Abstract
The main purpose of this paper is to examine the effects of service facilities on performance within the hotel industry. Its unique contribution is the use of national-representative secondary data on the hospitality industry in Thailand, as a case of a major tourist destination country. Covering 2,627 hotel observations, our estimated regression indicates that service facilities affect native guests and foreign guests differently, which can lead to different strategic actions for each group. Among all kinds of service facilities, providing internet service seems to be the greatest contribution to hotel performance. Therefore, in terms of managerial implications, hotel managers should make providing a sound internet connection a priority in order to ensure the successful short-term and long-term performance. As for social implications, especially among small and medium-sized hotels, improving hotel performance by upgrading service facilities is another important tool in promoting tourism as a poverty reduction strategy.
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