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Article
Publication date: 12 September 2016

Giampaolo Viglia, Roberta Minazzi and Dimitrios Buhalis

Online consumer reviews have become increasingly important for consumer decision-making. One of the most prominent examples is the hotel industry where consumer reviews on…

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Abstract

Purpose

Online consumer reviews have become increasingly important for consumer decision-making. One of the most prominent examples is the hotel industry where consumer reviews on websites, such as Bookings.com, TripAdvisor and Venere.com, play a critical role in consumers’ choice of a hotel. There have been a number of recent studies analyzing various aspects of online reviews. The purpose of this paper is to investigate their effects in terms of hotel occupancy rates.

Design/methodology/approach

This paper measures through regression analysis the impact of three dimensions of consumer reviews (i.e. review score, review variance and review volume) on the occupancy rates of 346 hotels located in Rome, isolating a number of other factors that might also affect demand.

Findings

Review score is the dimension with the highest impact. The results suggest that after controlling for other variables, a one-point increase in the review score is associated to an increase in the occupancy rate by 7.5 percentage points. Regardless the review score, the number of reviews has a positive effect, but with decreasing returns, implying that the higher the number of reviews, the lower the beneficial effect in terms of occupancy rates is.

Practical implications

The findings quantify the strong association of online reviews to occupancy rates suggesting the use of appropriate reputational management systems to increase hotel occupancy and therefore performance.

Originality/value

A major contribution of this paper is its comprehensiveness in analyzing the relation between online consumer reviews and occupancy across a heterogeneous sample of hotels.

Details

International Journal of Contemporary Hospitality Management, vol. 28 no. 9
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 19 June 2017

Albert A. Barreda, Sandra Zubieta, Han Chen, Marina Cassilha and Yoshimasa Kageyama

This study aims to examine the impact of a mega-sporting event “2014 FIFA World Cup” on hotel pricing strategies and performance.

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Abstract

Purpose

This study aims to examine the impact of a mega-sporting event “2014 FIFA World Cup” on hotel pricing strategies and performance.

Design/methodology/approach

The present project examines the host regions’ response to the 2014 FIFA World Cup which was established by the variance in the main hotel key performance indexes: occupancy, average daily rate, revenue per available room (RevPAR) and supply. Using data gathered from STR, this research distinctly shows how the Brazilian host regions reacted to the World Cup.

Findings

Results suggest that the key performance indicators of Brazil’s lodging sector reacted differently to the World Cup. Although all hosting cities experienced significant RevPAR growth because of the increase in hotel room rates during the event, the supply and occupancy performed differed from each city.

Research limitations/implications

Research is limited to the case of hotel performance at the country level for mega-events. The study focused on the reaction of revenue managers in the Latin America context. Other contexts may generate different results.

Practical implications

The study helps revenue managers to examine how the FIFA World Cup travel demand affected pricing strategies and revenue management practices in the Brazilian hotel sector in areas undergoing seasonal growths in overnight tourism. This study serves to inform hoteliers and practitioners about revenue management pricing strategies to improve hotel performance during mega-sporting events.

Social implications

This study reveals that the benefits brought by a mega-event are not always translated into strong hotel revenue performance. This study highlights an important but understudied research area of revenue management pricing strategies and the effect of mega-sporting events in the hotel sector. This study contributes to the literature as one of the few investigations to benefit hotel pricing strategies and overall revenue performance.

Originality/value

This study is one of the few studies about exploring the reaction of revenue managers during the execution of a mega-sporting event. The value of the present study lies in the fact that the authors extend previous studies examining the impact of the most important sporting event in the hotel industry at the country-level perspective. This study serves to inform hoteliers and practitioners about revenue management pricing strategies to improve hotel performance during mega-sporting events.

Details

Tourism Review, vol. 72 no. 2
Type: Research Article
ISSN: 1660-5373

Keywords

Article
Publication date: 9 August 2011

Nor Rima Muhamad Ariff and Hilary Davies

Homeownership is considered both economically and socially beneficial for homeowners. However, in the collective living arrangement, reaching a consensus with regard to the…

2528

Abstract

Purpose

Homeownership is considered both economically and socially beneficial for homeowners. However, in the collective living arrangement, reaching a consensus with regard to the residential environment is difficult. The purpose of this paper is to identify factors that can reduce the conflict among the stakeholders in multi‐owner low‐cost housing in Malaysia.

Design/methodology/approach

This study tested three hypotheses examining whether the demographic and socio‐economic characteristics of owner‐occupants and occupancy rates affect owner‐occupants' satisfaction with stakeholders' relationships. Data were collected through questionnaires from owner‐occupants of multi‐owner low‐cost settlements in Selangor state. Data on housing characteristics were collected from chairpersons of the respective owners' organisations. The data were treated as parametric, and analysis of variance was conducted.

Findings

Four factors – number of children in the family, duration of residency, participation in social activities and participation in meetings – were found to affect owners‐occupants' satisfaction with the stakeholders' relationships. The significant effect of occupancy rates was also indicated.

Practical implications

The Management Corporations (MCs) should encourage social relationships among residents. To avoid conflict, the costs and benefits of participation must be balanced. Policy makers should take two key aspects seriously: owner‐managed strategy practices by the MCs and high rates of tenant‐residents. A mechanism should be identified for assisting the MCs in housing management and for protecting the benefits of homeownership for owner‐occupants.

Originality/value

Past studies on low‐income household settlements examined public housing or low‐income homeowners of single detached dwellings. This study adds to the existing body of knowledge by examining low‐income homeowners in multi‐owner low‐cost settlements.

Details

International Journal of Housing Markets and Analysis, vol. 4 no. 3
Type: Research Article
ISSN: 1753-8270

Keywords

Open Access
Article
Publication date: 4 May 2021

Bart Valks, Elizabeth Blokland, Catelijne Elissen, Iris van Loon, Danko Roozemond, Paul Uiterdijk, Monique Arkesteijn, Alexander Koutamanis and Alexandra Den Heijer

Across the world, many universities are dealing with a pressure on resources, caused by both organisational developments and ageing campuses. Space utilization studies have a…

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Abstract

Purpose

Across the world, many universities are dealing with a pressure on resources, caused by both organisational developments and ageing campuses. Space utilization studies have a strategic role, providing information on how space is being used, thereby informing decisions about the type and scale of facilities that are needed.

Design/methodology/approach

This study reports on the space use measurements conducted at TU Delft over the past five years, complemented by their use to make decisions about the university's real estate portfolio.

Findings

The education spaces of the university are found to perform well in terms of frequency rates and can be improved in terms of occupancy rates. The information helped to support short- and long-term decision-making. The study places of the university have a satisfactory occupancy in some types of study places, while in others there is room for improvement. More research is needed here to understand the relationship between space norms and space use.

Practical implications

The space utilization studies have supported discussions with the student council and decision makers on which interventions are required and which current facilities meet students' needs best.

Originality/value

Not much space utilisation studies are reported in the academic literature, and those that do have several limitations. This study may serve as a best practice for benchmarking by other universities and as evidence in other research for the planned and actual use of university facilities.

Details

Property Management, vol. 39 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 1 June 2000

Douglas Jeffrey and Robin R.D. Barden

Time series analysis of daily room occupancy rates in 91 hotels in England from January 1992 to December 1994 is used to analyse within‐week occupancy performance in the English…

5861

Abstract

Time series analysis of daily room occupancy rates in 91 hotels in England from January 1992 to December 1994 is used to analyse within‐week occupancy performance in the English hotel industry. Two major temporal patterns are identified: one features a midweek peak and Saturday sub‐peak; the other features a broader weekend peak and midweek trough. Both are represented in the occupancy profiles of most hotels. They are used to define a two‐dimensional daily occupancy performance space. The positioning of hotels within this space is explained in terms of location, market and other characteristics of the hotels, in a stepwise regression analysis. The implications of the findings are discussed in a marketing context.

Details

International Journal of Contemporary Hospitality Management, vol. 12 no. 3
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 2 May 2019

Sérgio Moro and Paulo Rita

National tourism offices worldwide implement marketing strategies to influence tourists’ choices. However, there is more than meets the eye when it comes to choosing a city as a…

Abstract

Purpose

National tourism offices worldwide implement marketing strategies to influence tourists’ choices. However, there is more than meets the eye when it comes to choosing a city as a tourism destination. The purpose of this paper is to answer which are the characteristics that play a key role in room occupancy.

Design/methodology/approach

Diverse characteristics such as the city offer, demographics, natural amenities (e.g. number of beaches) and also politics (e.g. type of government) are combined into a decision tree model to unveil the relevance of each in determining room occupancy. The empirical experiments used data known in 2015 from 43 cities from Europe and the rest of the World to model room occupancy rate in 2016.

Findings

While the seasonality effect plays the most significant role, other less studied features such as the type of political party prior to current government were found to have an impact in room occupancy.

Originality/value

This study unveiled that center–right and right governments are generally more sensitive to promote its city as a tourism destination.

Details

International Journal of Tourism Cities, vol. 5 no. 3
Type: Research Article
ISSN: 2056-5607

Keywords

Article
Publication date: 1 January 1990

Andrew Lockwood and Peter Jones

Achieving a balance between occupancy and average room rate is nowwell recognised as a prime determinant of good rooms departmentperformance. Yield management techniques are…

Abstract

Achieving a balance between occupancy and average room rate is now well recognised as a prime determinant of good rooms department performance. Yield management techniques are increasingly used to help maximise rooms department sales revenue. However, it can be argued that the complexity of making available different product offerings to different market segments requires not only consideration of the sales side of the profit equation but of the cost side as well. The nature of the variable costs of accommodation operations is examined and a case study approach is used to describe the contribution derived from different room types. These data are then used to construct a value engineering matrix which can identify successful and not so successful areas of operation and suggest ways of improving overall profit performance.

Details

International Journal of Contemporary Hospitality Management, vol. 2 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 4 February 2014

Amrik Singh, Chekitan S. Dev and Robert Mandelbaum

The objective of this exploratory study is to investigate the “flow-through” or relationship between top-line measures of hotel operating performance (occupancy, average daily rate

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Abstract

Purpose

The objective of this exploratory study is to investigate the “flow-through” or relationship between top-line measures of hotel operating performance (occupancy, average daily rate and revenue per available room) and bottom-line measures of profitability (gross operating profit and net operating income), before and during the recent great recession.

Design/methodology/approach

This study uses data provided by PKF Hospitality Research for the period from 2007-2009. A total of 714 hotels were analyzed and various top-line and bottom-line profitability changes were computed using both absolute levels and percentages. Multiple regression analysis was used to examine the relationship between top and bottom line measures, and to derive flow-through ratios.

Findings

The results show that average daily rate (ADR) and occupancy are significantly and positively related to gross operating profit per available room (GOPPAR) and net operating income per available room (NOIPAR). The evidence indicates that ADR, rather than occupancy, appears to be the stronger predictor and better measure of RevPAR growth and bottom-line profitability. The correlations and explained variances are also higher than those reported in prior research. Flow-through ratios range between 1.83 and 1.91 for NOIPAR, and between 1.55 and 1.65 for GOPPAR, across all chain-scales.

Research limitations/implications

Limitations of this study include the limited number of years in the study period, limited number of hotels in a competitive set, and self-selection of hotels by the researchers.

Practical implications

While ADR and occupancy work in combination to drive profitability, the authors' study shows that ADR is the stronger predictor of profitability. Hotel managers can use flow-through ratios to make financial forecasts, or use them as inputs in valuation models, to forecast future profitability.

Originality/value

This paper extends prior research on the relationship between top-line measures and bottom-line profitability and serves to inform lodging owners, operators and asset managers about flow-through ratios, and how these ratios impact hotel profitability.

Details

International Journal of Contemporary Hospitality Management, vol. 26 no. 2
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 4 August 2021

Carol Esmark Jones, Stacie Waites and Jennifer Stevens

Much research regarding social media posts and relevancy has resulted in mixed findings. Furthermore, the mediating role of relevancy has not previously been examined. This paper…

Abstract

Purpose

Much research regarding social media posts and relevancy has resulted in mixed findings. Furthermore, the mediating role of relevancy has not previously been examined. This paper aims to examine the correlating relationship between types of posts made by hotels and the resulting occupancy rates. Then, the mediating role of relevancy is examined and ways that posts can increase/decrease relevancy of the post to potential hotel users.

Design/methodology/approach

Within the context of the hotel industry, three studies were conducted – one including hotel occupancy data from a corporate chain – to examine the impact of social media posts on relevancy and intentions to stay at the hotel. Experimental studies were conducted to explain the results of the real-world hotel data.

Findings

The findings show that relevancy is an important mediator in linking social media posts to service performance. A locally (vs nationally) themed post can decrease both the relevancy of a post and the viewer’s intentions to stay at a hotel. This relationship, however, can be weakened if a picture is included with the post, as a visual may increase self-identification with a post.

Originality/value

These results have important theoretical and practical implications as social media managers attempt to find the best ways to communicate to their customers and followers. Specifically, there are lower and upper limits to how many times a hotel should be posting to social media. The data also show many hotels post about local events, such as school fundraisers or a job fair, that can be harmful to stay intentions, likely due to the irrelevant nature of local posts to customers who are likely to stay in a hotel. National posts are seen as more relevant and likely to increase stay intentions, and the inclusion of a picture can help local posts seem more relevant.

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Publication date: 31 October 2022

Maulana Agung Wibowo and Utz Dornberger

The objectives of this chapter are: first, to analyze the magnitude of the COVID-19 impact on homestay business in Bali and second, to identify the most significant determinant of…

Abstract

The objectives of this chapter are: first, to analyze the magnitude of the COVID-19 impact on homestay business in Bali and second, to identify the most significant determinant of COVID-19 to the homestay industry. It hopes that the results would contribute to policy recommendations and business strategies to increase the resilient capacity of the homestay business during the pandemic period. Due to the pandemic situation, 74 respondents of homestay owners were interviewed through an online survey (Google form). The data gathering was through three events of focus group discussion and several in-depth interviews. Partial Least Squares regression and descriptive statistics were applied. The result shows that, first, the COVID-19 pandemic has a considerable decreasing impact on the (1) homestay occupancy rate, (2) homestay characters (room rental price), (3) homestay competency capital, (4) provided facilities, and (5) guest composition. Second, during the global pandemic, the homestay business association, the number of media promotions, the number of room booking channels, and the homestay characters significantly impact the homestay occupancy rate. Third, to increase the demand for tourism, appropriate measures and policies should be taken, such as increasing the travel bubble consent, mobilizing central government officers working in Bali, increasing the number of domestic promotions, and only using an effective and efficient room booking channel.

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