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1 – 10 of 803
Article
Publication date: 7 November 2016

Rufei Ma and Pengxiang Zhai

One of the important characteristics of the hotel business is uncertainty of lodging demand, which can jeopardize hotel operation and ultimately even threaten a hotel’s survival…

Abstract

Purpose

One of the important characteristics of the hotel business is uncertainty of lodging demand, which can jeopardize hotel operation and ultimately even threaten a hotel’s survival during an economic recession. The purpose of this paper is to propose an approach to determine optimal hotel investment issues under uncertain lodging demand.

Design/methodology/approach

Uncertainty of lodging demand is classified into two types: the impact of unexpected economic recession and the temporary imbalance between supply of hotel rooms and lodging demand. A jump-diffusion real option approach is proposed to analyze how these two types affect optimal investment timing and the potential value of new hotel projects. The case of hotel investment in Macao is used to illustrate the jump-diffusion real option approach.

Findings

The results of numerical analysis show that the uncertainty induced by temporary imbalance between supply of hotel rooms and lodging demand increases the threshold of investment and hotel value, while the uncertainty induced by unexpected economic recession has ambiguous effects on the value and optimal investment timing of new hotel projects.

Practical implications

The jump-diffusion real option approach increases managerial flexibility for managers when making investment decisions on new hotel projects, allowing greater value to be generated than is possible with the conventional discounted cash flow method.

Originality/value

The approach separates the impact of unexpected economic recession on lodging demand from that of “normal” fluctuations in lodging demand, and it considers the impact of both types of uncertainty on hotel investment.

Details

Kybernetes, vol. 45 no. 10
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 4 November 2014

Tianshu Zheng

This study aims to attempt to examine whether the increase in hotel room capacity in the USA had a significant impact on nationwide aggregated weekly revenue per available room…

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Abstract

Purpose

This study aims to attempt to examine whether the increase in hotel room capacity in the USA had a significant impact on nationwide aggregated weekly revenue per available room (RevPAR) during the recession of 2007-2009 and forecast average RevPAR, Occupancy and Average Daily Rate (ADR) for 2013 and 2014.

Design/methodology/approach

Using Autoregressive Integrated Moving Average with Intervention analysis technique, this study examined the significance of the fluctuations in weekly RevPAR, room capacity and market demand through the recent recession and forecasted hotel performance for 2013 and 2014.

Findings

The results of time series analysis suggest that the fast growth of room capacity during the recession was one of the main causes of the decrease in RevPAR. The 9,878 more than expected increase in average weekly number of rooms probably caused at least $0.10 more than expected decrease in average weekly RevPAR. The findings of this study also suggest that the US lodging industry has been facing more severe oversupply since the recession and fully rebound of RevPAR cannot be expected in the very near future.

Practical implications

The findings of this study will help stakeholders make more informed decisions to cope with possible future economic downturns. By quantifying the capacity increase and forecasting future market demand, this study provides hotel investors with empirical evidence on the overdevelopment and insights into expected overall hotel performance in next two years. This study has also discussed the cyclical patterns of hotel development during the past two recessions.

Originality/value

By identifying overdevelopment as one of the main causes of RevPAR decrease during the recession, this study contributes to the literature by adding an alternative explanation of RevPAR fluctuations and deepens the understanding of the adverse effects overdevelopment has on the lodging industry. The findings of this study will help hotel investors develop more informed future expansion plans.

Details

International Journal of Contemporary Hospitality Management, vol. 26 no. 8
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 4 September 2017

Franja Pižmoht, József Györkös and Dijana Močnik

This paper aims to explore the digital economy in the fields of the most promising new technologies: information and communication technologies, biotechnology and nanotechnology…

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Abstract

Purpose

This paper aims to explore the digital economy in the fields of the most promising new technologies: information and communication technologies, biotechnology and nanotechnology. It highlights the convergence of nano-, bio-, info- and cognitive (NBIC) technologies by developing a model for the accurate evaluation of different types of options in the development process of convergent technologies.

Design/methodology/approach

The empirical research is based on theoretical analysis and case studies. The authors conducted six in-depth interviews. The study covered different research projects led by centres of excellence, competence centres and institutions that support the transfer of innovations in the economic and business environment.

Findings

The research findings prove that there is a convergence of NBIC technologies that can be observed and modelled. The created evolutionary model of NBIC convergence, also based on the theory of real options, allows a proper evaluation of the entire convergence process.

Practical implications

For enterprises and scientific research institutions, the NBIC model could represent the starting point for developing further concepts of investment evaluation. The model also considers the indicators of the innovation system, which, in addition to the marketing area, include regulatory challenges of companies (competition, copyrights, patents, taxation, etc.).

Originality/value

This paper enhances the understanding of new technologies in a digital economy. The purpose of this study is to clarify the principal factors for the effective observation and measurement of the convergence phenomenon. It also offers suggestions for improvement of the research and innovation system in the new economy.

Details

Kybernetes, vol. 46 no. 8
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 1 March 1993

Kye‐Sung Chon and Amrik Singh

The overbuilding in the lodging industry, the current economicrecession, the Gulf War and the collapse of the real estate marketcollectively brought forth a major economic impact…

Abstract

The overbuilding in the lodging industry, the current economic recession, the Gulf War and the collapse of the real estate market collectively brought forth a major economic impact on the US lodging industry in recent years. Examines the current state of the US lodging industry and discusses strategies used by hospitality companies in response to the situation.

Details

International Journal of Contemporary Hospitality Management, vol. 5 no. 3
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 5 October 2010

Haemoon Oh and Miyoung Jeong

The purpose of this paper is to illustrate new methods of examining structural differences among segmented markets beyond comparing merely univariate variable mean scores, so as…

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Abstract

Purpose

The purpose of this paper is to illustrate new methods of examining structural differences among segmented markets beyond comparing merely univariate variable mean scores, so as to help marketers and researchers gain better insights into segment differences for meaningful strategy development.

Design/methodology/approach

A comprehensive dataset covering various lodging market segments was constructed from Tripadvisor.com. The data then were sorted into lodging customer segments by star rating, type of operation, and level of price charged. Structural equation modeling with the −2 log‐likelihood difference test was conducted to illustrate how effectively the differences, if any, of market segments could be assessed in contrast to the traditional mean‐score comparison approach.

Findings

Guest satisfaction was influenced by the same performance variable to the same magnitude and direction across different lodging segments examined. Such stability in the amount of influence of performance on guest satisfaction was true even in the fact that the variable mean scores were significantly different across the market segments.

Research limitations/implications

The traditional approach to examining segment differences via univariate mean scores could be one set of results, while the effect‐based difference assessments in this paper resulted in another. Developing marketing strategies based on the effect‐based segment differences, as illustrated in this paper, is considered more effective than the traditional mean‐based approach. One limitation of this paper could be use of a secondary dataset with limited scope of the model employed for an illustrative purpose. Another limitation is that the sample characteristics are unknown due to the nature of a secondary dataset. The examination of the market segments was also limited to those based on only three popular variables.

Originality/value

The paper is a fresh attempt to examine market segment differences through the effect of one variable on another. The paper advances the methods of hospitality and tourism research for examining segment differences beyond the traditional univariate mean‐based examination approach. The methodological illustration is applicable to a vast majority of different theoretical frameworks known in the hospitality and tourism field. Use of the assessment method illustrated in this paper also requires future market segmentation studies to rely more on theories than data.

Details

International Journal of Contemporary Hospitality Management, vol. 22 no. 7
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 12 January 2021

Ozgur Ozdemir, Wenjia Han and Michael Dalbor

The purpose of this paper is twofold. First, the study examines the prolonged effect of policy-related economic uncertainty on hotel operating performance, particularly the room…

Abstract

Purpose

The purpose of this paper is twofold. First, the study examines the prolonged effect of policy-related economic uncertainty on hotel operating performance, particularly the room demand (occupancy). Second, the study attempts to explain why occupancy drops when the perceived economic uncertainty is high by studying the mediating effect of consumer sentiment in the relationship between economic policy uncertainty and hotel demand.

Design/methodology/approach

This quantitative study uses secondary data – US economic policy uncertainty (EPU) index, University of Michigan's index of consumer sentiment (ICS), and property-level hotel operating data from three states of the US – California, Florida and New York. Data were analyzed using random effect regression and structural equation modeling. Robustness tests were conducted to enhance the reliability of the research findings.

Findings

Random-effects regression analysis reveals that policy-related economic uncertainty has a negative and lead-lag effect on hotel occupancy, average daily rate and revenue per available room (RevPAR). Structural equation modeling results show that the relationship between economic policy uncertainty and hotel occupancy is significantly mediated by consumer sentiment. Robustness test results support the findings from the main analysis.

Practical implications

This study offers valuable implications for the hotel professionals in regard to anticipating the economic impact of policy-related uncertainty on hotel industry and understanding how consumer sentiment affects demand at such crises times. Moreover, the study suggests potential course of actions to deal with declining room demand at times of uncertainty.

Originality/value

This empirical study explores how economic policy uncertainty affects hotel performance at the property level and explains the mediating effect of consumer sentiment on hotel room demand. The study provides a first-hand evidence of how consumer sentiment relates to the perception of economic uncertainty and leads to decline in consumer demand. In that regard, findings of the study have valuable implications for hospitality industry practitioners and relevant policymakers.

Details

Journal of Hospitality and Tourism Insights, vol. 5 no. 2
Type: Research Article
ISSN: 2514-9792

Keywords

Article
Publication date: 19 February 2019

Hyoung Ju Song and Kyung Ho Kang

The purpose of this study is to investigate the moderating role of CEO duality on the geographic diversification–firm performance relationship in the US lodging industry.

Abstract

Purpose

The purpose of this study is to investigate the moderating role of CEO duality on the geographic diversification–firm performance relationship in the US lodging industry.

Design/methodology/approach

To examine the individual effect of geographic diversification and the moderating effect of CEO duality, this study adopts random effects regression. Additionally, to appropriately address the endogeneity issue, this study uses random effects regression with the instrumental variable method. The sample period spans 1990-2015 and 258 firm-year observations are included.

Findings

This study finds that geographic diversification has a positive and significant effect on firm performance. Also, the result shows a positive and significant moderating role of CEO duality, which implies that the magnitude of the impact of geographic diversification on firm performance is significantly greater when CEO duality exists.

Research limitations/implications

Although it has a limitation of applying the results of this study to privately held lodging firms in other countries, US public lodging firms are encouraged to consider a corporate governance structure incorporating CEO duality to maximize the effect of geographic diversification on firm performance.

Originality/value

This study contributes to the hospitality literature by providing a unique dimension that the influence of geographic diversification is contingent on the adoption of CEO duality. And, the results of this study provide practical guidelines for the lodging firms’ implementation of geographic diversification.

Details

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

Keywords

Article
Publication date: 21 January 2022

Edward C.S. Ku, Jiunn-Woei Lian and Ling-Ling Liu

The purpose of this study is to integrate wayfinding strategies and open innovation to examine the factors of mobile application (M-App) design.

Abstract

Purpose

The purpose of this study is to integrate wayfinding strategies and open innovation to examine the factors of mobile application (M-App) design.

Design/methodology/approach

The study formulated an M-App model from the wayfinding sense-making and open innovation perspective. Samples were collected from the M-Apps users of Airbnb.com in a survey based on the principle of snowball sampling, and 416 samples were returned in total. The hypothesis testing of the model was conducted using structural equation modeling with Linear Structural Relations.

Findings

The operators of the lodging industry should design the recommended route on the M-Apps for tourists to reach the accommodation on the map function conveniently.

Practical implications

The orientation of wayfinding sense-making integrates the accommodation host to mark the direction of the accommodation on the map function of M-Apps to indicate the direction of the location.

Social implications

The operators of the lodging industry should design the recommended route on the M-Apps for tourists to conveniently reach the accommodation on the map function.

Originality/value

For the M-Apps designer of the lodging industry, devising the function with an arrow point on the map would enable tourists to check their current location handily. Moreover, the M-Apps of lodging businesses can reduce marketing expenses from the high recommendations of tourists.

Details

International Journal of Tourism Cities, vol. 8 no. 3
Type: Research Article
ISSN: 2056-5607

Keywords

Article
Publication date: 19 July 2021

Misun Won and Stephen L. Shapiro

The purpose of this study is to examine consumer behaviors toward a bundle of tickets and lodging using two different message framing: (1) scarcity framing for a high demand

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Abstract

Purpose

The purpose of this study is to examine consumer behaviors toward a bundle of tickets and lodging using two different message framing: (1) scarcity framing for a high demand event, the All-Star Game, and (2) discount framing for a lower demand event, an MLB mid-week game.

Design/methodology/approach

Data were collected through two online surveys of 836 sport consumers in total on Amazon Mechanical Turk (MTurk) and were analyzed using a mix of analysis of variances (ANOVAs) and analysis of covariance (ANCOVA).

Findings

Consumers are likely to buy products separately in a scarce situation. When discounts are offered as benefits of choosing a bundle, consumers with high willingness to pay (WTP) have higher purchase intentions (PI) and perceived value toward cumulative discounts.

Originality/value

This is the one of few studies that investigate (1) price bundling of products from two disparate industries where consumer demands fluctuate, (2) the effects of scarcity in a bundle, and (3) all possible discount messaging in a bundle.

Details

Sport, Business and Management: An International Journal, vol. 11 no. 5
Type: Research Article
ISSN: 2042-678X

Keywords

Open Access
Article
Publication date: 11 January 2021

Oliver Cruz-Milán

The purpose of this paper is to investigate specific marketing mix activities and influencing factors in hotels coping with falling room demand derived from drug cartel-related…

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Abstract

Purpose

The purpose of this paper is to investigate specific marketing mix activities and influencing factors in hotels coping with falling room demand derived from drug cartel-related risk and insecurity.

Design/methodology/approach

A case study research was carried out using semistructured interviews with key informants (hotel managers) in two neighboring destinations at the US–Mexico border, an area where criminal organizations' drug trafficking-related violence has impacted the hospitality industry.

Findings

The research identifies factors that are internal (market segment diversification, type of ownership, magnitude of investments) and external (tourism promotion organizations, media coverage, tourist flow volume) to the firms as they affect their marketing mix implementation.

Research limitations/implications

The research developed a framework to better understand the use of marketing mix practices and influencing factors in criminal insecurity contexts, which could be further studied in other risk and conflict scenarios.

Practical implications

The pricing and communication tactics are employed more intensively, while product-service and distribution channel actions are used to a lesser extent. Greater emphasis should be placed on product-service, distribution and market segment diversification.

Social implications

Considering the positive impacts that tourism and hospitality businesses have on local communities, it is recommended that the hotel sector works together with government and industry associations to improve the safety and security at tourism destinations.

Originality/value

The research extends the extant knowledge in hospitality crisis management by investigating the full marketing mix tactics in hotels at destinations stricken by cartel-related organized crime, an understudied context in the literature.

Details

International Hospitality Review, vol. 36 no. 1
Type: Research Article
ISSN: 2516-8142

Keywords

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