Abstract
PurposeMarket orientation and positioning have been widely recognized as organizational metrics linked to hotel performance. The purpose of this study is to offer the link among market orientation, positioning and hotel performance in Ghana’s (luxury) hotel sector. It also reports on the joint influence of market orientation and positioning on hotel performance in the same sector.Design/methodology/approachThree hypotheses were investigated on the link between market orientation and hotel performance, positioning and hotel performance, and the joint effect of market orientation and positioning on hotel performance. A survey of star-rated (luxury) hotels in the capital city of Ghana was used. One hundred and five responses were used in the analysis. Descriptive statistics, exploratory factor analysis and hierarchical regression were used to test the three hypotheses.FindingsAll hypotheses were accepted. Market orientation and positioning jointly affect hotel performance, and the study provides hotel managers with suggestions on how to enhance their performance via market orientation and positioning.Research limitations/implicationsMarket orientation, positioning, and performance measures focused on management perspectives without including perceptions of customers.Originality/valueThis study is one of the few attempts to systematically investigate the intertwined concepts of market orientation, positioning and performance in a developing economy hospitality context.
Highlights
Hotels are the most significant and widely recognized variety of overnight accommodation globally (Holloway, 2001)
This study focuses on joint effect of market orientation and positioning on hotel performance using star-rated hotels in Ghana
To understand and test the hypotheses that market orientation influences hotel orientation and performance, positioning influences hotel performance, and the joint effect of market orientation and positioning influences hotel performance, a normality and multipositioning collinearity test, an exploratory factor analysis, summated scales and a hierarchical regression were conducted on the data collected (Hair et al, 2008)
Summary
Hotels are the most significant and widely recognized variety of overnight accommodation globally (Holloway, 2001). Hotels sell offerings that comprise of a mixture of intangible service components and tangible goods components (Tajeddini, 2010). The intangible service components make the hotel service a challenging business to manage (Kuada and Hinson, 2014). The current rate of investment in the Ghanaian hotel sector seems to point to the business opportunities available in the sector (Narteh et al, 2013). International brands like Mövenpick Ambassador, Best Western and Holiday Inn have all pitched camp in Ghana’s hotel sector. With the entry of these international players and more high-rated star hotels, competition in the Ghanaian hotel sector has become more intense (Narteh et al, 2013)
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