Academic Articles in Hospitality Sales (Feiertag Collection)

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https://hdl.handle.net/10919/78367

This is a collection of peer-reviewed academic research in the area of Hospitality Sales that may be of interest to hospitality industry managers and executives.

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Now showing 1 - 20 of 30

Are customers’ reviews creating value in the hospitality industry? Exploring the moderating effects of market positioning
Neirotti, Paolo; Raguseo, Elisabetta; Paolucci, Emilio (Elsevier, 2016-12)
Although user-generated reviews on social media are greatly influencing competition and customer purchase patterns in the hospitality industry, empirical research has so far marginally investigated whether hotels are able to appropriate the economic value that the use of social media features can bring. In order to fill this gap, this article uses panel data from 2004 to 2012 on a sample of 240 small and medium-sized hotels for which we have collected data on profitability and 50,115 user-generated reviews on TripAdvisor, one of the most popular and largest online community for travelers. The results from fixed effects regression models show that online ratings from user-generated reviews on TripAdvisor have a positive effect on hotel revenue growth that is outweighed by a negative effect on gross profit margins. Thus, the increasing importance of user-generated reviews in online communities for travelers is shifting hotel competition from unit profit margin to volumes and to higher room occupancy rates, with online retailers capturing most of the value created in online transactions through social media features and with a limited effect brought on net profitability. However, hotels with higher star-rating, with a lower degree of local competition and localized outside popular destinations were found to obtain more benefits from online visibility on their gross and net profitability. Based on these results, managerial implications discuss how hotels should use social media features according to a strategic view based on pursuing the horizontal and vertical differentiation of their services in an attempt to create more economic value from their online visibility and to protect profit margins from the intermediation in their customer relationships.
Assessment of Energy-Saving Practices of the Hospitality Industry in Macau
Wang, Xu; Wu, NaiQi; Qiao, Yan; Song, QingBin (MDPI AG, 2018)
Macau is building a world tourism and leisure center. In the context of flourishing hospitality development, energy issues have attracted more and more attention in recent years. On the basis of the field survey of 28 hotels, an evaluation index system is built to assess the status of energy-saving and environmental protection practices in the hospitality industry in Macau. This system is built by selecting some credits from Leadership in Energy and Environmental Design (LEED) and adding several new indices according to the social and economic characteristics of Macau. The results show that the hotels have made significant efforts to improve the energy efficiency in recent years. A total of 71.4% of the hotels have formulated and implemented the energy-saving and environmental protection programs. However, there is an apparent gap in energy and environmental performance between different star-level hotels. The higher is the star-level of a hotel, the higher enthusiasm on energy-saving a hotel has, e.g., 63.6% of the 5-star hotels carried out the carbon auditing and energy management measures, but there is no 2-star hotel that adopted them. The energy-saving performance can be great improved if more efforts are made in the future, especially for the 2-star hotels. Finally, we put forward some suggestions for how to bridge this gap and present a possible roadmap for the further improvement of energy efficiency of the hotel industry in Macau. The results from this work are useful to help the government and hotel managers to take actions for improving the energy utilization and efficiency of the hospitality industry in Macau.
Assessment of the Lodging Industry Profitability Performance: Invest in Independent or Chain Ownership?
Kapiki, Soultana; Mu, Lei; Fu, Jing (Turizam, 2014-03)
The purpose of this article is to evaluate the economic results of the independent hotels in comparison with the chain hotels as well as to propose suggestions for the viability of the lodging industry. The survey took place in Greece concerning the period 2008-2011 and it was conducted via on-line questionnaires among 165 hotel units. The average means of efficiency and profitability indicators of the sampled hotels are benchmarked and the data of 2009 are utilized to further compare their ratios by using ratio analysis. Furthermore, ANOVA test is used to conduct mean difference analysis in order to identify the differences among the means along with their associated variables between independent and chain hotels. The main findings of the survey show that, generally, the independent hotels tend to be more profitable than chain hotels. The sector’s good practices that have been identified through this study are highlighted as suggestions for the viability of the lodging industry both in Greece and worldwide. Based on the findings of the survey, investors and hotel operators may have a clearer picture of whether it is preferable to invest their funds in the development of an independent hotel or they should turn to chain ownership.
A Decision Model for Hotel Revenue Management Displacement Analysis for Transient Room Demand vs. Group Room Demand
Morse, Stephen C.; Beckman, Eric (Journal of Hotel & Business Management, 2016)
Revenue management in the hotel industry involves measuring the trade-off of revenue of one type of business over another type of business. One of the major decisions involves choosing revenues generated by transient (individual) room demand vs. revenue generated by group room demand. Traditionally, this decision was relatively straight forward as one would compare the ADR generated revenue for transient vs. group demand, and chose the type of business that maximized revenue. The decision model developed in this study shows there are many additional variables beside ADR generated revenue to consider with this business decision and trade-off of transient vs. group demand. Incorporated into this decision model are additional variables important to the decision like ancillary non-room revenue such as catering, food and beverage sale, meeting room rental, audio/visual services and other activities.
Design and Implementation of Mathematical Model for Revenue Management in Hospitality Industry
Ebiendele E, Peter; Ebiendele, Helen (Journal of Hotel & Business Management, 2018)
Revenue management is the art and science of maximizing revenue under various variable conditions. It is a management tool that has the objective of increasing sale revenues by manipulating the prices at which fixed products in the hotels are made available for sale in relation to the current and forecasted demand. This paper focus on the design and implementation of mathematical model, of the type of linear programming, which will help the revenue managers in the hospitality industry to manage their revenue to enable the hotel’s maximized their contributions. This model becomes necessary today in the hospitality industry, because of the complex decisions facing the hotel’s manager as regarding what product to produce, quantity of the product and services to produce such product and so on. How this model could be applied in the food and beverages department in the hospitality industry was demonstrated. The paper also illustrated the skill of who is to be a revenue manager in the hospitality sector. The paper concludes and recommends that if the model is adopted, it will improve the sector revenue generation among others and reduce wastage, if not totally eliminated in the foods and beverages departments.
Determinants of Tunisian hotel proﬁtability: The role of managerial efﬁciency
Aissa, Sami Ben; Goiaed, Mohamed (Tourism Management, 2015)
Using ﬁnancial data derived from 27 hotel companies operating in Tunisia, the paper reports an analysis of hotel proﬁtability. Using Data Envelopment Analysis (DEA) and the Return On Assets (ROA) analysis managerial efﬁciency is shown to be important when holding geographical and operating contracts as constants. Nonetheless these two aspects have important implications for hotel proﬁtability. Hotel size, level of indebtedness, exposure to crisis events and levels of managers' education are also inﬂuential. The implications for management tenure and optimal age of a hotel are discussed
Do hotel managers have sufficient financial skills to help them manage their areas?
Burgess, Cathy (International Journal of Contemporary Hospitality Management, 2007)
Purpose – The purpose of this article is to investigate whether managers in hotels have sufficient financial skills to help them effectively manage their areas, within the context of a changing industry. Design/methodology/approach – Additional findings from a series of recent research projects amongst hospitality financial controllers have been utilized to give an alternative viewpoint to those found from literature. Findings – A review of literature identified a strong need for managers to have financial skills, but there is little recent evidence as to whether they actually hold these skills. Hotels are changing fast with pressure to maintain profits resulting in new approaches to management, but there is concern that the development of systems has meant an over-reliance on these to control costs. Financial controllers consider that departmental and general managers do not have enough business skills – and finance skills in particular – to optimize costs and revenues and hence maintain profits. Research limitations/implications – The findings were based on a fairly small sample of respondents, utilizing projects designed for alternative purposes. However, the findings raise questions as to the trust that hotel companies have placed in their systems and approaches. Practical implications – If the concerns expressed by controllers are not addressed by hotels, then inevitably standards of control will suffer, costs will rise and hence profitability will be negatively affected Originality/value – There has been little recent consideration of the realities and the impact of systems changes on management, the majority of earlier projects considering the need for skills rather than the actual possession of these amongst managers
Dynamic pricing strategies: Evidence from European hotels
Abrate, Graziano; Fraquelli, Giovanni; Viglia, Giampaolo (International Journal of Hospitality Management, 2012)
How much do hoteliers actually make use of dynamic pricing strategies? We collected data on the price of a single room booked in advance (from three months to a single day), from almost 1000 hotels in eight European capital cities. Pricing strategies were analyzed by means of descriptive statistics, box plots and econometric panel data techniques. The empirical results show that the inter-temporal pricing structure primarily depends on the type of customer, the star rating and the number of suppliers with available rooms.
Dynamic room pricing model for hotel revenue management systems
Aziz, Heba Abdel; Saleh, Mohamed; Rasmy, Mohamed H.; ElShishiny, Hisham (Elsevier, 2011)
This paper addresses the problem of room pricing in hotels. We propose a hotel revenue management model based on dynamic pricing to provide hotel managers with a flexible and efficient decision support tool for room revenue maximization. The two pillars of the proposed framework are a novel optimization model, and a multi-class scheme similar to the one implemented in airlines. Our hypothesis is that this framework can overcome the limitations associated with the research gaps in pricing literature; and can also contribute significantly in increasing the revenue of hotels. We test this hypothesis on three different approaches, and the results show an increase in revenue compared to the classical model used in literature.
Evaluating performance in the hotel industry: An empirical analysis of Piedmont
Santoro, Gabriele (Journal of Investment and Management, 2015)
The hotel industry is a key sector in the tourism industry because it is essential for the supplying of all other tourism services and it is the first service demanded by tourists who reach the destination. To assess hotel’s performance appears a hard task, because of the presence of many factors to consider, economic but also less tangible. The aim of the research is to verify the correlation between performance and its determinants in the context of the Piedmont hotel industry, through valuating a sample of 112 hotels of Piedmont. More in particular, the study in estimates whether variables as stars rating, dimension and added services provided are correlated to performance, measured by Rev Par (revenue per available room), a performance metric typical of the hotel industry. To reach these goals, the research starts with a literature review, on hotel industry in general and on performance evaluation methods more used in hotel industry. Subsequently, it will be explained the methodology and the assumptions. Finally, it will be provided results discussed on a managerial perspective, useless for management to improve quality and performance.
Factors Enhancing Economic Performance In Hospitality. The Paradigm Of Greek Hotel Companies
Kapiki, Soultana (Journal of Tourism, Hospitality & Culinary Arts, 2012)
Hotel managers focus on identifying, creating or developing competitive advantages that can be utilised in order to improve the company’s economic performance and bottom line. This paper attempts to identify those internal factors having enhanced the financial performance in the Greek hospitality sector during 20082010. The survey was conducted in Greek high-class hotel companies and reveals that the enhancement of a hotel’s economic performance can be achieved by the following key factors: exceptional services; well-trained and highly motivated associates; contemporary managerial approaches; pricing tactics maximising the revenue per room; investments in new technology systems; organization of activities keeping the guests (and the revenues) within the premises; application of sustainable practices; niche marketing and advertising so as to attract new guests; and, formal cooperation with other tourism stakeholders. The findings of this study are suggested as best practices for the hospitality industry.
The Financial Impact of Joining the Chain and Improving Hotel Rating: A Case Study in Russia
Krengel, Lina (Scientific Research Publishing, 2016-09-07)
The objectives of this study were to consider the development of hotel chains in Rus- sia and, further, to analyze the financial advantages or disadvantages of joining as part of the largest hotel chain’s membership, as well as to analyze the financial activ- ity of the company before and after joining the chain. The theoretical foundation of this research was based on overall theories of economic development. This research was conducted within a case study framework. The research instruments used were interviews of hotel employees for thematic analysis, and chronological analysis of the hotel’s financial performance during two periods: 2010-11 and 2012-13. Findings of the research indicate that joining a well-known and large hotel chain as well as an improved hotel ranking has a significant financial impact on the hotel studied within this case study. It certainly improved the image of the hotel in the market, increased its reputation, and made it more recognizable.
Financial Stability and Investment Attractiveness of the Hotel Business Enterprises: Theoretical Aspects and Practical Analysis
Baranova, Natalia; Bogatyreva, Liudmila (International Journal of Social Sciences, 2017-09)
The article discusses some methodological issues of evaluating financial stability and investment attractiveness of the hotel enterprises. The essence and the contents of the tasks dealing with the analysis of these categories, the known methods, the procedure of calculation of the indicators and their meaning are considered. The aim of this work is to analyze financial stability and investment attractiveness of the hotel business enterprises and to consider the theoretical aspects of this problem. For achieving this goal, methods of comparison and statistical methods were applied. The thesis has been formulated that for attracting financial resources an enterprise (organization) should have relatively stable values of a number of indicators, which confirm the sustainability of their development. The figures were calculated in dynamics from 2011 to 2015 basing on the hotel business reports data, with the help of the methodology of assessing financial stability and investment attractiveness of the company INEC.
Group Sales and Marketing in Convention Hotels
Gregory, Susan; Kline, Sheryl; Breiter, Deborah (Taylor & Francis Group, 2008-10-10)
The goal of hotel sales and marketing is revenue generation. The methods employed by group sales and marketing professionals have evolved overtime to incorporate an array of technological innovations. The purpose of this research is to ascertain the perceptions that convention hotel sales and marketing professionals have about Internet and Web integration in the group sales process. The findings indicate that Internet and Web based marketing tools have become an integral part of hotel sales and marketing activities, though convention hotel managers do not necessarily attribute an increase in revenue to these activities.
Hotel chains: survival strategies for a dynamic future
Richard, Brendan (Emerald Insight, 2017)
Purpose – The purpose of this paper is to better understand the future of hotel chains by exploring the evolving expectations of guests, potential innovations, emerging opportunities, and likely future scenarios. Design/methodology/approach – A literature review consisting of current events, industry reports, and recent trends is utilized to summarize and categorize the challenges and opportunities facing hotel chains. Findings – The future of hotel chains will be driven by the convergence of an increasingly competitive landscape, along with a diverse evolving customer base seeking out unique and individualized experiences. In order to survive in the future hotel chains will have to: listen to and learn from guests incorporating big data insights, go beyond segments to provide personalized services, continuously develop the brand through signature experiences, utilize collaboration and open innovation to maintain an edge in technology and service, and through total revenue management generate ancillary revenues and maximize guest spend. Originality/value – This paper provides a comprehensive set of recommendations to hotel chains highlighting opportunities related to: financing, revenue generation, personalization, and co-creation.
Hotel Overbooking and Cooperation with Third-Party Websites
Dong, Yufeng; Ling, Liuyi (2015)
Hotels cooperate with third-party websites to enhance their competitive position and attain sustainable development in the era of e-commerce. Furthermore, hotel managers overbook to hedge against last-minute cancellations and customer no-shows. This paper discusses pricing and overbooking strategies of a hotel in the context of cooperation with multiple third-party websites and analyzes how these strategies influence the cooperation process. The increase in profits resulting from the overbooking strategy is also examined. A model of a Stackelberg game between the hotel and third-party websites and a Nash game among the third-party websites are developed to analyze the process. Results indicate that the compensation coefficient has a slight influence on hotel pricing strategy, but causes a sharp decrease in overbooking level. As the hotel demands to lessen the probability of denying under higher compensation rate, the third-party websites would exert fewer sales effort to reduce the demand for online customers. Results also show that under a given market demand, hotel effort only serves to redistribute market shares among the hotel and third-party websites, without influencing hotel pricing and overbooking decisions. Specifically, the market shares of the third-party websites decrease in the effort level of the hotel resulting from an increase in the hotel market share. Finally, in the numerical example where one hotel and two websites are analyzed, hotel overbooking strategy improves hotel profit by 4.20%, whereas profit improvements for Web sites 1 and 2 are as high as 5.26% and 5.21%, respectively. Managerial implications of the study are also provided.
Hotel Sales Decline and Opportunities For a Turnaround: The Case of a Selected Hotel Chain in Swaziland (2008 – 2010)
Kanokanga, Farayi Phillip; Vengesayi, Sebastian; Mumbengegwi, Patricia; Kazembe, Cloetilda; Karigambe, Pauline (IOSR Journal Of Humanities And Social Science (IOSR-JHSS), 2014-01)
The study sought to explore the causes of sales decline and possibilities of a turnaround at some selected hotel chain in Swaziland between July 2008 and December 2010. In this study 5 senior managers, 12 middle level managers, 5 junior managers and 2 ordinary employees were used as research subjects. Fifty per cent of them were male and 42 per cent female. The study sought to facilitate the organisation to appreciate and fix the causes of sales decline; the hotels’ personnel to be better motivated, and hotel guests to enjoy improved customer care. The study showed that stiff competition was the main cause of sales decline. Economic hardships, and low personnel motivation also played a part. The study recommended that staff motivation be taken more seriously. The use of the world’s best practices was recommended as well as further research on casino operations.
Hotels and Halal-oriented Products: What Do Hotel Managers in Slovenia Think?
Šuligoj, Metod; Maruško, Helena (De Gruyter Open Sp. z o.o, 2017)
Background and Purpose: Tourists from the Islamic world are significant stakeholders in the tourism market. The purpose of this paper is to identify the key aspects of halal tourism in connection with the hotel industry. Furthermore, we want to determine whether hotel managers are familiar with halal certification and on what basis they would opt for it. Design/Methodology/Approach: The research focuses on halal goods, services, and facilities, in general, and specifically in Slovenian hotels; concepts, contemporary trends, and the situation in Slovenia are presented. In response to the literature review, we applied the analysis of the factor loadings to define the important factors that influence the decision-making process; by applying PCA, we reduced the dependent variable to a single factor (although predictions were slightly different). Findings: The most important elements in the adoption of the certificate are the simplicity and efficiency of the procedure itself and the fact that the process does not require major financial investments. The element that significantly influences the managers’ decision-making process is the possibility of adjusting to the standard of the certificate. Conclusion: The paper’s main contribution is to deepen the perspective of the development of tourism in an area that remains a relatively undeveloped and unknown niche within the Slovenian tourism/hospitality industry but very promising in the global context.
Internal Communication Function and Hotel Productivity–A Comparative Study
Yildiz, Özay (American international journal of contemporary research, 2015)
The accommodation service production process starts with personal interaction and communication. As important as guest – employee communication is; access and distribution of market and organization related information is essential in organizational coordination and maintaining competitiveness. This efficiency of internal communication function has a direct and indirect impact on organizational productivity; as fast process of relevant data results in better decision making. Internal communication also helps in adapting to corporate culture and raising employee morale, thus increasing service quality and guest satisfaction. In the present study, there is a general consensus on the impact of internal communication on hotel productivity. It is evidenced that as the hotel grows in capacity, more complex internal communications systems, including upward and diagonal communication and heavy use of communications technology, co-exist, employees take on more initiative and processing of performance data accounts for the majority of communicational actions. At the other end of the scale, a smaller hotel mainly makes use of downward and informal communication and a managerial use of initiative.
The irruption of Airbnb and its effects on hotel profitability: An analysis of Barcelona’s hotel sector
Aznar, Juan Pedro; Sayeras Maspera, Josep Maria; Rocafort, Alba; Galiana, Jorge (Intangible Capital, 2016)
The aim of this study is to analyze the existence of a relationship between the presence of nearby substitute products, mainly Airbnb flats or rooms, and the effect on the revenue and profitability of hotels.

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