quality and the property’s business performance.

Design/methodology/approach

Hotel guests’ assessments of the design quality of hotels that they recently visited are tested using the design quality indicator (DQI). Business performance is measured using indexed values for each property’s occupancy, average daily rate (ADR) and revenue per available room (RevPAR). The data are analyzed using exploratory factor analysis and a variation of a hedonic pricing model.

Findings

Factor analysis reduced the DQI instrument to 19 measurement items. Factors that measure navigability and signage positively impact occupancy index. Factors that measure flexible space usage negatively impact the RevPAR and ADR indices. Factors that reflect aesthetic constructs, including Urban & Social Integration and Character & Form, positively impact the RevPAR and ADR indices.

Research limitations/implications

The study examines a nationwide sample of guests from two full-service brands of a single multi-brand hotel company. The study provides a parsimonious, validated design measurement instrument and a revised hedonic pricing analysis.

Practical implications

Hoteliers can use this technique to assist with resource allocation decisions. Aesthetic elements, including the building’s Urban & Social Integration with its surroundings and its Character & Form, lead to higher ADR and RevPAR performance. Managers should ensure a coherent layout and good signage program to drive occupancy.

Originality/value

This study offers a technique to measure design quality and a new method of performing a hedonic pricing analysis.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 2
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 11 September 2018

Dina Marie Zemke, Yun Ying Zhong and Carola Raab

Firms that serve customers in the service environment rely on a well-designed servicescape. This is particularly true in the hotel industry, where the hotel’s design is an…

Abstract

Purpose

Firms that serve customers in the service environment rely on a well-designed servicescape. This is particularly true in the hotel industry, where the hotel’s design is an important part of the product mix. However, despite design’s importance, there is no common instrument available to measure hotel design quality. The purpose of this paper is to present a quantitative method, the Design Quality Indicator, to measure guests’ evaluations of hotel design quality.

Design/methodology/approach

Nearly 5,000 guests of two full-service hotel brands were surveyed soon after a hotel stay (within two weeks of check-out). The DQI’s factor structure is tested using principle components analysis and confirmatory factor analysis to improve the reliability, validity and parsimony of the instrument.

Findings

The study yields a DQI instrument that is reduced from 92 to 41 measurement items, with good reliability and validity, enabling more efficient data collection and analysis.

Research limitations/implications

This study only examines guests’ assessments of two full-service hotel brands. The instrument can be used to explore design’s relationship with numerous outcome variables, such as satisfaction, loyalty, and repatronage intentions, as well as property performance outcomes.

Practical implications

The methods demonstrated can be used by hotel owners and operators to inform resource allocation decisions, particularly when planning for renovations.

Originality/value

This study provides a reliable, validated quantitative assessment of hotel design quality. It is also one of the few studies that elicits feedback about a guest’s actual hotel stay, rather than a hypothesized or simulated stay.

Details

Property Management, vol. 37 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 1 February 2022

Wenjia Han, Wen Jiang, Jason Tang, Carola Raab and Anjala Krishen

This study aims to examine whether indirect customer-to-customer interactions (CCI) affect consumers’ behavioral intentions and how that effect is generated. It also explores the…

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Abstract

Purpose

This study aims to examine whether indirect customer-to-customer interactions (CCI) affect consumers’ behavioral intentions and how that effect is generated. It also explores the effect of dining experience on customer behavioral intentions and how that effect varies by party type.

Design/methodology/approach

The research consists of an experimental survey-based study of n = 491 real-world consumers from a marketing research panel. Structural equation models are analyzed to examine hypothesized relationships.

Findings

Indirect CCIs significantly affect all five dimensions of experiential value. Food and beverage (F&B) excellence, aesthetics and service excellence positively affect customer revisit intentions and word-of-mouth intentions via restaurant image. Furthermore, party type moderates the effect of aesthetics on behavioral intentions so that the effect is significant for the social diner group only. Customer return on investment and playfulness show non-significant impacts on behavioral intentions.

Practical implications

Managers should be aware that indirect CCIs influence all aspects of the restaurant experience. Since F&B excellence, aesthetics and service excellence affect restaurant image and behavioral intentions, management can operationalize these elements of service. The impact of aesthetics differs by consumers’ party type, enabling management to create unique servicescapes based on their target customer segment.

Originality/value

The study pioneers an investigation of how indirect CCI is associated with behavioral intentions through the mediating effects of experiential value and restaurant image. It contributes to the literature by examining how the impact of diners’ experiences differs by party type.

Details

International Journal of Contemporary Hospitality Management, vol. 34 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 12 March 2018

Carola Raab, Orie Berezan, Natasa Christodoulidou, Lan Jiang and Stowe Shoemaker

Hoteliers are often frustrated by the significant fees charged for bookings by Online Travel Agents (OTAs), and they try to encourage more direct bookings that circumvent the OTA…

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Abstract

Purpose

Hoteliers are often frustrated by the significant fees charged for bookings by Online Travel Agents (OTAs), and they try to encourage more direct bookings that circumvent the OTA system. However, there are billions of dollars of room revenues generated by OTAs every year; and many companies in other industries sell their products through multiple channels. The purpose of this study is to investigate how hotel revenue managers can collaborate successfully with OTAs.

Design/methodology/approach

Qualitative methods are applied in this study, specifically focus groups and in-person interviews with market managers of a leading OTA. Content analysis is performed, using ATLASti 5, to discover emerging themes and categories from the transcripts.

Findings

This study highlights several OTA value propositions and how hotels can benefit from them. Additionally, the findings of this study reveal that effective two-way communication between OTAs and revenue managers is the key to success. An “optimization loop” is established, which specifies that partnership and collaboration between OTAs and hotels must occur in a circular sequence of communication, engagement, collaboration and strategy.

Research limitations/implications

A major limitation for this study is that interviews were conducted only with market managers, limiting the perspective to that of OTAs.

Originality/value

There is a paucity of research and dialogue discussing productive relationships between OTAs and hotel firms. Through in-depth in-person interviews with a diverse set of market managers from a leading OTA, this study brings to light an array of perspectives of what is required to optimize the OTA/hotelier relationship.

研究目的

酒店经营者常常受到在线旅行社(OTA)收取高额预订费用的困扰。酒店试图鼓励客人直接预订房间,绕过OTA程序。然而,每年OTA贡献仍有数以十亿计美金的订房收入; 其他行业的很多公司采用多渠道销售产品。本论文研究目的在于探索酒店经理人们如何能够成功地与OTA合作。

研究设计/方法/途径

本论文采用定性研究方法,主要以小组讨论和个人访谈的形式,与一家行业领先的OTA市场经理们进行深度访谈。本论文借用ATLASti 5 内容分析工具进行样本分析,总结出主题和分类。

研究结果

本论坛提出了多个OTA价值组成,以及酒店如何从中盈利。此外,本论文还指出了OTA和财务经理的有效双向交流的重要性。其中,需要建立“循环展开”(Optimization Loop),即OTA和酒店之间的合作交流需要建立在循环、有序、通畅、以及战略的基础上。

研究理论限制/意义

本论文一个主要的理论限制就是只采访了OTA的市场经理。

研究原创性/价值

理论上,关于OTA和酒店之间的战略合作的讨论,我们知之甚少。本论文采用与一家行业领先的OTA市场经理们的深入访谈,将这一合作关系进行积极讨论分析,提供一系列优化战略合作的方案和见解。

关键词

在线旅行社(OTA),酒店订房收入,合作关系,Expedia,市场经理,收入优化

Details

Journal of Hospitality and Tourism Technology, vol. 9 no. 1
Type: Research Article
ISSN: 1757-9880

Keywords

Article
Publication date: 16 April 2019

Jason Tang, Toni Repetti and Carola Raab

Restaurants typically have small profit margins and with the pressure of increasing food and labor costs, management is looking to revenue as a way to maintain and drive profits…

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Abstract

Purpose

Restaurants typically have small profit margins and with the pressure of increasing food and labor costs, management is looking to revenue as a way to maintain and drive profits. One technique to increase revenue is through revenue management practices, but management needs to be aware of their customers’ reactions to these practices prior to implementation. The paper aims to discuss this issue.

Design/methodology/approach

This study utilizes linear regression to determine the impact of select restaurant revenue management practices, customers’ familiarity with revenue management in general and in restaurants specifically, and customers’ demographics on perceived fairness of revenue management practices in casual and fine-dining restaurants.

Findings

Results indicate that customers find certain restaurant revenue management practices, such as charging premium prices on certain days of the week, fair in both casual and fine-dining restaurants, while others are not in either. Non-refundable reservation fees were found to be fair for fine-dining establishments only. Increased familiarity with restaurant revenue management was associated with higher perceptions of fairness for both casual and fine dining. Age was the only demographic studied that affected perceived fairness.

Originality/value

This study is the only known study to simultaneously evaluate the impact of price and duration restaurant revenue management techniques in combination with customer demographics and revenue management familiarity on consumer perceptions of fairness.

Details

Journal of Hospitality and Tourism Insights, vol. 2 no. 1
Type: Research Article
ISSN: 2514-9792

Keywords

Open Access
Article
Publication date: 3 July 2023

Tevfik Demirciftci, Amanda Belarmino and Carola Raab

The purpose of this study is to discover what attributes of casino buffet restaurants are the most important for customers’ willingness to pay (WTP).

Abstract

Purpose

The purpose of this study is to discover what attributes of casino buffet restaurants are the most important for customers’ willingness to pay (WTP).

Design/methodology/approach

Choice-based conjoint analysis was used in this study to test seven attributes: food, price/value, real price, service, atmosphere, the number of reviews and user-generated star ratings. Sawtooth Software was used to do the conjoint analysis, and a series of significance t-tests were run to determine the significance of each attribute on WTP with Statistical Package for the Social Sciences (SPSS).

Findings

Based on a survey of 483 respondents who had visited a buffet at a casino within the last two years, this study found that food is ranked as the most significant attribute of a casino buffet restaurant, followed by real price and service quality.

Originality/value

Theoretically, this work is the first to the authors’ knowledge to apply the antecedents of behavioral intention to willingness-to-pay for niche restaurants. Practically, the results of this study will help casino buffet operators as they re-open after COVID-19. Future studies could collect data in the post-pandemic environment and examine WTP at casino buffets in different geographic locations.

Details

International Hospitality Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2516-8142

Keywords

Article
Publication date: 11 July 2017

Orie Berezan, Anjala Selena Krishen, Sarah Tanford and Carola Raab

Because communication channels are inherently unique, they may differentially affect customers depending on their preferred communication style. Therefore, the information that…

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Abstract

Purpose

Because communication channels are inherently unique, they may differentially affect customers depending on their preferred communication style. Therefore, the information that firms provide might not have the intended effect, which is to increase program loyalty. The purpose of the current study is to present a marketing communication model that focuses on promoting program loyalty via self-congruity with the communication style of information channels.

Design/methodology/approach

The study introduces a self-congruity theory-based structural equation model, which is validated through an online sample of 575 respondents. The model begins with communication style and investigates its impact on satisfaction and loyalty in relation to hotel loyalty program members.

Findings

The model confirms that different forms of communication have varying levels of relevance to program loyalty. Communication style, information quality, self-congruity and satisfaction are all significant predictors of program loyalty.

Practical implications

Management can cultivate a community of loyal program members through the recognition of self-image congruence and its relationship with communication style, along with a solid understanding of target markets.

Originality/value

Despite the apparent influence that communication has on loyalty, very little research evaluates the typologies (firm-created and customer-created), dimensions (electronic and in-person) and attributes of information in terms of their effects on program loyalty.

Details

European Journal of Marketing, vol. 51 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 29 May 2009

Carola Raab, Karl Mayer, Stowe Shoemaker and Steve Ng

This paper aims to demonstrate how activity‐based pricing can be applied in a restaurant setting by combining the use of price sensitivity measurement with activity‐based costing.

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Abstract

Purpose

This paper aims to demonstrate how activity‐based pricing can be applied in a restaurant setting by combining the use of price sensitivity measurement with activity‐based costing.

Design/methodology/approach

Data are collected at a Hong Kong buffet restaurant, based on guests' price perceptions and the establishment's detailed cost structure. These data are analyzed by using price sensitivity measurement techniques and activity‐based costing methods, separately, and then combined to create an activity‐based pricing analysis of the restaurant's menu.

Findings

The use of activity‐based pricing techniques reveals that, although the guests are relatively price‐insensitive, drastic measures were needed to reduce costs for the restaurant to become profitable. Without the benefit of this study, the restaurant's management would not have been able to see clearly the nature of the challenges that they faced, since a single pricing study, or cost study, would have missed the combined cost and pricing effects that were captured by activity‐based pricing.

Research limitations/implications

Activity‐based pricing is shown to be a powerful technique that can be applied effectively in a restaurant. Utilizing this method allows a restaurant truly to understand both its operating cost structure and the price perceptions of it guests. Since this study involved only a single buffet restaurant, further research should be conducted to confirm that activity‐based pricing can also be applied in other restaurant and hospitality industry settings.

Practical implications

The findings from this study suggest that activity‐based pricing may be a viable way for restaurant managers to gain a better understanding of both their guests' price perceptions and the true cost structure of their restaurants. Use of activity‐based pricing allows restaurant managers to set price levels that cover all operating costs and profits, while still meeting guests' expectations of value.

Originality/value

This study is the first of its kind in the hospitality literature, since no prior research has applied activity‐based pricing in a hospitality research setting. This study represents an important new addition to the existing body of hospitality cost and pricing literature.

Details

International Journal of Contemporary Hospitality Management, vol. 21 no. 4
Type: Research Article
ISSN: 0959-6119

Keywords

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