Limited-service Hotels Research Articles

Bridging the Gap: Smile in Any Language

This case focuses on English language preparation in the hospitality industry. Recruiting and retaining employees is an important component of any human resource plan. Safe and effective operations are a measure of employee satisfaction. The increased sourcing of new employees in limited-service hotels that require minimum levels of English proficiency has increased steadily. Incorporating English Language Acquisition (ELA) into a training and development plan presents unique challenges not addressed in the hospitality curriculum nor in many management training programs. This case deals with English language proficiency in a select-service hotel from the perspective of a General Manager.

What to Sell and How to Sell Matters: Focusing on Luxury Hotel Properties’ Business Performance and Efficiency

Due to service product characteristics and a mix of complex sales, it is crucial for hotel firms to efficiently design limited physical spaces that serve multiple purposes to optimize revenue and maximize profit. Since luxury hotel properties have different operation strategies than limited-service hotels, their operational efficiency should be a reference during strategic decision-making processes. Primary research purpose is to identify the most efficient operation model for luxury hotel properties. The study computed operation efficiency scores using the data envelopment analysis approach to rank the property efficiency of 37 fully equipped luxury hotels in the United States. Each property can utilize slack analysis to discover a strategic benchmarking company (best efficient frontier) and intuitive strategic recommendations and gain superior input and output productivity. Tobit model analysis provides supplemental understandings regarding the additional operational factors impacting luxury hotel properties’ efficiency score variations. Operating efficiency was found to be achieved by multiple operating inputs and influenced by relative price, fixed costs, and management systems. Theoretical comprehensiveness of luxury service mix has been empirically tested by highlighting efficiency as a key measure. In addition, RevPAR’s ratio on TRevPAR further highlights the importance for luxury hotels to increase non-room sales and revenues to accomplish efficiency.

How and Why Does Franchise Ownership Affect Human Resource Practices? Evidence from the US Hotel Industry

This study investigates the relationship between ownership form and human resource (HR) practices in a franchise system. Using data from a unique establishment-level survey of a US-based limited service hotel chain, the author examines how HR practices vary between franchisee- and company-owned hotels, and among franchisees with diverse ownership structures. Consistent with agency theory predictions of franchisee profit motives and free-riding behavior, franchisee-owned hotels are associated with lower investments in HR practices compared to company-owned hotels. The results of this study suggest that ownership structures influence HR investments.

Social servicescape’s impact on customer perceptions of the hospitality brand – The role of branded social cues

• Social cues are significant information sources to embody hospitality brands. • Branded customer-customer cues foster favorable brand perceptions. • Employee-employee cues can moderate service interaction effects on brand perceptions. • Conceptual fluency mediates aforementioned social cue effects on brand perceptions. This research examines how the social servicescape (i.e., employee-customer, employee-employee and customer-customer) impacts brand-related outcomes via branded social cues. Informed by theories related to cue consistency and conceptual fluency, results from three experimental studies conducted across sectors and scales of hospitality businesses (i.e., luxury hotel, high-end restaurant and limited-service hotel), indicate that branded social servicescape cues have direct, indirect and interactive effects on brand-related outcomes. In luxury contexts, when the brand’s personality is absent in employee-customer social cues, the negative effects were buffered if brand personality is reflected in employee-employee social cues. Conceptual fluency mediated the relationship between branded employee-customer social cues and brand-related outcomes, which was moderated by branded employee-employee social cues. Conceptual fluency also mediated the relationship between branded customer-customer social cues and brand-related outcomes. This research sheds light on how hospitality firms can leverage branded social cues to enhance customer evaluation of the hospitality brand.

The Moderating Role of Hotel Type on Advertising Expenditure Returns in Franchised Chains

This study contributes to a deeper understanding of financial returns from the advertising of hospitality services. Specifically, we investigate how different types of franchised hotel outlets, each targeting a different customer segment, moderate the effects of various advertising expenditures on unit-level profitability. Our unique data set allows us to examine the impact of unit-level advertising expenditure allocations using line items from the profit and loss statements of more than 9,000 franchised U.S. hotel properties from 2007 to 2018. We consider the effects of investing in varied advertising activities, including the franchise advertising assessment, loyalty programs, local sales force, and local media advertising. As hypothesized, we find differential effects of advertising for outlets targeting different customer segments. Relative to traditional full-service hotels, those focused on destination-driven customer segments (i.e., destination hotels) and price-sensitive customer segments (i.e., limited-service hotels) benefit less from investing in the franchise advertising assessment, loyalty programs, and local media advertising. We also find that local sales force expenditures positively moderate performance for destination hotels. We highlight the moderating effects of hotel type as a key situational factor and provide more nuanced insight into managing the tension arising from advertising allocation at franchised hotel chains.

The effects of the minimum wage on the operating performance of hotels in the U.S.

The economic effects of the minimum wage have been the focus of ongoing contradictory debates among policymakers and researchers. This study finds a positive effect of the minimum wage on the operating profitability of hotels in the U.S. However, the pricing practices of full-service hotels are dissimilar to those of limited-service hotels. Although the burden of the minimum wage is substantial, full-service hotels can spread the weight onto other departments, while limited-service hotels mainly rely on rooms revenue. Thus, the effects of the minimum wage on room price (average daily rate; ADR) are more substantial at limited-service hotels than at full-service hotels even though operating profitability (gross operating profit per available room; GOPPAR) is not substantially different between them. Eventually, increased minimum wage can play a beneficial role not only for the hotel industry but also for local society, since minimum wage employees take home a larger salary.

Change Management Communication: The Role of Meaningfulness, Leadership Brand Authenticity, and Gender

As hospitality firms face increasing demands that require continuous change, it is imperative to design change management processes that allow for effective communication of change initiatives. This study of 235 employees examined the effects of organizational change communication 1 month after the change message was delivered at the annual leadership conference of a well-known U.S.-based limited-service hotel chain. In hospitality organizations, successful change management is impossible without employee engagement. However, employees’ sensemaking of the organizational change message may encourage or hinder their receptivity to change. Findings showed that while positive appraisal of conference message meaningfulness positively influenced employee work engagement, perceptions of leadership brand authenticity had a stronger impact. Moreover, employees bundled message meaningfulness and leadership brand authenticity perceptions for greater work engagement, which is linked with job satisfaction and service climate evaluation. Female attendees were highly influenced by leadership brand authenticity perceptions, driving stronger job satisfaction and stronger service climate. However, for male attendees, meaningfulness of the conference message had a significant impact on engagement. Thus, hospitality managers’ ability to adjust organizational change communication through message meaningfulness and authentic leadership branding may assist in securing the desired outcomes of change.

Antecedents of customers’ acceptance of artificially intelligent robotic device use in hospitality services

ABSTRACT This study examines the antecedents of customers’ willingness and objection to use artificially intelligent robotic devices in hospitality services (full-service and limited-service hotels). Drawing on the Artificially Intelligent Device Use Acceptance (AIDUA) theory, this study validates and extends the AIDUA framework in the hospitality service setting. The results point to the applicability of the AIDUA framework, suggesting that hospitality customers’ intention to the use of artificially intelligent devices are influenced by social influence, hedonic motivation, anthropomorphism, performance and effort expectancy, and emotions toward the artificially intelligent devices. Findings further suggest that compared to limited-service hotel customers, full-service hotel customers rely less on their social groups when evaluating artificially intelligent robotic devices; their emotions toward the use of artificially intelligent devices are less likely to be influenced by effort expectancy; and their emotions cause less impact on their objection to the use. Theoretical contributions and managerial implications of this study are discussed. Limitations and future study recommendations are provided.

Leading a successful hotel: A look at the general manager’s ability to utilize multiple leadership styles

Abstract Using a case study format the researcher examines the leadership styles of three ultra-successful general managers (GMs) in select- and limited-service hotel environments. The study’s findings identify and characterize specific situations in which each GM was able to: 1) effectively utilize their primary leadership style and 2) intuitively shift to a non-prevalent style to accomplish a specific task. Applications of various aspects of leadership styles observed in the field were compared with the results of a formal leadership assessment. The cross-case analysis produced three dominant themes: 1) the GMs under study balanced the needs of their followers and guests; 2) while the GMs took three separate approaches to developing their followers, each built a cohesive management team with loyal employees; and 3) the GMs shifted leadership styles to help employees learn from their mistakes. Each GM utilized all aspects of their primary leadership style while also employing secondary styles when needed.

Impact of job satisfaction and job stress on employees’ life in Mumbai’s hospitality sector

Purpose Employee stress and job satisfaction are significant issues in the hospitality industry. Moreover, employee stress has cost implications on the stakeholders, i.e. employers and employees alike. There is inadequate empirical evidence that could shed light on job stress and burnout issues of hotel employees with reference to India. Also, the nature and level of hospitality employee stress is not fully understood. Thus, the purpose of this paper is to examine the impact of job satisfaction and job stress on the life of employees in the hospitality sector in Mumbai. Design/methodology/approach Data were collected from a total of 510 respondents (23 for inductive and 487 for the deductive study) from six five-star category hotels in Mumbai. It utilizes a sequential mixed-method approach to measures the study variables through phenomenography and then validates their causal relationship through partial least squares structural equation modeling using Smart PLS-SEM. Findings In the inductive analysis it was found that “work related” factors such as unsafe working conditions, work load, relationship on the job were the most prominent sources of stress for the respondents. In the deductive analysis the causal relationship between job satisfaction, job stress and stress impact verified through Smart PLS-SEM turned out to be significant. It could be inferred from the results that job satisfaction negatively influences job stress and job impact. Similarly, job stress positively influenced stress impact among the hotel employees. Research limitations/implications The results of the current study should be interpreted with caution. First, the current study only includes self-reporting stress levels. Direct observation was not feasible, since it is subjected to the researchers’ bias. The sample in this study did not include employees of limited-service hotels. As limited-service hotels may have different requirements, challenges and culture for employees than full-service or five stared hotels, thus the findings of the study may not be generalized to limited service hotels. Practical implications The study has dual implications. First, similar research interventions through the mixed-method approach must study the causal relationship between job satisfaction, job stress and stress impact by effectively exploring the participants “lived experience.” Second, employers must validate customer feedback to evaluate employee job performance. Originality/value This is the first study to explore interrelationships between the three important variables, namely, employees’ job satisfaction, job stress and its impact on the life of employees in the hospitality industry using the sequential mixed-method approach. The study findings open new avenues for future research using structural equation modeling, thus representing an important contribution of the present study.

Categorical differences of hotel brand personality

PurposeThis study aims to differentiate the brand personality of four basic hotel categories (e.g. limited-service, selected-service, full-service and luxury hotels) to draw an overall landscape of the lodging industry on symbolic attributes.Design/methodology/approachAn online survey was conducted to assess the brand personality of eight popular hotel brands competing in the US market (two brands for each price category) by using Aaker’s (1997) brand personality scale. The categorical difference in brand personality was compared at both of the dimensional and individual trait level.FindingsThis study draws a picture of brand personality for four prevailing hotel categories in the US market. It suggests exciting luxury hotels, sincere select-service hotels and rugged limited-service hotels, but no distinctive personality for full-service hotels. This study positions the pros and cons of each hotel category. For instance, it shows at the dimensional level, full-service hotels advance select-service hotels in excitement but fall behind in sincerity. At the individual trait level, full-service hotels strike customers as contemporary, up-to-date and good-looking, but disappoint customers on the features like honest and wholesome.Practical implicationsThis study informs hotel brand companies and hotel investors with the pros and cons of each hotel category to assist them to improve their marketing or investment strategies.Originality/valueAlthough brand personality has been often used to assess hotel brand’s difference, it has been rarely used to capture the categorical difference. This study adds new insights to hotel banding practice by comparing different categories on symbolic attributes.

The effect of hospitality conference messaging on employee job responses

Despite the prevalent practice of organizing costly annual leadership conferences by hospitality organizations, little is known about the impact of such conferences on employees’ job outcomes. This study is the first to examine the effectiveness of conference messages on attendee-employee job response. Data was collected using self-administered questionnaires from 235 leadership conference participants including corporate employees and hotel general managers of a well-known US-based limited-service hotel chain. Based on signaling theory, the results indicated that in the relatively less distorted signaling environment of the annual leadership conference, when a signaler (corporate leadership) sends an observable and strong signal (conference message) to a receiver (conference attendee) it positively and significantly influenced employee engagement, service climate, job satisfaction, and organizational commitment. Statistically significant differences were found between first-time and repeat conference attendees, indicating stronger results overall for first-time attendees.

Analysis of satisfiers and dissatisfiers in online hotel reviews on social media

Purpose The purpose of this study is to analyze online hotel reviews produced by customers to identify and compare factors known as satisfiers and dissatisfiers based on Herzberg’s two-factor theory. This approach was applied to compare full-service and limited-service hotels, which can show different levels of customer expectation. Design/methodology/approach A content analysis of 919 satisfaction- and dissatisfaction-indicating reviews of 100 hotels in both full-service and limited-service hotel segments in New York City on Trip Advisor was conducted. Findings Results show that satisfiers and dissatisfiers in full-service hotels were distinct, with the exception of two common service-related factors, namely, “staff and their attitude” and “service”. On the other hand, “staff and their attitude” and four room facilities-related factors, “room cleanliness/dirtiness”, “bed”, “bathroom” and “room size”, were revealed as common satisfiers and dissatisfiers in limited-service hotels. To fulfill customer satisfaction and resolve dissatisfaction in both full-service and limited-service hotels, satisfiers and dissatisfiers should be highlighted according to the hotel class; the most critical factor is “staff and their attitude”. Practical implications Analysis of online hotel reviews provides understanding of customers’ satisfiers and dissatisfiers, and the results are very useful to hotel management. Therefore, hotel operators should monitor electronic word-of-mouth, recognizing and acting upon previous and current customers’ satisfactory and unsatisfactory reactions. Originality/value As technologies such as social media develop, customers are increasingly sharing their satisfactory and unsatisfactory experiences on consumer-generated online review sites. These have become a major source of information not only for customers deciding on a hotel stay but also for hotel managers trying to understand their customers and competitors.

The Effect of Cost of Living on Employee Wages in the Hospitality Industry

This study examines the effect of cost of living (COL) on employee wages in the hotel industry. Although prior research clearly indicates that COL and wages are positively related, there is a lack of research explicitly considering the specific nature of the relationship between COL and wages, and potential moderators to the relationship. Using a dataset containing information on 97 jobs over 67 cities, our study shows that while there is a positive effect of COL on wages, the adjustment is not equal in magnitude to the difference that the COL levels would indicate. Furthermore, the effect of COL decreases as the average wage for the given job increases. We also show differences in COL’s effects for full-service versus limited-service hotels. We illustrate the implications of our findings by showing predicted wage rates for four jobs in five different cities, at both full-service and limit-service hotels. The study has implications for research, particularly for future work on COL and compensation. The findings also have important implications for practice, and may be particularly useful when managers need to set pay levels when local market data are unavailable.

The antecedents of customer satisfaction and dissatisfaction toward various types of hotels: A text mining approach

Customers’ online reviews play an important role in generating electronic word of mouth; these reviews serve as an online communication tool that highly influences consumers’ demand for hotels. Using latent semantic analysis, which is a text mining approach, we analyze online customer reviews of hotels. We find that the determinants that create either customer satisfaction or dissatisfaction toward hotels are different and are specific to particular types of hotels, including full-service hotels, limited-service hotels, suite hotels with food and beverage, and suite hotels without food and beverage. Our study provides a clue for hoteliers to enhance customer satisfaction and alleviate customer dissatisfaction by improving service and satisfying the customers’ needs for the different types of hotels the hoteliers own.

The Limited Service Hotel in South Africa: The Growth of City Lodge

A critical competitive strategy for the growth and expansion of large hotel chains is the pursuit of market segmentation. This article investigates one aspect of market segmentation and the restructuring of the South Africa hotel sector, namely the emergence of the limited service hotel. The growth of the limited service hotel segment of the South African hotel industry is analysed through a case study of the strategic development and evolution of City Lodge Hotels which pioneered this market niche in Africa. Close linkages are disclosed between the limited service segment and the growth of business tourism in South Africa’s major urban centres.

Determinants of customer loyalty and purchasing behavior for full-service and limited-service hotels

This study investigated factors that influence consumer purchasing decisions for two hotel segments: full-service and limited-service. Results from an online survey indicated that full-service hotel guests were more likely to be reward program members and be emotionally attached to their preferred brand. Price was the most important factor for limited-service guests’ purchase decisions, while both price and utility were important for full-service guests. Limited-service guests had lower switching costs, that is, they required less of a discount to switch to a non-preferred brand than full-service guests. The findings have implications for hotel pricing and marketing strategies.

The Continuing Evolution of the U.S. Lodging Industry

Although the U.S. lodging industry as a whole has grown substantially in the past twenty years, a notable shift has occurred in the distribution of rooms. Long-standing chains have been eclipsed by newer brands, and most of the growing brands operate midscale limited-service hotels or upscale and above. Midscale hotels with food and beverage and economy chains, as well as independents, have seen reductions in market share and absolute room sales, even though these groups all have more rooms to sell. The lesson is clear: hotel brands must constantly reinvent themselves and work to appeal to new demographic groups.

Wage Differentials in the Lodging Industry

ABSTRACT Salary compensation programs are widely used as a tool to attract, retain, and motivate employees in the hotel industry. The development of a sound compensation plan is a critical component of any successful business. This study investigated the pay differential from different perspectives by using the data collected by the California Hotel and Lodging Association (CHLA), the largest state level hotel association in the United States. The results indicated that full service hotels offer higher base pay in positions such as General Manager, Resident Manager, and Executive Housekeeper as compared with limited service hotels. When accounting for hotel size only, hotels with more than 300 rooms offered higher base pay than their counterparts in several but not all managerial positions. The findings serve as a reference for human resources administrators in the state of California to develop their pay system. Pay differential rates were calculated to see the wage gap between different managerial positions. The results also provide a base salary reference to those looking for a job in the lodging industry.

Hotel investment risk: What are the chances?

So, what is riskier: investment in a limited service hotel, full service hotel, serviced apartments/extended stay or shared ownership property? Should a mortgage of a limited service hotel be structured in a similar way to that of a full service hotel or other type of hotel asset, or should some distinctions be considered given the nature of each asset class?