Examination of Operational Strategy of International Tourist Hotels

Abstract

To gain a competitive edge in the dynamic landscape of the global tourist hotel industry, strategic development is important. Thus, we scrutinized the strategic management plans to diversify hotel business models, focusing on the role of Chief Executive Officers (CEOs). We conducted qualitative research with a snowball sampling method and interviewed ten experienced CEOs who were engaged in the industry. All interviewees possessed a minimum of 14 years of expertise and experienced a minimum of two types of business models. They experienced the industry as entry-level employees and various tasks such as room or food and beverage (F&B) management. Four used to work for six hotels and four for globally franchised hotels. The research result revealed that CEOs must have self-learning and a proclivity to undertake challenges in diverse regions and distinct systems. Moreover, CEOs need to align their operational strategies with the eight indices specified by the Tourism Bureau. The business model of the global hotel franchise is attributed to its cost-effectiveness, profitability, and autonomous decision-making capabilities. The management team with industry expertise is advantageous for the hotel. Eight operational strategies were proposed to mitigate potential damages arising from external factors. Franchise hotels exhibited commendable accommodation rates and profitability compared to their independent counterparts. To alleviate interdepartmental conflicts, well-organized supporting systems must be implemented.