Abstract
This paper analyzes the self-positioning of international tourist hotels (ITHs) in Taiwan at the corporate strategy level and posits two types of positioning strategy-room revenue-oriented and food and beverage (F & B) revenue-oriented - to examine which one is suitable for ITHs. Hotels located in Hualien and in scenic areas have a significantly negative effect on the ratio of F & B revenue to total revenue, implying that hotels in these areas should be room revenue-oriented. Local tourists have a significant positive impact on the ratio of F&B revenue to total revenue, whereas Asian tourists have a significant negative impact on the ratio. Moreover, the operation-year and room price have significantly negative effects on the ratio of F & B revenue to total revenue, suggesting that historic hotels should adopt room revenue-oriented positioning and improve their service quality so as to be able to increase the room price. The number of restaurants has a positive effect on the ratio of food and beverage revenue to total revenue. Therefore, the hotels adopting F&B revenue-oriented positioning should offer diversified types of restaurants for various tourists.
Highlights
According to the long-run forecast in the Tourism 2020 Vision by the World Tourism Organization (UNWTO, 2008), the number of total international tourists globally is expected to reach nearly 1.6 billion by 2020
The average percentage of food and beverage (F&B) revenue occuping total revenue is 50.25%, which means on average F&B revenues are slightly larger than room revenues
The number of restaurants has a significantly positive impact on the ratio of F&B revenue to room revenue, and so we suggest that F&B revenue-oriented hotels should offer various types of restaurants to satisfy different customers’ demand
Summary
According to the long-run forecast in the Tourism 2020 Vision by the World Tourism Organization (UNWTO, 2008), the number of total international tourists globally is expected to reach nearly 1.6 billion by 2020. This demonstrates an average annual growth rate of 4.1% over the period 1995-2020, with 1995 as the base year, and a 6.5% growth rate in East Asia, which owns the second highest growth rate in the world. The Taiwan Tourism Bureau (TTB) Yearbook (2010) indicates that the top three main purposes of visiting Taiwan are natural landscape, festivals, and gourmet.
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