Luxury Hospitality Research Articles

BALANCING TRADITION AND INNOVATION: ASSESSMENT OF NEW LUXURY HOSPITALITY BUSINESS MODELS AND THEIR IMPLICATIONS ON 5-STAR HOTELS IN SWITZERLAND

The global luxury travel market is in a constant state of flux, and traditional players have to adapt to the rising challenges in various areas of their business model. As new players emerge, using technology and the global reach of the Internet and social media to reach out to a discerning group of travelers, they speak to the changing expectations and behavior of international consumers. Our study will shed light on these consumption and travel patterns, on ways new disruptors in the field of luxury hospitality successfully differentiate themselves from their more traditional competitors and on the implications this will have on the business models of five-star hotels in Switzerland. While limited in scope, this study will provide insight relevant to academics and professionals in the field of luxury hospitality.

Social media engagement and organic post effectiveness: A roadmap for increasing the effectiveness of social media use in hospitality industry

ABSTRACTThe present study assessed the social media use behavior of luxury hospitality facilities and offers suggestions to improve organic post effectiveness. All five-star tourism facilities operating in Turkey were incorporated into the study and publicly available post data on Facebook accounts of 441 facilities (out of a total of 612) were examined in the high tourist season (August) for one month. Data on 2,012 Facebook posts were obtained manually and filtered down to 1,847. The collected post data were subsequently coded using a content analysis form and analyzed via ordinal regression. The results highlighted the positive effects of interactive content and vivid content as well as the significance of the content type in achieving higher interaction among followers. The facility location and category (hotel, holiday village, thermal hotel) also emerged as significant factors affecting follower interactions.

Examining consumers’ luxury hotel stay repurchase intentions-incorporating a luxury hotel brand attachment variable into a luxury consumption value model

PurposeLuxury consumption research has focused more on the consumers of goods than services, despite the trend that consumers are more interested in luxury services, such as luxury hospitality services, than ever before. Additionally, the results regarding the factors that can influence consumers’ luxury service product purchase intentions can be further tested. The purpose of this research is to examine the factors that contribute to consumers’ luxury hotel stay repurchase intentions, to further develop the luxury hospitality service consumption literature and to identify implications for practitioners to consider.Design/methodology/approachTo contribute to the luxury consumption literature, this research incorporates a “luxury hotel brand attachment” variable into a luxury consumption value model to examine consumers’ intentions to repurchase luxury hotel stays when traveling for tourism purposes. The authors draw on a survey of over 450 luxury hotel consumers.FindingsThe findings confirm that luxury hotels’ perceived functional value, hedonic value and symbolic/expressive value affect consumers’ emotions, which in turn affects their luxury hotel attachment and repurchase intentions. In addition, luxury hotel attachment moderates the influence of emotion on repurchase intention.Design/methodology/approachLuxury hotels need to review their customers’ emotions during their stay and their attachment with the hotel. These factors can influence customers’ repurchase intentions. To stimulate customers’ emotions, luxury hotels need to offer functional value (e.g. attentive service staff), hedonic/expressive value (e.g. position as a form of self-indulgence) and symbolic value (e.g. conspicuous lobby). However, managers should know that having superior perceived functional value does not influence customers’ repurchase intentions directly. These characteristics may be commonly shared by most luxury hotels. Furthermore, they do not need to be too worried about providing financial value (e.g. value-for-money).Originality/valueThis study conceptualizes tourists’ luxury hotel stay intentions by examining the influence of perceived luxury value (i.e. functional value, financial value, hedonic value and symbolic/expressive value), tourists’ emotions and luxury hotel brand attachment. In addition, this research explores how luxury hotel brand attachment can moderate the relationship between consumers’ emotions and their repurchase intentions. Several implications of the study are identified, and avenues for future research are suggested.

Managing CSR in Croatian Hospitality: The Case of Luxury Boutique Hotels

Despite the vast research in the field of Corporate Social Responsibility (CSR), little has been done to analyze luxury hospitality. The overall image that emerges from literature is negative, presuming that hotels use CSR often as greenwashing or marketing tool. This study is not about its procedures, it goes one step further, putting participants in the spotlight. Both guests and hotel workers are involved in the research through interviews (group interviews and in-depth interviews with hotel managers). One of the authors was involved as participant observant and interviewer/moderator. The analysis of field work conducted in a couple of boutique luxury hotels in Croatian coastline shows diametrically opposite results. Having regard that this is an exploratory study, the intent was not to generalize but to provide an insight into better understanding of how guests’ expectations change the hospitality industry and managerial challenges during that process. This project will contribute as a relevant starting point for future researchers in the area of sustainability in luxury hospitality.

Workers in the luxury hospitality industry and motivation – the influence of gender, age and departments

This research was conducted to find out whether demographics such as age, gender and working within different departments have an influence on the motivational factors of workers in the luxury hospitality industry. Questionnaires were filled out by 39 employees from the luxury five-star XYZ Hotel situated in an Italian city. In this questionnaire all the participants had to rank the motivational factors on a Likert scale. This study found, by using the ANOVA statistical test, that there was only a relation between age, the opportunity for advancement and sympathetic personal help. This study also found that appreciation for a job well done was the most important motivational factor, whereas the opportunity for advancement was ranked as least important. Moreover, each age group, gender and department is motivated by different factors. It was notable that previous research showed similarities with the current research. However, there were also various differences noticed. XYZ Hotel can use this research to get a better insight into the motivational factors from its workers, and better motivation strategies can be developed. Moreover, this research can be duplicated within other segments of the hospitality industry.

Why do we buy luxury experiences?

Purpose The luxury segment of the hospitality industry has experienced substantial growth in the past decade. Unfortunately, the notion of perceived luxury values has received scant attention, and there is a lack of valid framework to capture consumers’ value perceptions in the context of luxury hospitality services. Using luxury restaurant as an example of luxury hospitality services, this paper aims to establish the structure of luxury hospitality values and their measures and to investigate the relationship between luxury hospitality values and purchase intentions. Design/methodology/approach A survey questionnaire was developed to test the proposed luxury value framework. Confirmatory factor analysis and hierarchical linear regression were used to test the hypotheses. Findings Four luxury restaurant value dimensions including functional value, hedonic value, symbolic/expressive value and financial value were identified. The study results further reveal that a consumer’s purchase intention is influenced primarily by hedonic value, followed by functional value and financial value. Interestingly, unlike in the context of luxury goods, the purchase of luxury restaurant services is not substantially influenced by symbolic/expressive value. Practical implications Hospitality firms catering to the affluent might use the luxury value framework to better understand what drives their customers’ purchase intentions, and use such knowledge to create new services or to improve current product offerings. In addition, luxury hospitality companies can use this luxury value framework to position their brands/products. Originality/value To the best of the authors’ knowledge, this study is the first that empirically tests a luxury value framework in the luxury hospitality context and investigates the relationship between luxury hospitality values and purchase intentions.

The Impact of Status Seeking on Consumers’ Word of Mouth and Product Preference—A Comparison Between Luxury Hospitality Services and Luxury Goods

Despite the rapid growth of the luxury hospitality market, academic research has largely neglected the differences between luxury hospitality services and luxury goods, as well as the role of status seeking on luxury consumption. Relying on the status consumption and experience recommendation theories, the authors examine the combined effects of consumer characteristics (need for status) and product type (hospitality services vs. goods) on consumers’ word-of-mouth intentions. The results suggest that parvenus, who are high in need for status, are more likely to talk about their luxury goods purchases than patricians, who are low in need for status. More interestingly, both parvenus and patricians indicate equally strong intentions to spread positive word of mouth on luxury hospitality purchases. This study also extends the experience recommendation theory and reveals that parvenus are less likely to choose luxury hospitality services than patricians to advance their happiness.

A study on consumer perception of luxery destination in Turkey

Luxury consumption has an increasing trend despite the recent global economic crisis. Luxury tourism and luxury hospitality are among the leading categories that drive luxury consumption. The definition of luxury as well the luxury tourism destinations is not a constant and may vary from an individual to another. The destination to be travelled is one of the important criteria determining luxury perceptions. In this study, consumers’ luxury destination perceptions are sought to be determined in order to set a foundation to further develop upon in luxury destination studies that are in scarce supply in Turkey. This study area offers Turkey, which targets to achieve higher levels of tourism revenues in the next decade an important opportunity to realize this goal. The conspicuous luxury destinations and non-conspicuous destinations are determined by a two-stage survey study. The three conspicuous destinations appeared as Bodrum, Antalya and Cesme as the outcome of the analysis carried out.

Five star hotels of a Multinational Enterprise in countries of the transitional periphery: A case study in human resources management

The paper examines the application of human resource management (HRM) practices by a Multinational Enterprise (MNE) whose operations extend from unexplored post-Soviet countries’ transitional periphery economies to advanced economies. By involving hotels of a global luxury US chain in Azerbaijan (Caucasus) and Kyrgyzstan (Central Asia), this in-depth case study focuses on the labour-intensive hospitality industry which, although being relatively neglected by mainstream research, is among the first movers in new markets through the setting of business infrastructure and then leisure tourism. Through Whitley's dimensions of employer–employee interdependence and employee delegation, comparisons highlighted few differences between properties operating in the particular transitional periphery economies and those in a developed country (Germany) owned by the same chain. On the basis of corroboration obtained through a multiple case study methodology, dissimilarities identified were in terms of the flexibility of employment, outsourcing and dismissal procedures; however, despite socio-economic differences across nations, it is argued that luxury hospitality MNEs are able to maintain an overall uniform implementation of HRM policies and practices regardless of locale through a “geocentric” approach as illustrated by Perlmutter (1969) in his seminal work.

Do affluent customers care when luxury brands go mass?

Purpose– This paper aims to examine the joint effects of product type (hospitality services vs goods) and consumers’ need for status (low/Patricians vs high/Parvenus) on consumers’ attitude change toward their favorite luxury brands. As an ever increasing number of customers can now afford luxury products, it is important to understand how affluent consumers react to the less affluent mimicking behaviors.Design/methodology/approach– In all, 265 luxury consumers with annual household income of more than $100,000 and experiences of luxury consumption in the past three months were recruited. A 2 (product type) × 2 (need for status) factorial design was used to test the hypotheses.Findings– This study demonstrates that when faced with mimicking behaviors by less affluent consumers, Parvenus exhibit more negative attitude toward their favorite luxury goods brands than luxury hospitality brands. Conversely, Patricians exhibit similar levels of attitude change across the two types of luxury brands.Practical implications– The findings suggest that luxury hospitality companies may find it easier to expand to less affluent markets than their luxury goods counterparts, in particular when the majority of target consumers are Parvenus.Originality/value– To the best of the authors’ knowledge, this study is the first to examine consumers’ reactions to mimicking behaviors by the less affluent in the context of luxury hospitality services, and it adds to the knowledge on the joint effects of product type and status seeking on luxury consumption.

Jumeirah Group: STAY DIFFERENT™

Subject area Brand strategy, marketing strategy, service marketing, hospitality management and international marketing strategy. Study level/applicability Post-graduate-level students; practitioners from the hospitality sector, brand management, corporate social responsibility (CSR) and the arts and culture field may also benefit from the case. Case overview Jumeirah Group is a luxury hospitality company that is implementing a global brand strategy after developing a strong-regional reputation. Jumeirah's strong cultural alignment to its Dubai heritage in the form of its hallmarks and communication tag line “Stay Different” is being translated into events, activities, sponsorship and more importantly in terms of service to create a symbolic and experiential brand strategy. For Alice Royton, the Director of Branding for Jumeirah Group, the dilemma was how to maintain the thrust forwards as a top luxury brand and keep brand synergy especially as Jumeirah was increasing its portfolio and the competitive arena heats up in the international market place. Expected learning outcomes Creation of stakeholder value, brand strategy looking at various brand levels, using arts and culture as part of CSR initiative; communication strategy, emotional touch points and moment of truth as part of interactive service strategy; CRM and loyalty. Supplementary materials Teaching notes.

The business of place: networks of property, partnership and produce

The paper examines one of Australia’s most successful luxury hospitality businesses, Peppers Hotel Trust. It focuses on the Trust’s flagship property The Convent at Peppertree a hotel, restaurant and winery complex located in the heart of Pokolbin in the Hunter Valley of New South Wales, Australia’s most visited wine-tourism district. Against the familiar economic accounts which frame Peppertree as a valuable piece of real estate and the product of an unerring entrepreneurial vision, it is recast here as a more precarious network in which the complex threads from which it is woven are simultaneously social and material; configured by the intimate social relations of marriage, friendship and business partnerships and the material fabric of buildings and gardens, wines and foodstuffs through which these relations take and hold their shape. We trace three pathways through the Peppertree network – the social relations of the business ‘partnership’, the ‘Convent’ building which anchors the business in place; and the ‘gastronomic landscape’ from which the restaurant at Peppertree sources local produce. These pathways open up some of the multifarious ways in which knowledge and agency are distributed through the network and enable us to admit new possibilities for financial story-telling; the spatial complications of production and consumption and the situatedness of our own research practice and account.