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Open Access
Article
Publication date: 28 August 2023

Delly Mahachi Chatibura

The purpose of this study is to examine the influence of key hotel attributes on the room rates of selected hotels in the Greater Gaborone Region, Botswana.

Abstract

Purpose

The purpose of this study is to examine the influence of key hotel attributes on the room rates of selected hotels in the Greater Gaborone Region, Botswana.

Design/methodology/approach

Using hedonic pricing analysis, the effect of eight attributes collected from 80 standard double rooms on Booking.com in the area was analysed using quantile regression.

Findings

The estimated results from quantile regression suggested the importance of the 10th quantile as the best predictor of hotel room price distribution. Overall, the presence of a fitness centre and the availability of meeting and conference facilities were positively significant for the lowest- and premium-priced hotels, respectively.

Research limitations/implications

The study advanced the literature in hedonic pricing models by confirming the applicability of hotel room rate attribute research in unexplored environments.

Practical implications

Hotel managers should be aware of the influence of key attributes, such as meeting and conference space availability and locational factors, on the pricing decisions of room rates in the Greater Gaborone Region. The study also presented opportunities for business-to-business marketing between hotel and tour operators in the region.

Originality/value

The study is one of the few that uses quantile regression in the hedonic pricing analysis of hotel room rates.

Details

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

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.

Details

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

Keywords

Open Access
Article
Publication date: 20 April 2018

Moisés Simancas Cruz, Juan Israel García Cruz, Carlos Alberto Greifemberg and María Pilar Peñarrubia Zaragoza

The quality of tourist accommodation establishments is a recurring theme in public strategies for planning and managing tourist destinations. The applying standards as a way to…

5252

Abstract

Purpose

The quality of tourist accommodation establishments is a recurring theme in public strategies for planning and managing tourist destinations. The applying standards as a way to achieve quality. This strategy consists of legally regulating a series of minimum physical standards by using measureable parameters, as well as the desired characteristics or levels of amenities, which vary according to the type of provision required. The purpose of this study is to analyze the strengths and weaknesses of applying strategies that regulate standards for accommodations in coastal tourism areas in the Canary Islands (Spain).

Design/methodology/approach

The authors used an explanatory case study methodology. An “inter-case” comparison has been chosen, because the object of analysis (public policy applying tourism standards) has changed over time; furthermore, a content analysis approach was selected so that the subject of this research is the process of implementing this kind tourism policy. The result is a systematization of the process in stages.

Findings

Quantifiable criteria that exclusively consider the physical or operational parameters of a tourist establishment are no longer sufficient to provide quality service that meets the needs and expectations of customers. It is not enough to set standards for surface area parameters or essential amenities when organizing new tourist developments, but rather it is the qualitative aspect that must be addressed. At the same time, quality tourist accommodation establishment is not obtained merely by reducing density, which constitutes the significant standard.

Research limitations/implications

This paper evidence is presented that may influence the quality of accommodation perceived by the client, which increases their level of satisfaction and, in turn, the degree of trust and, therefore, fidelity, understood as the future decision to repeat or not the tourist experience. There are also issues related to the approach that the quality of accommodation establishments has a direct effect on the visitor’s perception of the destination, which cannot be merely physical, mensurable in square metres.

Practical implications

The relationship between urban standards and quality is no longer linear. This determines that the regulated tourist accommodations (defined by sectoral regulations) it is common to set a required plot size in m2 based on the number of bed places offered by the establishment is no longer valid. Today, tourists rate accommodation establishments by the prestige of their brand or the diversity of services and experiences (entertainment, sensations, emotions, etc.) they provide. These experiences play such an important role in producing customer satisfaction and loyalty to a hotel that guests are willing to pay more for their stay, with the understanding that they will be able to experience certain emotions. It has been evidenced that the main reason for setting physical quality parameters that can be measured by a rating system for accommodation establishments, to provide a basic reference for customers, is no longer necessary, given the amount of easily accessible real-time information freely available through multiple independent channels based on the 2.0 paradigm, information technologies and communication, as well as applications and virtual platforms.

Social implications

Applying this public strategy of classifying or rating tourist accommodations on a territorial scale has some strengths and weaknesses. However, it is not easy to find a comprehensive evaluation of the impact of such strategies because, among other issues, the public administration seems disinterested in measuring the consequences of their decisions, instead focussing on whether the formal legal requirements are being complied with. Moreover, whenever such assessments have been carried out, the discussion has been limited to the effectiveness of the implementation. This is why, beyond such purely mechanical responses, there are currently no studies or technical reports that specifically examine the positive or negative effects of such approaches. Evidently, these circumstances make any work analyzing this material relevant and timely. Likewise, the main reason for setting physical quality parameters that can be measured by a rating system for accommodation establishments, to provide a basic reference for customers, is no longer necessary, given the amount of easily accessible, real-time information freely available through multiple independent channels based on the 2.0 paradigm, information technologies and communication, as well as applications and virtual platforms.

Originality/value

The paper determines that the impact of the strategies of set a required plot size in square metres based on the number of bed places offered by the establishment is limited. Applying this public strategy of classifying or rating tourist accommodations on a territorial scale has some strengths and weaknesses. However, it is not easy to find a comprehensive evaluation of the impact of such strategies because, among other issues, the public administration seems disinterested in measuring the consequences of their decisions, instead focussing on whether the formal legal requirements are being complied with. Moreover, whenever such assessments have been carried out, the discussion has been limited to the effectiveness of the implementation. This is why, beyond such purely mechanical responses, there are currently no studies or technical reports that specifically examine the positive or negative effects of such approaches. Evidently, these circumstances make any work analyzing this material relevant and timely.

Details

Journal of Tourism Analysis: Revista de Análisis Turístico, vol. 25 no. 1
Type: Research Article
ISSN: 2254-0644

Keywords

Open Access
Article
Publication date: 14 April 2022

Deepak Saxena, Mairead Brady, Markus Lamest and Martin Fellenz

This study aims to provide more insight into how customer voice is captured and used in managerial decision-making at the marketing-finance interface. This study’s focus is on…

2674

Abstract

Purpose

This study aims to provide more insight into how customer voice is captured and used in managerial decision-making at the marketing-finance interface. This study’s focus is on understanding how the customer voice, often communicated through online and social media platforms, is used in high-performing hotels.

Design/methodology/approach

This research is based on a case study of four high-performing Irish hotels. For each case, multiple informants, including marketing managers, general managers and finance managers, were interviewed and shadowed. Twenty seven decisions across the four cases were analysed to assess the use of customer voice in managerial decision-making.

Findings

Social media provides a stage that has empowered the customer voice because of the public nature of the interaction and the network effect. Customer voice is incorporated in managerial decision-making in three distinct ways – symbolically as part of an early warning system, for action-oriented operational decisions and to some extent in the knowledge-enhancing role for tactical decisions. While there is a greater appreciation among senior managers and the finance and accounting managers of the importance of customer voice, this study finds clear limits in its utilisation and more reliance on traditional finance and accounting data, especially in strategic decision-making.

Research limitations/implications

The cases belong to a highly visible open environment of hotels in an industry where customer voice has immediate and strong effects. The findings may not directly apply to industries characterised by a relatively more closed context such as banking or insurance. Moreover, the findings reflect the practices of high-performing hotels and do not necessarily capture the practices used in less successfully operating hotels.

Practical implications

While marketers need to enhance their ability to create a narrative that links the customer voice to revenue generation, finance managers also need to develop a skillset and adopt a mindset that appropriately reflects the influential role for customer voice in managerial decision-making.

Originality/value

Despite the linkage of marketing performance to business performance, there is limited research on the impact of customer information on managerial decision-making. This research provides insight into how customer voice is considered at the critical marketing-finance interface.

Details

Qualitative Market Research: An International Journal, vol. 25 no. 3
Type: Research Article
ISSN: 1352-2752

Keywords

Open Access
Article
Publication date: 9 November 2021

Kaveh Jafari, Ali Özduran and Mehmet Bahri Saydam

The study sought to examine the impacts of COVID-19 on tourism from the stakeholder perspective in the case of Famagusta town in Northern Cyprus.

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Abstract

Purpose

The study sought to examine the impacts of COVID-19 on tourism from the stakeholder perspective in the case of Famagusta town in Northern Cyprus.

Design/methodology/approach

Via a qualitative research approach, data are collected through face-to-face interviews from direct and indirect tourism stakeholders operating in Famagusta. A judgmental sampling strategy was employed to collect data from tourism stakeholders on the impacts of COVID-19 on tourism. Descriptive data analysis is engaged to report the results.

Findings

Results of the study showed that the novel coronavirus has hampered the tourism sector in Famagusta, Northern Cyprus. Indeed, as the globe suffered its effects in terms of economic gains, business and business closure. It has been the same with Famagusta, while a few private sectors positively gained (Internet and Technology), all other tourism-reliant sectors such as hotels, restaurants, travel agencies and the transport sector massively suffered as a result of the global lockdown due to COVID-19 pandemic.

Originality/value

Given the ever-changing state of knowledge and scarcity of literature, the current study seeks to summarize what has been learned from previous crises and back it up with qualitative research including senior industry stakeholders.

Details

International Hospitality Review, vol. 37 no. 2
Type: Research Article
ISSN: 2516-8142

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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2516-8142

Keywords

Open Access
Article
Publication date: 13 August 2021

David Boto-Garcia, Marta Escalonilla, Emma Zapico and Jose F. Baños

This paper aims to examine hotel guests’ satisfaction relative to room rates paying attention to the heterogeneity in the scale of satisfaction scores.

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Abstract

Purpose

This paper aims to examine hotel guests’ satisfaction relative to room rates paying attention to the heterogeneity in the scale of satisfaction scores.

Design/methodology/approach

This paper studies guests’ post-purchase hotel evaluation using survey data from a sample of 14,879 tourists visiting a Northern Spanish region. This study estimates a Heteroskedastic Ordered Probit model in which both “cognitive” and “emotional” components of satisfaction are modelled. The model allows us to control for heterogeneity in the scale of the latent satisfaction scores.

Findings

This paper finds that satisfaction relative to rates (value for money) decreases with expenditure per person and day. Interestingly, this negative relationship mainly holds for those who do not prioritize prices at the time of choosing the hotel. Positive first impressions are positively associated with higher satisfaction. In addition, this study finds that the emotional component of satisfaction increases with hotel quality and hiring a full board, being also greater among women and elderly people.

Originality/value

Instead of using an overall measure of satisfaction, this paper uses one that gathers how the tourist assesses satisfaction in relation to cost (value for money).

Details

Applied Economic Analysis, vol. 29 no. 87
Type: Research Article
ISSN:

Keywords

Open Access
Article
Publication date: 14 April 2020

Hongxiu Li, Yong Liu, Chee-Wee Tan and Feng Hu

Building on the three-factor theory, this study aims to unravel how the role of hotel attributes such as basic, excitement and performance factors could differ in accordance with…

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Abstract

Purpose

Building on the three-factor theory, this study aims to unravel how the role of hotel attributes such as basic, excitement and performance factors could differ in accordance with different hotel star ratings and distinct customer segments.

Design/methodology/approach

This study explores the asymmetric effects of hotel attributes on customer satisfaction by extracting 412,784 consumer-generated reviews from TripAdvisor across different cities in China.

Findings

By taking into account the origins of customers and hotel star ratings, the study uncovers that guests’ expectations of hotel performance differ with respect to their origins (domestic and international guests) and the star ratings of the hotels being reviewed, thereby moderating the asymmetric impact of hotel attributes on customer satisfaction.

Research limitations/implications

The study compares and contrasts the determinants of customer satisfaction for domestic and international guests in the context of Chinese hotels. Care should still be exercised when generalizing the insights gleaned from this study to other contexts.

Practical implications

The findings from this study translate into actionable guidelines for hotel operators to make informed decisions regarding service improvement.

Originality/value

The study extends previous work by offering a deeper understanding of the asymmetric impact of hotel attributes on customer satisfaction. Specifically, this study provides a deep understanding of the different hotel attributes such as basic, performance and excitement factors in explaining customer satisfaction among different hotel customer segments. Findings from this study can not only inform hotel operators on the significance of various hotel attributes in determining customer satisfaction but also guide the formulation of business strategies to retain customers by inducing delight and not frustration.

Details

International Journal of Contemporary Hospitality Management, vol. 32 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

Open Access
Article
Publication date: 2 April 2024

Xuan V. Tran, Kaleigh McCullough, Makayla Blankenship, Trista Barton, Sophia Cohen, Tabitha Harris, Andrea Lopez, Summer Simone and Trace Bolger

This study aims to create actionable guidelines for pricing decision-making by employing game a theory matrix to forecast the correlation between the average daily rate and the…

Abstract

Purpose

This study aims to create actionable guidelines for pricing decision-making by employing game a theory matrix to forecast the correlation between the average daily rate and the latest ambiance of hotels.

Design/methodology/approach

Utilizing a vector error correction model, the research employs game theory to assess the influence of the average daily rate on the hotel's newest atmosphere during both peak season (April–September) and valley season (October–March).

Findings

Findings indicate that during the peak season, when the average daily rate rises in resorts and falls in suburban areas, the hotel’s newest atmosphere is at its best in both types of accommodations. During the off-peak season, the hotel’s newest atmosphere is achieved when both resorts and suburban accommodations increase their average daily rates.

Research limitations/implications

There are two study constraints. One is the assumption that hotel guests in both parties prefer not to change hotels, but in fact they would. Two is a limited sample of two resort and suburban markets.

Practical implications

This suggests that the hotel’s newest atmosphere can draw both leisure and business travelers to suburban areas during the low season and more leisure travelers to resorts during the high season.

Social implications

The study’s findings have implications for revenue related to the hotel’s newest atmosphere and cleanliness for both suburban and resort hotels, particularly when promoting tourism collaboratively.

Originality/value

The study provides valuable insights for hotel managers in analyzing pricing strategies using matrices.

Details

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

Keywords

Open Access
Article
Publication date: 24 March 2023

Dimitris Koutoulas and Akrivi Vagena

The purpose of this study is, first, to determine which developments have shaped official hotel classification systems over recent years (including the impact of guest-review…

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Abstract

Purpose

The purpose of this study is, first, to determine which developments have shaped official hotel classification systems over recent years (including the impact of guest-review platforms) and second to establish the future of those systems through the eyes of the people who are actually in charge of operating them.

Design/methodology/approach

Semi-structured interviews were chosen as the most suitable method for approaching hotel classification system administrators. This method is in line with previous research on approaching key informants in their respective fields. Sixteen people representing 12 different official national hotel classification systems from across the world as well as one commercial hotel star rating system participated in the online interviews.

Findings

The first main conclusion is that hotel classification systems – especially voluntary ones – would not have survived the enormous impact of guest-review platforms without quickly adjusting to the ever-changing hotel industry landscape. The frequent review of classification criteria and procedures has become the main survival strategy of classification systems. The second conclusion is that system operators are strongly optimistic about the future outlook of hotel classification based on their proven flexibility to swiftly adapt to new market conditions.

Originality/value

Research about hotel classification systems is usually based on the views of the systems' users, i.e. hotels or hotel guests, whereas the present paper reflects the perspective of the systems' operators, an angle rarely analyzed in the literature.

Details

Journal of Tourism Futures, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2055-5911

Keywords

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