Browsing by Author "Mattila, Anna S."
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- The Debate Regarding Profitability: Hotel Unit and Hotel Brand Revenue and Profit RelationshipsO'Neill, John W.; Mattila, Anna S. (Journal of Travel & Tourism Marketing, 2006)The research note explores a debate in the hotel industry regarding the relationship between hotel RevPAR and profitability, a debate around which there is a great degree of “noise.” Using a sample of 1,954 actual hotels for which both top line and bottom line indicators were available for the same year, it is concluded through this statistical analyses that while hotels with higher revenue, and particularly higher room revenue, have a higher NOI in dollars, they do not necessarily have a more profitable business model in terms of NOI percentage. Also, brand level analyses is presented.
- Does advertising spending improve sales performance? [Summary]Josiassen, Alexander; Mattila, Anna S.; Assaf, A. George (Virginia Tech, 2015-07)Hotel managers and investors commonly analyze the impact of advertising spending on firm performance. This paper investigates such an impact using a comprehensive framework incorporating the moderating effects of hotel size and star ratings.
- Hotel revenue management and the Internet: The effect of price presentation strategies on customers’ willingness to book [Summary]Noone, Breffni M.; Mattila, Anna S. (Virginia Tech, 2009-06)A decision that is intrinsic to the application of hotel best available rate (BAR) pricing is how to present the BARs for individual nights within a multiple-night stay to prospective hotel guests. The study discusses two alternative price presentation strategies, a blended and a nonblended rate approach, and examine their effect on customers’ willingness to pay in the context of Internet-based reservation requests.
- Luxe for less: how do consumers react to luxury hotel price promotions? The moderating role of consumers’ need for status [Summary]Wan, Yang; Lu, Zhang; Mattila, Anna S. (Virginia Tech, 2016)As an emerging distribution channel, online discount websites are gaining popularity among luxury hotels. However, little guidance on the effectiveness of such price promotions in luxury hotels is provided in the extant literature. Building on the status consumption theories, we examine the joint effects of price promotions and need for status (NFS) on consumers’ attitudes toward the hotel as well as their intentions to return.
- The relationship of sales and marketing expenses to hotel performance in the United States [Summary]O'Neill, John W.; Hanson, Bjorn; Mattila, Anna S. (Virginia Tech, 2008-05-28)While hotel organizations are investing considerable sums of money for marketing at the unit level, research investigating the relative benefits of the different areas where those funds can be invested is lacking. This exploratory study endeavors to fill that void. Since different types of hotels have different operating characteristics, this study examines marketing expenditures for various hotel tiers, using the Smith Travel Research chain scale categorizations. The study finds that marketing expenditures have differential effects according to the type of hotel and the particular type of marketing expenditure. These analyses explore implications of various types of marketing expenses on both hotel unit revenue and profitability.
- Strategic Hotel Development and PositioningO'Neill, John W.; Mattila, Anna S. (Cornell University, 2006)A study of more than nineteen hundred U.S. hotels for the years 2002 and 2003 found that a hotel’s net operating income percentage is most closely tied to its occupancy, although average daily rate (ADR) has a strong influence, as does market segment (also known as chain scale), the age of the property, and brand affiliation. A hotel’s size (that is, number of rooms) and location (e.g., urban or highway) also influence net operating income (NOI), but a hotel’s region does not significantly affect NOI percentage. The year 2002 data particularly show the importance of heads in beds. Hoteliers cut ADR heavily in that recession year, and those hotels that maintained strong occupancy were the ones that enjoyed strong NOI. While resorts and urban hotels generated the highest NOI in raw dollar volume, economy hotels had the highest NOI percentage and midscale hotels with food and beverage service (F&B) had the lowest NOI percentage.
- Why do we buy luxury experiences?: Measuring value perceptions of luxury hospitality services [Summary]Mattila, Anna S.; Yang, Wan (Virginia Tech, 2015-11-11)The luxury segment of the hospitality industry has experienced substantial growth in the past decade. Unfortunately, the notion of perceived luxury values has received scant attention, and there is a lack of a valid framework to capture consumers' value perceptions in the context of luxury hospitality services. Using luxury restaurant as an example of luxury hospitality services, this paper aims to establish the structure of luxury hospitality values and their measures and to investigate the relationship between luxury hospitality values and purchase intentions.