Search results

1 – 10 of over 1000
Article
Publication date: 6 November 2023

Chi-Jen Chen

Channel coordination has become an essential part of researching hotel supply chain management practices. This paper develops an improved channel coordination approach to…

Abstract

Purpose

Channel coordination has become an essential part of researching hotel supply chain management practices. This paper develops an improved channel coordination approach to coordinate the profit distribution between hotels and online travel agencies (OTAs) achieved through an introduction of advertising fees. This direction further improves the decentralization of cooperation and achieves Pareto improvement to achieve mutual profitability.

Design/methodology/approach

The methodology used in this study involves Stackelberg game theory employed for the decision-making and analysis of both the hotel and OTA. The OTA, acting as the leader, offers a hotel a contract specifying the commission rate that the hotel will pay to the respective OTA. The hotel, acting as a follower, sets a self-interested room rate as a given response. A deterministic, price-sensitive linear demand function is utilized to derive possible analytical solutions once centralized, noncooperative decentralization and cooperative decentralized channel occurs.

Findings

Results show that a new channel coordination approach is possible, namely via advertising fees. Prior to channel coordination, the OTA tends to set a higher commission rate, and the hotel sets a higher room rate in response under noncooperative decentralization. As such, this results in a lower channel-wide profit for all. One way to reduce channel-wide profit loss is to use a method of cooperative decentralization, which can, and will result in optimal profit as centralization takes place. However, the lack of incentives makes cooperative decentralization unfeasible. Further improvement is possible by using advertising fees based on a cooperative decentralization agreement, which can reach Pareto improvement.

Practical implications

This paper helps the OTA industry and hotel owners cooperate by way of smoother coordination. This study provides practitioners with two important practical implications. The first one is that the coordination between the hotel industry and OTA through cooperative decentralization allows for the achievement of higher profitability than that of noncooperative decentralization. The second one is that this paper solves the outstanding problem of insufficient incentives characteristic of cooperative decentralization by means of an advertising fee as a new supply chain coordination approach.

Originality/value

This paper offers both the problem and solution regarding the lack of incentives that hamper cooperative decentralization without the use of advertising fees. This paper is unique in that it derives analytical solutions regarding commissions levied in a typical hotel supply chain under noncooperative decentralization.

Details

Journal of Hospitality and Tourism Insights, vol. 7 no. 4
Type: Research Article
ISSN: 2514-9792

Keywords

Open Access
Article
Publication date: 30 August 2024

Elisa Menicucci and Guido Paolucci

This study aims to investigate the effects of economic policy uncertainty (EPU) on Italian hospitality sector. The investigation attempts to explain whether hotel performance…

Abstract

Purpose

This study aims to investigate the effects of economic policy uncertainty (EPU) on Italian hospitality sector. The investigation attempts to explain whether hotel performance drops when the perceived economic uncertainty increases in the period 2018–2022.

Design/methodology/approach

The study examines the impact of EPU on hotel performance in a sample of 661 Italian luxury hotels. To establish the relationship between EPU and hotel performance, we employ the generalized estimating equations (GEE) technique on 3,305 hotel-year observations.

Findings

The results show that EPU has a negative impact on hotel performance. More specifically, the analysis reveals that EPU is negatively and significantly related to the revenue per available room (REVPAR), average daily rate (ADR) and hotel occupancy (OCCR). We also look at the role of hotel brand chain affiliation and the moderating effect of conference space and hotel wellness services on the relationship between EPU and hotel performance.

Research limitations/implications

Results provide new evidence for academics to critically evaluate the behavior of luxury hotels under uncertain economic conditions. The investigation offers valuable information also for government, tourism policymakers, tourist hotel owners, hoteliers and tourism managers in their decision-making.

Practical implications

This study provides strategic implications for practitioners and operators in hospitality industry to evaluate the factors ensuring hotel profitability in periods of EPU.

Originality/value

This paper provides interesting insights into the characteristics and practices of profitable hotels in Italy. Few econometric studies empirically explored the effects of EPU in the hospitality field so far and no prior study investigated this topic in the Italian hospitality sector. Therefore, this paper tries to close an important gap in the existing literature improving the understanding of EPU in the Italian hospitality industry.

Details

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

Keywords

Open Access
Article
Publication date: 23 May 2023

Yu-Hsiang (John) Huang, Bradley Meyer, Daniel Connolly and Troy Strader

Taiwan’s hotel industry was adversely impacted by the COVID-19 pandemic. This study aims to examine the effect of strategic choices by Taiwanese international tourist hotels…

Abstract

Purpose

Taiwan’s hotel industry was adversely impacted by the COVID-19 pandemic. This study aims to examine the effect of strategic choices by Taiwanese international tourist hotels before and during the pandemic environments.

Design/methodology/approach

A data envelopment analysis (DEA)-based Malmquist methodology is used in this study to provide a mechanism to assess Taiwanese hotel strategy performance. Changes in the productivity and performance of Taiwanese international tourist hotels were analyzed in the periods before and during the pandemic to uncover insights useful should a similar crisis occur in the future. Panel data were obtained from the annual report of international tourist hotels published by the Taiwan Tourism Bureau from 2017–2020. Two groups of hotels were analyzed in this study: city hotels and scenic hotels.

Findings

The findings of this study reveal that chain hotels tended to perform better than independent hotels in both city and scenic areas during the global pandemic. Specifically, the crisis caused a substantial decline in productivity and profitability for international tourist hotels in Taipei City during the COVID-19 period. Compared to city hotels, findings also indicate that most international tourist hotels in scenic areas were able to maintain better productivity, including larger-sized scenic hotels.

Originality/value

The DEA-based analysis provides unique and valuable insights for hotel firm leaders on how to better identify and make strategic choices when responding to future crises.

Article
Publication date: 19 January 2024

Onofre Martorell Cunill, Luis Otero, Pablo Durán Santomil and Jaime Gil Lafuente

In this vein, this paper aims to provide empirical evidence on the following questions: Which expansion strategies offer better operational and economic performance? What effects…

Abstract

Purpose

In this vein, this paper aims to provide empirical evidence on the following questions: Which expansion strategies offer better operational and economic performance? What effects does performance-related diversification have? How do other factors such as size, quality, service offered, location or seasonality interact with performance.

Design/methodology/approach

In this paper, the analysis of the effects of growth strategies and hotel attributes on performance is carried out with a sample of 255 hotels that operate internationally. Using panel data and quantile regression, this study evaluates the effect of expansion and diversification on the hotels’ performance.

Findings

From these findings, it appears that the equity strategy (own hotels) outperforms non-equity strategies (hotels under rental, franchise and management contract) at the operational level. However, the economic return of the property, both adjusted and unadjusted to risk, is lower under the property ownership strategy than under the franchise and management strategies because, in general, it requires a higher investment. Regarding diversification, the growth strategy based on related diversification in food and beverage services has a negative impact on performance, calling into question the synergies between the two businesses. However, an exception to this effect is seen among those hotels, mainly those in the Caribbean, that opt to provide all-inclusive services, since these hotels achieve better occupancy rates and more stable results.

Research limitations/implications

This study has not taken into account the effect of hotel property revaluation on the performance of the ownership strategy, as there is no information on the historical average revaluation at the level of each individual hotel. This study has also been unable to include information regarding the level of competition and seasonality of sales.

Originality/value

This paper considers a wide number of factors that can influence the performance of hotels. Second, this is the only paper that studies the impact of growth strategies from the point of view of the hotel chain. Also, the sample considered uses data at the individual level on hotels and this research analyses not only operational performance but also economic performance.

Details

Management Decision, vol. 62 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 18 May 2023

Fajar Kusnadi Kusumah Putra and Rob Law

This paper identifies the critical success factors (CSFs) of virtual hotel operator (VHO) in using hotel management system partnerships with small- and medium-sized hotels (SMSHs).

Abstract

Purpose

This paper identifies the critical success factors (CSFs) of virtual hotel operator (VHO) in using hotel management system partnerships with small- and medium-sized hotels (SMSHs).

Design/methodology/approach

This study uses a qualitative approach, with 25 semi-structured interviews with hotel owners and VHO management. Thematic analysis is used to determine themes to evaluate hotel owners and operators' perceptions.

Findings

CSFs for VHO partnership with SMSHs include marketing and promotion strategies, client relationships, training and human resources development, hotel operation management, innovation strategies, capital expenditures and property management systems (PMSs). VHOs also have a symbolic impact on the mutualistic relationship with SMSHs by increasing service and enhancing product competitiveness and profitability.

Research limitations/implications

Findings are beneficial for VHO in determining the most significant CSFs, thereby establishing additional metrics in business performance and increasing resilience in the accommodation sector. Further studies can measure the digital technology factors from VHO, including PMSs and mobile applications.

Originality/value

This study first identifies CSFs for VHO companies from the perspectives of hotel owners and management. This contribution adds to the literature on CSFs in the context of digital technology implementation in SMSHs. Moreover, implications are beneficial for VHO management in determining the most significant CSFs for companies to measure the business performance of the companies and increase resilience in the accommodation sector.

Details

Journal of Hospitality and Tourism Insights, vol. 7 no. 3
Type: Research Article
ISSN: 2514-9792

Keywords

Open Access
Article
Publication date: 20 February 2023

Xuan V. Tran

The purpose of this paper is to examine the hotel growth model including hotel brand, culture and life cycle phases of the Myrtle Beach, South Carolina, the fastest growing…

Abstract

Purpose

The purpose of this paper is to examine the hotel growth model including hotel brand, culture and life cycle phases of the Myrtle Beach, South Carolina, the fastest growing tourism destination in the United States.

Design/methodology/approach

Culture reflecting consuming behaviour of low-context innovators and high-context imitators is measured by the price elasticity of demand (PED). Hotel brand reflecting guests’ hotel class is measured by the income elasticity of demand. Autoregressive distributed lag has been conducted on the Smith Travel Research data in 33 years (1989–2022) to determine the relationship among hotel brand, culture and life cycles.

Findings

Skilled labour is the key to make hotels grow. Therefore, increase room rates when hotels possess skilled professionals and decrease room rates when hotels have no skilled professionals. During the rejuvenation in Myrtle Beach (1999–2003), hoteliers increased room rates for innovators due to skilled professionals to increase revenue. Otherwise, a decrease in room rates due to lack of skilled professionals would lead to increase revenue.

Research limitations/implications

(1) Although Myrtle Beach is one of the fastest growing tourism destinations in the US, it has a relatively small geographic area relative to the country. (2) Data cover over one tourist life cycle, so the time span is relatively short. Hoteliers can forecast the number of guests in different culture by changing room rates.

Practical implications

To optimize revenue, hoteliers can select skilled labour in professional design hotel brands which could make an increase in demand for leisure transient guests no matter what room rates increase after COVID-19 pandemic.

Social implications

The study has considered the applied ethical processes regarding revenue management that would maximize both revenue and customer satisfaction when it set up an increase in room rates to compensate for professional hotel room design or it decreases room rates for low-income imitators in exploration and development.

Originality/value

This research highlights that (1) skilled design in the luxury hotel brand is the key for the hotel growth and (2) there is a steady state of the growth model in the destination life cycle.

Details

International Hospitality Review, vol. 38 no. 2
Type: Research Article
ISSN: 2516-8142

Keywords

Article
Publication date: 13 August 2024

Jean Dubé, Anthony Lapointe, Vincent Martel, Mackens Brejnev Placide and Isabel Victoria Torres Ospino

This paper aims to estimate the price premium for a sea view on room rent in a Nordic context, i.e. where proximity to the sea is not valued for the presence of swimmable beaches…

Abstract

Purpose

This paper aims to estimate the price premium for a sea view on room rent in a Nordic context, i.e. where proximity to the sea is not valued for the presence of swimmable beaches and suntanning activities. The analysis also explores regional and seasonal variations in price premiums.

Design/methodology/approach

To do so, the study uses information from a Web search of room rents during winter and summer peak seasons. The investigation is based on hotels located along the St. Lawrence River in the Province of Quebec (Canada), where about 40 to 60 km separate both shores. A matching procedure and hedonic pricing models are used to identify the causal impact of a sea view on individual room rents.

Findings

Results suggest that the view price premium varies between 0% and 20%. It is relatively stable on the North Shore, but varies highly on the South Shore, where touristic activities are mainly operating in summertime. The estimation suggests a median local economic benefit of about $30.1M/year.

Practical implications

The analysis reveals that a hedonic pricing model might fail to identify causal effects, especially if it does not account for hotel characteristics. A multiple linear regression model does not ensure a causal interpretation if it neglects unobserved characteristics correlated with the view.

Originality/value

The paper proposes a matching identification procedure accounting for spatial confounding to retrieve the causal impact of the view of the sea on hotel room rents. A heterogeneity analysis suggests that view price premium on room rent can vary within seasons but mainly across regions, even for the same amenities.

Article
Publication date: 19 April 2024

Carmelita Wenceslao Amistad and Daryl Ace Cornell

This study aims to determine the effects of lodging infrastructure development (LID) on Cordillera Administrative Region’s (CAR) environmental quality and natural resource…

Abstract

Purpose

This study aims to determine the effects of lodging infrastructure development (LID) on Cordillera Administrative Region’s (CAR) environmental quality and natural resource management and its implication to globally responsible leadership. Specifically, this study sought to determine the contribution of LID to environmental deterioration and natural resource degradation in the CAR. As a result, a mathematical model is developed, which supports sustainability practices to maintain the environmental quality and natural resource management in CAR, Philippines.

Design/methodology/approach

This study used a descriptive research design using a mixed-methods approach. Self-structured interview and survey were used to gather the data. The population of this study involved three groups. There were 6.28% (34) experts in the field for the qualitative data, 70.24% (380) respondents for the quantitative data and 23.47% (127) from the lodging establishments. 120 respondents from the Department of Tourism – CAR (DOT-CAR) accredited hotels. Nonparametric and nonlinear regression analysis was used to process the data.

Findings

The effects of LID on the environmental quality and natural resource management in CAR as measured through carbon emission from liquefied petroleum gas (LPG), electricity and water consumption in the occupied guest rooms revealed a direct correlation between the LID. Findings conclude that the increase in tourist arrival is a trigger factor in the increase in LID in the CAR. The increase in LID implies a rise in carbon emission in the lodging infrastructure. Any increase in tourist arrivals increases lodging room occupancy; the increased lodging room occupancy contributes to carbon emissions. Thus, tourism trends contribute to the deterioration of the environmental quality and degradation of the natural resources in the CAR. A log-log model shows the percentage change in the average growth of tourist arrival and the percentage increase in carbon emissions. Establishments should observe standard room capacity to maintain the carbon emission of occupied lodging rooms at a minimum. Responsible leadership is a factor in the implementation of policy on standard room capacity.

Practical implications

The result of the study has some implications for the lodging businesses, the local government unit (LGU), the Department of Tourism (DOT) and the Department of Environment and Natural Resources (DENR) in the CAR. The study highlights the contribution of the lodging establishments to CO2 emission, which can degrade the quality of the environment, and the implication of responsible leadership in managing natural resources in the CAR. The direct inverse relationship between energy use and CO2 emission in hotels indicates that increased energy consumption leads to environmental degradation (Ahmad et al., 2018). Therefore, responsible leadership among policymakers in the lodging and government sectors – LGU, DOT and DENR – should abound in the CAR. Benchmarking on the model embarked from this study can help in designing and/or enhancing the policy on room capacity standardization, considering the total area with its maximum capacity to keep the carbon emission at a lower rate. Furthermore, as a responsible leader in the community, one should create programs that regulate the number of tourists visiting the place to decrease the number of overnight stays. Besides, having the political will to implement reduced room occupancy throughout the lodging establishments in CAR can help reduce the carbon emissions from the lodging businesses. After all, one of the aims of the International Environment Protection Organization is to reduce CO2 emissions in the tourism industry. Hence, responsible leadership in environmental quality preservation and sustainable natural resource management must help prevent and avoid greenhouse gas (GHG) emissions.

Originality/value

Most studies about carbon emission in the environment tackle about carbon dioxide emitted by transportation and factories. This study adds to the insights on the existing information about the carbon emission in the environment from the lodging establishments through the use of LPG, electricity and water consumption in the occupied guest rooms. The findings of the study open an avenue for globally responsible leadership in sustaining environmental quality and preservation of natural resources by revisiting and amending the policies on the number of room occupancy, guidelines and standardization, considering the total lodging area with its maximum capacity to keep the carbon emission at a minimum, thus contributing to the lowering of GHG emissions from the lodging industry.

Details

Journal of Global Responsibility, vol. 15 no. 4
Type: Research Article
ISSN: 2041-2568

Keywords

Article
Publication date: 29 August 2023

Jungsun (Sunny) Kim, Mehmet Erdem and Boran Kim

The purpose of this study is to explore whether five factors drawn from the unified theory of acceptance and use of technology (UTAUT) and UTAUT2 significantly influence…

Abstract

Purpose

The purpose of this study is to explore whether five factors drawn from the unified theory of acceptance and use of technology (UTAUT) and UTAUT2 significantly influence customers' intention to use hotel in-room voice assistants (VAs). It further examined culture as a moderator of the relationships between the five factors and customers' intention to use.

Design/methodology/approach

The authors collected data from US and Singapore to examine cultural differences in customer acceptance of in-room VAs. All hypotheses were tested via structural equation modeling and multi-group analysis.

Findings

The results showed that performance expectancy, social influence and hedonic motivation significantly affected customers' intentions to use in-room VAs, while effort expectancy and facilitating conditions did not. The results confirmed that culture did not play a substantial role in moderating the relationships between these factors and intentions to use.

Research limitations/implications

This study established that the instrument and structural paths in the research model were equivalent across two samples from different countries. The findings may not generalize to other countries as the data arises from customers in the US and Singapore.

Practical implications

The findings provide important implications for hotel operators and vendors seeking to enhance customer acceptance of in-room voice technology.

Originality/value

This study addresses the gaps of extant research by developing and testing a research model to better understand the influential factors of in-room VA adoption within the hotel domain.

Details

Journal of Hospitality and Tourism Insights, vol. 7 no. 4
Type: Research Article
ISSN: 2514-9792

Keywords

Book part
Publication date: 30 September 2024

Hassan Ali Khan

Innovation in service, procedure and product design is essential for long-term success in today's fast-paced and cutthroat hospitality sector. This study aims to learn how…

Abstract

Innovation in service, procedure and product design is essential for long-term success in today's fast-paced and cutthroat hospitality sector. This study aims to learn how innovation may revolutionise the hospitality sector and lead to memorable guest experiences.

The research delves into new ways of thinking about service design, emphasizing how to create engaging and individual customer experiences (CXs). In order to stand out in a crowded hospitality market and keep up with customers' ever-changing demands, businesses in the industry are experimenting with new approaches to service, like co-creation, personalisation and experience design.

The study also digs into process innovation in the hotel industry, looking at how the latest tech and automation are helping to streamline processes and boost productivity. Reservation systems, guest check-in and check-out, cleaning and supply chain management are just a few areas that get studied. The study delves into how thoughtful product design may enrich visitors' hotel stays. It explores new and interesting services like in-room entertainment, eco-friendly building techniques and creative cuisine. The study investigates how these unique items affect customers' opinions of the products' worth, satisfaction and loyalty.

Methods such as in-depth interviews with experts, guest surveys and the examination of case studies highlighting cutting-edge design in the hospitality industry are all part of the research strategy. This project seeks to provide useful insights and recommendations for hospitality firms that want to adopt innovative service, process and product design methods by analysing real-world instances and gathering empirical data.

Details

Marketing and Design in the Service Sector
Type: Book
ISBN: 978-1-83797-276-0

Keywords

1 – 10 of over 1000