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Book part
Publication date: 12 October 2018

Amelia Tomašević

This chapter treats the luxury hotel concept and practice and its recent trends in the tourism industry. This niche market is expanding rapidly with changing global income…

Abstract

This chapter treats the luxury hotel concept and practice and its recent trends in the tourism industry. This niche market is expanding rapidly with changing global income structures and increasing complexity of the hospitality sector. Its clientele comprises quality-seeking, prestige-striving, and high-spending customers. The chapter first explores the concept of luxury in relation to hotels. It further groups various associated assets into tangibles and intangibles to discuss their recent trends across the world. It is suggested that companies and destinations active in the luxury hotel market or contemplating entry take these trends into account to gain and/or maintain competitiveness.

Details

Quality Services and Experiences in Hospitality and Tourism
Type: Book
ISBN: 978-1-78756-384-1

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Article
Publication date: 9 October 2018

Juhee Kang

The purpose of this paper is to identify the antecedents and consequences of romantic brand love in the luxury hotel context.

Abstract

Purpose

The purpose of this paper is to identify the antecedents and consequences of romantic brand love in the luxury hotel context.

Design/methodology/approach

Data were collected from guests who had stayed at a luxury hotel within the past year and analyzed using structural equation modeling.

Findings

The findings indicate that uniqueness and hedonic values are a prerequisite of evoking closeness and passionate feelings toward hotel brands, resulting in guests’ advocacy and willingness to pay a premium price.

Practical implications

This study provides practical implications for luxury hotel marketers by introducing a new angle to understand brand love and suggesting desirable post-consumption behaviors through creating romantic love relationships between guests and hotel brands.

Originality/value

Research on the multidimensional aspects of luxury value is limited. This study proposes a conceptual model to investigate which luxury values enable guests to fall in love with brands and influence future behavior decisions and identifies opportunities for managerial benefits relating to consumers who are not traditional or frequent visitors to hotels.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 9
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 12 August 2019

Sonia Bharwani, David Mathews and Amarpreet Singh Ghura

This study aims to explore the reasons for the rise of independent, stand-alone restaurants and ascertains the benefits of outsourcing food and beverage (F&B) in luxury

Abstract

Purpose

This study aims to explore the reasons for the rise of independent, stand-alone restaurants and ascertains the benefits of outsourcing food and beverage (F&B) in luxury hotels in India from the perspectives of the strategic partners involved in such an alliance. The study also proposes different formats for F&B outsourcing in luxury hotels.

Design/methodology/approach

An exploratory study was carried out by collecting primary data from 16 Hotel General Managers and F&B operations experts through qualitative, semi-structured, personal and in-depth interviews. NVivo12 software was used to carry out a qualitative thematic analysis of the data. The primary data collected were triangulated with secondary data gathered through literature review of academic papers, industry reports and studies on the trends of restaurants in luxury hotels being outsourced.

Findings

The study focusses on the antecedents of the rise of stand-alone restaurants in the Indian hospitality industry. To combat the competitive disruption arising because of this trend, the study posits the business model innovation of outsourcing F&B operations in luxury hotels.

Practical implications

The benefits of a strategic alliance from the perspective of both parties – the luxury hotel and Michelin-star chef or branded/marquee restaurant – are elucidated. Further, three broad formats, which can be adopted for speciality restaurant outsourcing are also proposed. Practitioners, researchers and educationists in the hospitality industry would find the implications of this study useful in the context of the present customer-centric business environment where hotels are constantly striving to meet the exponentially rising bar of guest expectations in an increasingly globalised milieu.

Originality/value

The study proposes a preliminary road map for internationalisation of F&B operations through the business model innovation of outsourcing operations of in-house specialty restaurants by luxury hotels in the Indian context.

Details

Worldwide Hospitality and Tourism Themes, vol. 11 no. 4
Type: Research Article
ISSN: 1755-4217

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Article
Publication date: 1 June 2015

Carol Lu, Celine Berchoux, Michael W. Marek and Brendan Chen

The purpose of this paper was to determine whether luxury hotel managers and customers have the same understanding of service quality and satisfaction and whether there is…

Abstract

Purpose

The purpose of this paper was to determine whether luxury hotel managers and customers have the same understanding of service quality and satisfaction and whether there is a disparity between services offered by luxury hotels and the way customers actually experience them.

Design/methodology/approach

This paper used interviews with managers and guests of 5-Star hotels in Taiwan and qualitative analysis to understand definitions and perceptions of luxury, service quality and satisfaction.

Findings

The major findings of the study were that: there were no fundamental disconnects in the respective understandings of managers and guests; however, the two groups used different language to describe luxury, service quality and satisfaction; the managers evaluated satisfaction in terms of services provided, but the guests conceptualized satisfaction in terms of value received for the price of lodging; and luxury, service quality and satisfaction were closely related in the minds of the managers and guests and were not independent constructs.

Research limitations/implications

Recommendations are made based on marketing communications theory, that is all factors identified in this study can be considered to be part of the brand identity of the hotel; local culture can introduce variables that may be outside the scope of international standards; and information on local expectations and preferences can inform advertising and public relations efforts of the hotel.

Originality/value

This study is significant because little research into luxury hotel customer satisfaction has been done using qualitative methodology, which provides a richer understanding of the experiences of the participants than can quantitative design.

Details

International Journal of Culture, Tourism and Hospitality Research, vol. 9 no. 2
Type: Research Article
ISSN: 1750-6182

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Article
Publication date: 19 March 2018

Tracy Harkison, Nigel Hemmington and Kenneth F. Hyde

The purpose of this paper is to explore how the luxury accommodation experience is created by investigating the perceptions of the three main participant groups …

Abstract

Purpose

The purpose of this paper is to explore how the luxury accommodation experience is created by investigating the perceptions of the three main participant groups – managers, employees and guests – using case studies from New Zealand.

Design/methodology/approach

An interpretivist case-study methodology was used. Eighty-one participants were interviewed (27 managers, 27 employees and 27 guests) from six luxury properties. Thematic analysis was conducted to inform the results.

Findings

The key themes identified in creating the luxury accommodation experience are: setting the stage; the ethos of the property; performances of the actors; and co-creation between the participants. Using the themes identified, a conceptual model of the creation of the luxury accommodation experience has been formulated.

Practical implications

The conceptual model can be used to assist managers to deliver a more positive and memorable experience of their properties. Strategies to enhance the luxury accommodation experience include: training; standards of procedure; staff incentives; and the use of effective communication tools.

Originality/value

This study identified the three alternative perspectives of managers, employees and guests regarding how the luxury accommodation experience is created. The luxury accommodation sector contributes to the economies of a number of nations and therefore it is important to highlight how it can be maintained and improved.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 3
Type: Research Article
ISSN: 0959-6119

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Book part
Publication date: 12 October 2018

Ruiyu Feng, Yao-Chin Wang and Bill Ryan

This chapter conceptualizes a framework that can be applied to examine the service experiences of business tourists at luxury hotels. A synthesized literature review…

Abstract

This chapter conceptualizes a framework that can be applied to examine the service experiences of business tourists at luxury hotels. A synthesized literature review results in the identification of three service constructs − surprise, recovery, and sweetness − that constitute the service experiences. In the development of five propositions and in views of emotional appreciation and reciprocity, the chapter posits that emotional value from these three constructs of service experiences can enhance business tourists’ attitude of gratitude and consequently their willingness to pay a price premium. The proposed conceptual framework extends the three service constructs to, and integrates them with, a value–attitude–behavior model.

Details

Quality Services and Experiences in Hospitality and Tourism
Type: Book
ISBN: 978-1-78756-384-1

Keywords

Content available
Article
Publication date: 12 June 2019

Joern Buehring and Barry O’Mahony

Managing the customer experience is critical for hospitality businesses because business viability can depend on the delivery of valued guest experiences. The industry…

Abstract

Purpose

Managing the customer experience is critical for hospitality businesses because business viability can depend on the delivery of valued guest experiences. The industry lacks research that can assist in developing the specific measures and tools to design experiences that meet guests’ expectations. The purpose of this paper is to identify the constructs and generators of memorable experiences (ME) from the perspectives of luxury hotel hosts and guests.

Design/methodology/approach

Data were collected in two sequential phases. In the first phase, non-probability sampling was used to engage luxury hotel experts in a Delphi study. This was followed by in-depth, face-to-face interviews with frequently staying luxury hotel guests.

Findings

In total, 40 value generating factors emerged from the host data. These were validated with guests; however, guests also revealed a further 19 value generating factors that develop ME. These factors were clustered into five constructs and formulated into a ME framework that presents the constructs and supporting variables that can facilitate memorable luxury hotel experiences.

Research limitations/implications

Guests were asked to recall previous luxury hotel experiences and it is acknowledged that recall of past experiences can be inaccurate. The sample size was also relatively small.

Practical implications

Critical, value generating factors were identified that hotel operators can employ to actively engage luxury hotel guests and ensure their experiences are memorable.

Originality/value

The study extends our understanding of the constructs and variables that contribute to the development of ME identifying the importance of sensory generators and the role of authenticity and destination specific culture in creating unique, ME. These key drivers can be used to increase guest satisfaction, loyalty and repeat visitation.

Details

Journal of Hospitality and Tourism Insights, vol. 2 no. 4
Type: Research Article
ISSN: 2514-9792

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Article
Publication date: 22 March 2019

Norman Peng and Annie Chen

Luxury consumption research has focused more on the consumers of goods than services, despite the trend that consumers are more interested in luxury services, such as…

Abstract

Purpose

Luxury consumption research has focused more on the consumers of goods than services, despite the trend that consumers are more interested in luxury services, such as luxury hospitality services, than ever before. Additionally, the results regarding the factors that can influence consumers’ luxury service product purchase intentions can be further tested. The purpose of this research is to examine the factors that contribute to consumers’ luxury hotel stay repurchase intentions, to further develop the luxury hospitality service consumption literature and to identify implications for practitioners to consider.

Design/methodology/approach

To contribute to the luxury consumption literature, this research incorporates a “luxury hotel brand attachment” variable into a luxury consumption value model to examine consumers’ intentions to repurchase luxury hotel stays when traveling for tourism purposes. The authors draw on a survey of over 450 luxury hotel consumers.

Findings

The findings confirm that luxury hotels’ perceived functional value, hedonic value and symbolic/expressive value affect consumers’ emotions, which in turn affects their luxury hotel attachment and repurchase intentions. In addition, luxury hotel attachment moderates the influence of emotion on repurchase intention.

Design/methodology/approach

Luxury hotels need to review their customers’ emotions during their stay and their attachment with the hotel. These factors can influence customers’ repurchase intentions. To stimulate customers’ emotions, luxury hotels need to offer functional value (e.g. attentive service staff), hedonic/expressive value (e.g. position as a form of self-indulgence) and symbolic value (e.g. conspicuous lobby). However, managers should know that having superior perceived functional value does not influence customers’ repurchase intentions directly. These characteristics may be commonly shared by most luxury hotels. Furthermore, they do not need to be too worried about providing financial value (e.g. value-for-money).

Originality/value

This study conceptualizes tourists’ luxury hotel stay intentions by examining the influence of perceived luxury value (i.e. functional value, financial value, hedonic value and symbolic/expressive value), tourists’ emotions and luxury hotel brand attachment. In addition, this research explores how luxury hotel brand attachment can moderate the relationship between consumers’ emotions and their repurchase intentions. Several implications of the study are identified, and avenues for future research are suggested.

Details

International Journal of Contemporary Hospitality Management, vol. 31 no. 3
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 9 April 2018

Ben Wu and Wan Yang

In the past decade, the luxury hotel industry in China has experienced rapid growth. To date, few scholars have investigated what consumers value about their experiences…

Abstract

Purpose

In the past decade, the luxury hotel industry in China has experienced rapid growth. To date, few scholars have investigated what consumers value about their experiences in luxury hotels generally, let alone specifically in the Chinese context. As a result, little is known about what Chinese consumers value in luxury hotel services. To bridge this gap, this paper aims to (1) develop a five-factor luxury hotel value framework from a value co-creation perspective; and (2) assess the relationship between these value dimensions and Chinese consumers’ intentions to stay in luxury hotels.

Design/methodology/approach

In total, 492 Chinese luxury hotels consumers participated in the study. A confirmatory factor analysis was used to validate the proposed measurement model, and a hierarchical linear regression was used to test the relationship between luxury hotel value and purchase intentions.

Findings

The authors assessed five dimensions of luxury hotel value in the current study: utilitarian value, symbolic value, hedonic value, relational value and financial value. The regression results indicate that for Chinese luxury consumers, hedonic value is the most important predictor of luxury hotel purchase intentions, followed by financial value and utilitarian value. Interestingly, symbolic value and relational value do not significantly influence Chinese consumers’ luxury hotel purchase intentions.

Practical implications

Luxury hoteliers in China can use the value framework when making decisions about market segmentation and brand positioning and to gain a deeper understanding of what motivates target consumers’ purchase intentions. They can also use such knowledge to tailor their product offerings to the preferences of target consumers.

Originality/value

The current study is the first empirical test of a luxury hotel value framework from a value co-creation perspective in the Chinese market. Taking Chinese luxury consumers’ unique characteristics into consideration, the authors further investigate the relationships between various dimensions of luxury hotel value and Chinese consumers’ purchase intentions.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 4
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 27 November 2020

Sung Gyun Mun, Linda Woo and Kwanglim Seo

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…

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.

Details

International Journal of Contemporary Hospitality Management, vol. 33 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

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