Showing papers in "Cornell Hospitality Quarterly in 2009"
TL;DR: In this article, the authors examine the role that individual unit management plays in this process by looking at how a manager's commitment to service quality and that person's leadership style affect the way frontline employees do their job.
Abstract: One of the continuing challenges in the hotel industry is providing consistent levels of quality service across units. Although recruitment, selection, and training practices are often standardized across units (within a given market), frontline employees' performance varies. This study examines the role that individual unit management plays in this process by looking at how a manager's commitment to service quality and that person's leadership style affect the way frontline employees do their job. The fundamental implication of this study is that managers who are committed to service quality and employ an empowering leadership style can create a transformational climate that conveys their commitment to quality service to their frontline employees. This leads to employees who are more likely to share the organization's values, who understand their role in the organization, who are more satisfied with their jobs, and who perform at a higher level of quality in serving hotel guests.
254 citations
TL;DR: In this article, revenue management is integrated into all aspects of hotel management marketing and operating strategies, including room inventory management, including group business and its ancillary revenues, by considering the interaction of room sales and food and beverage sales.
Abstract: The era has ended when revenue management can stand alone as a tactical approach to room management. With technological and management support, revenue management must be and is being integrated into all aspects of hotel management marketing and operating strategies. Going beyond its role of managing room inventory, revenue management will consider total revenue contributions, including group business and its ancillary revenues. Because prices are essentially transparent, hotels will need to consider customer price elasticity and not simply match competitors' prices, with a goal of optimizing prices. Beyond that, revenue management can be used to manage all of the hotel's revenue streams, in part by considering the interaction of room sales and food and beverage sales. While revenue per available room (RevPAR) has been a good measure of performance, a revenue generation index, which compares competitors' RevPARs, is even more useful. Even more sophisticated is a revenue opportunity model, which monitors t...
187 citations
TL;DR: In this article, the authors identify the underlying dimensions of a guest's hotel experience, using data from a web-based survey of guests at a midwestern hotel and conference center, and find that the dimensions obtained in exploratory Factor Analysis can be replicated by confirmatory factor analysis with the same data set.
Abstract: This article identifies the underlying dimensions of a guest's hotel experience, using data from a web-based survey of guests at a midwestern hotel and conference center. This study finds that the dimensions obtained in exploratory factor analysis can be replicated by confirmatory factor analysis with the same data set. These scale-development procedures result in an eighteen-item index consisting of four factors: environment, accessibility, driving benefit, and incentive. This four-factor structure of Hotel Experience Index also shows evidence of both convergent and discriminant validity.
122 citations
TL;DR: The authors empirically examined the effects of publicly traded U.S. restaurant companies' social responsibility activities on the following two financial performance measures: accounting performance measure and accounting performanc....
Abstract: This study empirically examines the effects of publicly traded U.S. restaurant companies' social responsibility activities on the following two financial performance measures: accounting performanc...
108 citations
TL;DR: In this paper, crisis management, disaster recovery, and organizational continuity are critical areas of competence for managers of individual businesses and entire destinations, for large-scale problems, such as hurricanes and floods.
Abstract: Crisis management, disaster recovery, and organizational continuity are critical areas of competence for managers of individual businesses and entire destinations. For large-scale problems, crisis ...
107 citations
TL;DR: In this paper, the authors examined the pricing, demand (occupancy), and revenue dynamics in the U.S. hotel industry for the period 2001 to 2007, and compared hotels' rate and occupancy.
Abstract: This article examines the pricing, demand (occupancy), and revenue dynamics in the U.S. hotel industry for the period 2001 to 2007. The results of this seven-year study, which compares hotels' rate...
100 citations
TL;DR: In this paper, the authors report the results of a pilot study conducted among hotel employees in Central Florida and find an initial indication of an early warning sign of depression in hotel employees.
Abstract: Given the putative cost of work-related depression, this article reports the results of a pilot study conducted among hotel employees in Central Florida. The study finds an initial indication of a ...
81 citations
TL;DR: In this article, an exploratory study of 36 hotel managers was conducted to find the essential factors to attract and satisfy guests in order to achieve a distinctive and distinctive atmosphere. But, the authors concluded that "attaining a distinctive atmosphere has become a pivotal concern for hospitality managers, since atmosphere is perceived an essential factor to attract, and satisfy, visitors".
Abstract: Attaining a distinctive atmosphere has become a pivotal concern for hospitality managers, since atmosphere is perceived an essential factor to attract and satisfy guests. An exploratory study of 36...
66 citations
TL;DR: In this paper, a survey of 243 hotel managers and executives has identified human resources as the most persistent problem they face in their daily work, and different aspects of the HR issue are discussed.
Abstract: Although economic issues cast a long shadow, a survey of 243 hotel managers and executives has identified human resources as the most persistent problem they face. Different aspects of the HR issue...
62 citations
TL;DR: In this article, the authors used self-service technologies to segment hotel clientele based on demographic and hotel-use characteristics (e.g., desired room type and desired room demographic information).
Abstract: Traditional tools used for segmenting hotel clientele rely on demographic and hotel-use characteristics (such as desired room type). However, with the emergence of self-service technologies and wit...
59 citations
TL;DR: In this paper, the authors identify the circumstances under which customer orientation alone has a higher payoff or when simply investing resources on competitor orientation (monitoring, managing, and outflanking competitors) alone is the better strategy.
Abstract: This study of hotels representing thirty-seven brands from fifty-six countries uncovers the market conditions under which investing resources in specific market strategies leads to higher performance. Specifically, the authors identified, for the first time in an international context, the circumstances under which customer orientation (acquisition, satisfaction, and retention of customers) alone has a higher payoff or when simply investing resources on competitor orientation (monitoring, managing, and outflanking competitors) alone is the better strategy. An additional interesting twist, not shown before to the authors' knowledge, is that in the cases where a customer-based strategy has a higher payoff, focusing on competitors diminishes performance. Similarly, in a market where competitor-based strategy has a higher payoff, a customer focus lowers performance.
TL;DR: The physical attributes or features that signal safety and security are a critical part of the overall "servicescape" of a hotel and help to define the service experience as mentioned in this paper, and an investigation of the s...
Abstract: The physical attributes or features that signal safety and security are a critical part of the overall “servicescape” of a hotel and help to define the service experience. An investigation of the s...
TL;DR: In this article, an analysis of 168 critical incidents of service success or failure for seventeen hotels in Hong Kong found that the most common critical incident involved a hotel employee responding to a guest request.
Abstract: An analysis of 168 critical incidents of service success or failure for seventeen hotels in Hong Kong found that the most common critical incident involved a hotel employee responding to a guest re...
TL;DR: In this paper, the authors propose a revision in the way most spas traditionally have viewed sales, and apply revenue management to spa operations, which requires a revision of the traditional way most spa managers view sales.
Abstract: In principle, spa managers should be able to apply revenue management to spa operations. To do so, however, requires a revision in the way most spas traditionally have viewed sales. Most spa manage...
TL;DR: Compared to hotel frequent-guest programs, airline frequent-flyer programs have gained not only more membership but greater penetration of key groups of travelers, notably, business travelers and h...
Abstract: Compared to hotel frequent-guest programs, airline frequent-flyer programs have gained not only more membership but greater penetration of key groups of travelers, notably, business travelers and h...
TL;DR: An exploratory study of ninety-five hotels that rebranded or rescaled their operations revealed the possibility of long-term financial benefit after the change, but that was followed by a gradual recovery as discussed by the authors.
Abstract: An exploratory study of ninety-five hotels that rebranded or rescaled their operations revealed the possibility of long-term financial benefit after the change. In many cases the hotels saw an initial decline in financial results, but that was followed by a gradual recovery. Hotels that moved upscale generally saw increases in average daily rates. Hotels that merely changed brands without also changing their scale reported no significant change in financial results.
TL;DR: High-performance working practices in the hospitality industry have different applications for internal (full-time) employees and external (part-time, casual) workers and different outcomes for org as mentioned in this paper.
Abstract: High-performance working practices in the hospitality industry have different applications for internal (full-time) employees and external (part-time, casual) workers and different outcomes for org
TL;DR: In this article, a labor scheduling model based on integer programming (IP) is presented to address the staffing and scheduling issues and service standards by maintaining an appropriate ratio of part-time to full-time employees.
Abstract: In labor scheduling, restaurant managers face dual challenges: overstaffing that means excessive labor costs and understaffing that invites the opportunity cost of service errors and lost business. Most operators seek to rely on their personal experience and judgment to determine schedules that are meant to maintain service quality and limit labor costs, but an analysis of one Korean restaurant finds that this goal is elusive. The labor scheduling model based on integer programming (IP) is presented to address the staffing and scheduling issues and service standards by maintaining an appropriate ratio of part-time to full-time employees. Using appropriate constraints, the model was used to generate a schedule for a table service restaurant in Seoul, South Korea, that is affiliated with a global chain. When compared to the existing schedule, the IP-generated schedule helped the restaurant reduce overall labor costs while ensuring appropriate service levels.
TL;DR: In this paper, the mediating roles of two forms of justice between LMX constructs and OCB constructs using the following constructs: perceived contribution and affect, the justice constructs are interactional justice and distributive justice, and the OCB types are those directed toward supervisors and those directed at the organization.
Abstract: In the aggregate, employees' organizational citizenship behaviors (OCBs) promote organizational performance in many ways and thereby gain significance as market competition gets fierce. The purpose of this study is to investigate how the leader-member exchange (LMX) relationships affect the service employee's OCBs. Following other research approaches, the structural equation model presented here hypothesizes the mediating roles of two forms of justice between LMX constructs and OCB constructs using the following constructs. The LMX forms are perceived contribution and affect, the justice constructs are interactional justice and distributive justice, and the OCB types are those directed toward supervisors and those directed at the organization. Based on an analysis of 293 responses collected from fifty-four full-service restaurants in a metropolitan city in South Korea, this study concludes that both forms of LMX significantly influence employees' perceptions of justice (that is, both interactional and dis...
TL;DR: In a 1996 article in Cornell Hotel and Restaurant Administration Quarterly, Michael Lynn introduced the idea that restaurant managers could increase their servers' tips, and thereby reduce turnover, and thus reduce turnover as discussed by the authors.
Abstract: In a 1996 article in Cornell Hotel and Restaurant Administration Quarterly, Michael Lynn introduced the idea that restaurant managers could increase their servers' tips, and thereby reduce turnover...
TL;DR: In this paper, the authors test and calibrate an often repeated assumption about the revenue benefits of reducing dining duration, which is that a reduction in dining duration yields a proportional increase in revenue.
Abstract: This article tests and calibrates an often repeated assumption about the revenue benefits of reducing dining duration. This assumption is that a reduction in dining duration yields a proportional i...
TL;DR: In this paper, the authors investigated the use of hotel trademarks in pay-per-click advertising and found that the abuse is rampant and customers are potentially being diverted to competing websites.
Abstract: Having outlined the legal position in relation to the use of trademarks in pay-per-click advertising, this study investigates trademark use in hotel searches. Using a randomly selected sample of ninety hotel properties worldwide, searches were performed on two leading search engines to investigate whether third parties were using hotel trademarks in their paid placement. Findings indicate that abuse is rampant. While hotels perform well in organic search, they are usually preceded by or surrounded by paid listings abusing their trade names. Customers are potentially being diverted to competing websites, and urgent action is needed to reclaim hotel trademarks in the online search environment.
TL;DR: In this article, a strategic pricing model for service industries that can offer customers enhanced value through lower prices while maintaining appropriate features is proposed, based on a correlation of the correlation of t
Abstract: This study proposes a strategic pricing model for service industries that can offer customers enhanced value through lower prices while maintaining appropriate features. Based on a correlation of t...
TL;DR: In this paper, the authors report that international expansion by Las Vegas casino operators has so far been uneven, notably in Macao, where information on different cultures' understandings of gambling, which is scant, could be instrumental.
Abstract: International expansion by Las Vegas casino operators has so far been uneven, notably in Macao. Information on different cultures’ understandings of gambling, which is scant, could be instrumental ...
TL;DR: This article examined the utility of using self-coaching and upward feedback to enhance the effectiveness of formal training on interpersonal skill, and found that self coaching improves the performance of interpersonal skills.
Abstract: The purpose of this study was to examine the utility of using two posttraining interventions—self-coaching and upward feedback—to enhance the effectiveness of formal training on interpersonal skill...
TL;DR: In this article, revenue management practices for five international markets are analyzed over a period of more than six years, and it is shown that when a weak local currency threatens dollar-denominated earnings, managers can make up for it by increasing ADR without reducing occupancy.
Abstract: This article studies whether foreign exchange risk can be reduced by operational controls. Specifically, revenue management practices for five international markets are analyzed over a period of more than six years. Results show that ADR (average daily rate), RevPAR (revenue per available room), and occupancy improve in weak currency environments to make up for losses resulting from currency translation. The reverse is also true. That is, occupancy declines in strong currency environments to make up for gains in exchange. In other words, when a weak local currency threatens dollar-denominated earnings, managers can make up for it by increasing ADR without reducing occupancy, thereby increasing RevPAR. The result is significantly less exposure to foreign exchange risk than implied by traditional hedging arguments.
TL;DR: In this article, the authors examined how a common metric of revenue performance (RevPASH, or revenue per available seat-hour) is calculated and found that the extent of the inaccuracy is much greater when RevPASH is calculated based on check-open times rather than on the time interval from check open to check close.
Abstract: In this article, the authors examine how a common metric of revenue performance—RevPASH, or revenue per available seat-hour—is calculated. In a simple example, a real restaurant, and an extensive simulation study, the authors find inaccuracies in the existing approaches to calculating RevPASH. However, the extent of the inaccuracy is much greater when RevPASH is calculated based on check-open times rather than on the time interval from check open to check close. Since accurate RevPASH values are important in guiding managers’ revenue-enhancing decisions, the article’s findings have importance for practice. Furthermore, as RevPASH has been a commonly used metric for academic research, the article’s findings are important for those performing research on restaurant revenue management.
TL;DR: The authors predicts that the nine consecutive quarters of declining demand for U.S. hotels that began in Q1 of 2008 will come to an end in the second quarter of 2010, which will bring to a close a recession that lasted for approximately eight quarters, twice as long as the 2001 recession and longer still than the 1990 episode, which lasted for three quarters commencing in Q3 of 1990.
Abstract: In December 2008, the National Bureau of Economic Research (NBER) made the official proclamation that the United States had entered an economic recession in December 2007. As is sometimes the case, U.S. hoteliers began to feel the pain well before most other businesses. According to Smith Travel Research (STR), the U.S. lodging industry first began to show signs of weakness in July 2006, when yearover-year demand levels contracted by 1.4 percent. The following months were volatile—some good, some bad. Total demand declined 1.8 percent in 2008, and STR reports an 8.0 percent decline through June 2009. The September edition of PKF Hospitality Research (PKF-HR) Hotel Horizons calls for a total year decline in demand in 2009 of 6.3 percent. The Moody’s Economy.com forecast issued in July 2009 indicated that the U.S economy would begin to grow again during Q3 of 2009. If that is correct, this will bring to a close a recession that lasted for approximately eight quarters, twice as long as the 2001 recession (which began in Q1 2001) and longer still than the 1990 episode, which lasted for three quarters commencing in Q3 of 1990. Based on the Moody’s Economy.com outlook, PKF-HR forecasts that the nine consecutive quarters of declining demand for U.S. hotels that began in Q1 of 2008 will come to an end in the second quarter of 2010. Given this expectation, what will be the shape of the recovery that follows? We anticipate that the road ahead will take the industry through new territory.
TL;DR: In this paper, the authors analyzed the historical performance of hospitality stocks, taking into account the magnitude and timing of investor capital flows in and out of the hospitality sector using historical data.
Abstract: This article analyzes the historical performance of hospitality stocks, taking into account the magnitude and timing of investor capital flows in and out of the hospitality sector. Using historical...