Luxury Hotel Industry Research Articles

The impact of emotional perceived value on hotel guests’ satisfaction, affective commitment and loyalty

Purpose This study aims to investigate the impact of emotional perceived value on hotel guests’ satisfaction, affective commitment and loyalty. Design/methodology/approach Data were collected from 348 respondents living in the United Arab Emirates, and hypotheses were tested using AMOS 28 and structural equation modeling. Findings This study’s unique contribution lies in its revelation that emotional perceived value directly impacts guests’ satisfaction, affective commitment and loyalty. Furthermore, it uncovers that emotional-perceived value indirectly influences loyalty through satisfaction and affective commitment. Practical implications This research underscores the importance of hotel managers prioritizing guests’ emotional perceived value in their offerings. Managers can significantly enhance guests’ satisfaction, affective commitment and loyalty by highlighting self-gratification, aesthetics, prestige, transaction and hedonics. Originality/value This study brings a fresh perspective to understanding customer perceived value (CPV). It argues that the mere emphasis on the functional aspect of CPV would likely fall short of fully comprehending specific outcomes of their experience (e.g. satisfaction-dissatisfaction, loyalty, etc.). Assessing the emotional aspect of CPV, known as emotional customer perceived value (ECPV), adds further explanations and sheds light on the understanding of the CPV concept and its impacts on consumers’ experience. Furthermore, this study emphasizes that emotional perceived value is better comprehended as a multidimensional rather than a unidimensional construct. It adds that the concept of customer value as a multidimensional concept is context-specific (i.e. dimensions vary from one service sector to another), providing a unique and valuable perspective for the luxury hotel industry.

Corporate social responsibility impact on customer-based brand equity in the Moroccan luxury hotel context: mediating role of customer value co-creation

Purpose This study aims to examine the impact of corporate social responsibility (CSR) on customer-based brand equity (CBBE), with a focus on the mediating role of customer value cocreation (CVCC). The objective is to understand the direct and indirect links between CSR and the dimensions of CBBE (image, quality, awareness, loyalty) in the context of the luxury hotel industry, thus filling existing gaps. Design/methodology/approach This quantitative study of luxury hotel guests in Morocco used a questionnaire. After a pilot study with 10 professionals, the final version was administered, generating 204 valid responses. Purposive convenience sampling was chosen. PLS analysis was favored. Findings The results highlight the significant influence of CSR on the four dimensions of CBBE. Likewise, CVCC exerts a significant effect on CBBE aspects, except for brand loyalty. CVCC partially mediates the relationship between CSR and brand image, perceived quality and brand awareness. However, it does not have a significant mediating role in the CSR−brand loyalty relationship. Research limitations/implications The study, despite its contributions, is limited to the luxury hotel industry in Morocco, raising concerns of external validity. Future research should diversify service contexts and explore the multidimensionality of CSR. Practical implications Luxury hotel managers should prioritize authentic communication to optimize their CBBE through CVCC. An inclusive and strategic approach to cocreation is essential to strengthen the impact of CSR on CBBE. Integrating CSR into customer touchpoints and human resources policies is crucial. Originality/value This study, to the best of the authors’ knowledge, enriches understanding of the complex interactions between CSR, CVCC and CBBE in Morocco and North Africa. Its originality lies in its exclusive contribution to the region’s marketing literature, broadening the field of knowledge. By exploring these relationships in the specific context of the region, it offers new perspectives to researchers and practitioners interested in CSR, CVCC and CBBE.

Covid 19: Resilience-Building Strategies for Elevating Customer Satisfaction in the Luxury Hotel Industry

Covid 19: Resilience-Building Strategies for Elevating Customer Satisfaction in the Luxury Hotel Industry

Covid 19: Resilience-Building Strategies for Elevating Customer Satisfaction in the Luxury Hotel Industry

The purpose of this study is to investigate the post-COVID-19 expectations of luxury hotel customers and identify the strategies that focused on customer satisfaction and evaluate the resiliency of the luxury hotels. The study utilized SurveyMonkey and email as the primary means of gathering responses. A total of 400 participants were chosen from the sample population for the purpose of conducting the final research, by using the structural equation modeling. The paper conducting an examination into the enduring effects of strategies on customer satisfaction and resilience of luxury hotels might yield new insights that enhance the strategic planning and decision-making processes within the luxury hotel category. The findings from the research pertaining to the influence of room amenities, staff performance, and common space facilities on customer satisfaction, as well as their subsequent implications for hotel resilience in luxury establishments following the COVID-19 pandemic, unveil a number of noteworthy observations.

Passion and burnout in Bangkok’s luxury hotel industry: Investigating obsessive and service-oriented effects

Passion and burnout in Bangkok’s luxury hotel industry: Investigating obsessive and service-oriented effects

Hotel and Manager Characteristics and Technology Orientation Strategy

Management and hotel characteristics can strongly influence the decision to support technology orientation strategy in luxury hotels. In the rapidly changing hotel business environment, a strong technology orientation holds the key to the strategic direction that will lead to sustained competitive advantage. Nonetheless, studies relating technology orientation strategy and manager and hotel characteristics in the hotel industry in Eastern Africa are scare. Based on Resource Based View, and a sample of 247 senior hotel managers, this paper provides an analysis of hotel and manager characteristics and their relationship with technology orientation in the luxury hotel industry in Kenya. The paper uses empirical data and shows that age of hotel (rho=0.14; ρ<0.05) and size of hotel (rho=0.22; ρ<0.05) had a positive correlation with technology orientation in luxury hotels at the 5% level of significance. On the other hand, age of senior managers (rho=-0.13; ρ<0.05) had a negative correlation with technology orientation, while level of education among senior managers (rho=0.14; ρ<0.05) had a positive correlation with technology orientation in luxury hotels. Implications of the findings for hotel management practice and research are provided in the paper.

Narrative Transportation and Trust in Luxury Hotels SNS Marketing: The Moderating Role of Social Interaction

The purpose of this study is to examine the impact of narrative transportation and trust on behavioral intention related to the luxury hotel industry. Data analyses is based on responses from 268 Instagram users who answered an online survey. The conceptual model was evaluated on Smart PLS4 through the PLS-SEM approach. Results indicate the trust in SNS and narrative transportation have a positive influence on e-WOM intention as well as on visit intention. The impact of trust and narrative transportation on visit intention are mediated by e-WOM intention. Empirical evidence supports the moderating role of social interaction.

Social Media Marketing Activities Influencing Brand Equity and Buying Commitment towards Customer Response in the Luxury Hotel Industry

Social Media Marketing Activities Influencing Brand Equity and Buying Commitment towards Customer Response in the Luxury Hotel Industry

Customer satisfaction in Luxury Hotels in Hong Kong: Investigate the role of service quality

Hong Kong is a tourist hub with a famous name tag “Asia’s World City”. Hong Kong attracts variety of consumers from all around the world and the tourism industry needs the research the factors that are affecting customer satisfaction in Hong Kong luxury hotel industry. This study proposed a SEM to find out the relationship among perceived quality, service quality, tangibles, reliability, responsiveness, assurance, empathy that affecting customer satisfaction in Hong Kong luxury hotels. The research framework of this study consist of three constructs including perceived quality, service quality, and customer satisfaction. Seven hypotheses are proposed to study and four hypotheses are accepted. Three hypotheses are rejected and to have no significant relationship with customer satisfaction in this study. At last, the relationship among seven hypotheses effects on customer satisfaction are discussed and suggestions for unsupported hypotheses in context of enhancing customer satisfaction in Hong Kong luxury hotels are discussed as well.

The influence of eWOM on intentions for booking luxury hotels by Generation Y

Electronic word-of-mouth on social networking sites is one of the most effective marketing resources in the lodging industry. Furthermore, Generation Y is becoming an important customer base for the luxury hotel industry and relies heavily on eWOM on social networking sties. By adopting and using four selected constructs (perceived usefulness, enjoyment, subjective norm, and perceived behavioral control) from the extended Technology Acceptance Model and the Theory of Planned Behavior, this study reveals how eWOM on social networking sites influences Generation Y’s purchase intentions when booking luxury hotels. The current study suggests that the usage of eWOM on social networking sites not only helps potential Generation Y customers select suitable luxury hotels but also allows luxury hoteliers to better cater to this growing market segment.

Multisensory marketing in the luxury hotel industry: effects on brand experience and customer perceived value

In the luxury industry, multisensory marketing as a basis for value creation and unique experiences is increasingly gaining in importance. Luxury hotels in particular may apply various sensory stimuli to stand out from competition and provide memorable stays. The study confirms all stated causal relationships between multisensory marketing, brand experience, customer perceived value, brand perception and consumer behaviour, using partial least squares structural equation modelling. The results reveal visual, acoustic and gustatory perception to be the most effective sensory drivers and financial aspects to be the most relevant value driver. The findings further show that multisensory marketing is most effective in creating experiences when linked to relevant values. Finally, brand experience and customer perceived value are most powerful in affecting consumer behaviour via a positive brand perception.

Multisensory marketing in the luxury hotel industry: effects on brand experience and customer perceived value

In the luxury industry, multisensory marketing as a basis for value creation and unique experiences is increasingly gaining in importance. Luxury hotels in particular may apply various sensory stimuli to stand out from competition and provide memorable stays. The study confirms all stated causal relationships between multisensory marketing, brand experience, customer perceived value, brand perception and consumer behaviour, using partial least squares structural equation modelling. The results reveal visual, acoustic and gustatory perception to be the most effective sensory drivers and financial aspects to be the most relevant value driver. The findings further show that multisensory marketing is most effective in creating experiences when linked to relevant values. Finally, brand experience and customer perceived value are most powerful in affecting consumer behaviour via a positive brand perception.

Curating Authentic Hospitality in a Local Boutique Hotel

Hotel A served the boutique hotel segment. Rather than focusing on market segments in Singapore’s hotel chain scale system, the management decided to offer guests an affordable luxury experience via excellent personalized service while capitalizing on the rich and authentic cultural heritage that the hotel offered in terms of history and design. Although Hotel A had won the Best Hotel Service award three years consecutively, it was getting harder to distinguish itself from other boutique hotels and to align itself with the parent company’s (Company A) strategic long-term goals. Mr. Lim had been the manager of Hotel A for five years. He worked up the ranks, learning the ropes and garnering accolades for best service, and management skills. He had earned the respect of his staff as he empowered his staff, empathized with them and walked the talk. Since December 2019, the world had been reeling from the impact of a global pandemic caused by the coronavirus (COVID-19) which was primarily spread through physical contact and respiratory droplets. Most countries implemented very stringent measures to prevent the disease from spreading within its borders. The luxury boutique hotel category in particular had been negatively affected as the hospitality industry focused on people, personalized services and face to face interactions. One prominent change seen as a result of COVID-19 was a change in consumer behavior, influenced by risk perception (Gössling et al., 2020; Kirk & Rifkin, 2020). Guests became more cautious and concerned about safety and hygiene, preferring less human touch during registration and food delivery, and practiced safe distancing from others (Rittichainuwat & Chakraborty, 2009). Millennials had increasingly become an attractive market segment for the luxury hotel industry as they were not price conscious, preferring to “spend tomorrow’s money” and “spend ahead of income” (Wang, Sun & Song, 2011). Furthermore, as they were digital natives, products and experiences which could satisfy their luxury consumptions could be promoted easily via social media marketing. In August 2020, the Singapore government rolled out a S$45 million SingapoRediscovers campaign where Singaporeans were given S$320 million in tourism credits to drive local spending (Straits Times, August 2020). Mr. Lim is in a dilemma. How can he promote Hotel A as the preferred staycation destination to local Millennials without alienating its more traditional clientele and brand image as a heritage hotel catering to foreigners? How should Hotel A provide personalized service and maintain service quality and satisfaction with safe management measures in place in sync with Millennials’ lifestyle?

On the hedonic versus utilitarian message appeal in building buying intention in the luxury hotel industry

The effect of hedonic and utilitarian message appeals in luxury hotel brands using brand luxuriousness index, conspicuous consumption, brand prominence, brand love and patronage intention as variables was tested. It was found that hedonic message appeals enhance luxury hotel brand consumers' perceptions of hotels’ luxuriousness index. Such perceptions have positive impact on brand love and patronage intention among customers who do not expect brand prominence and have lesser interest in conspicuous consumption. This study is the first to distinguish between hedonic and symbolic messages and focus on the differential effect of hedonic versus utilitarian message appeals and its impact on brand love, patronage intention for consumers who prefer low brand prominence and are low on conspicuous consumption orientation. Lack of such distinction among messages that provide symbolic or hedonic cues will fail to provide useful insight on segments of luxury consumers who are directed by self-related versus other-related consumption goals.

Brand tourism effect in the luxury hotel industry

PurposeThis study aims to examine the brand tourism effect observed in luxury hotels. The study assumed that when loyal customers of luxury hotels perceive two different types of non-loyal customers, loyal customers’ perceptions might influence their behavioral intention. In addition, two emotions (i.e. anger and pride) might mediate the relationship between perceptions and behavioral intention.Design/methodology/approachThis study used a scenario-based experimental design. Data from 1,013 responses were analyzed using partial least squares-structural equation modeling.FindingsThe study reveals that when loyal customers view brand tourists, infringement has a positive influence on switching intention, and likability positively effects brand loyalty. This study indicated that loyal customers perceive brand immigrants negatively, whereas brand tourists are comparably positively perceived by loyal customers. Only pride mediates these two relationships, respectively.Originality/valueThe study confirmed the brand tourism effect in luxury hotels by indicating a clearer relation between perception, emotion and behavioral intention. The theoretical implications could suggest insightful guidelines for future studies regarding loyalty in luxury hotels.

The BRAND tourism effect on loyal customer experiences in luxury hotel: The moderating role of psychological ownership

This study applies brand tourism effect to examine the loyal customers' different attitudinal responses caused by two types of non-loyal customers (i.e., brand immigrants and brand tourists) in the luxury hotel industry. The study also investigates the moderating role of psychological ownership on brand tourism effect. Conducting a 2 (types of non-loyal customers) * 2 (psychological ownership) experimental design, the results show that the loyal customers perceive brand tourists more favorably, and their disappointment is the most significantly different emotional response. In addition, the result also finds the moderating effect to be significant, indicating that in a lounge, loyal customers view brand tourists more positively than in restaurant. Lastly, the study also discusses theoretical and practical implications.

The Managerial Study of Pro-Environmental Behavior in Luxury Hotel Industry: An Example of Reducing Disposal Amenities

The appearance of pro-environmental measures has become a manifestation of the global trend in many industries, and hotel management is no exception. The reduction of guest room disposable amenities in hotel operation has seen much improvement and has become more effective in recent years. These are a commonly encountered practical measured toward lower carbon emissions, and consist of eco-friendly materials and supplies. However, it is not immediately clear how measures for the promotion of such efforts can be effectively taken by hotel residents. Drawing upon the notion of pro-environmental behavior from the hotel management side, this study investigated the reduction of guest room amenities, its acceptance from by guests, and the hotel’s business performance obtained from data provided by luxury hotels in Guangzhou, China. To this end, a two-way ANOVA statistical model was utilized. In addition, this study empirically demonstrated primary results and implications, and suggests cost-saving methods for hotel operations.

Stigma Transfer, Social Evaluations, and Category Dynamics in the U.S. Luxury Hotel Industry

This paper focuses on category dynamics resulting from changes in the moral character of a category. We explore the process of stigma transfer from individual category members to the overarching ca...

Cross-Cultural User Experience of Luxury Hotel Websites: A Conjoint Analysis

The website of luxury hotel brands is regarded as a great platform for marketers to create positive brand identity. The underlying architecture of information, as well as the design of graphics, navigation system, and user interface could have an influence on user experience with a hotel brand. Utilizing a conjoint design, this research assessed user preferences of three website design factors: background/font color, human image use, and navigation system. The preferences of two cultural groups—that of the Chinese and American consumers—were compared and contrasted. The findings of this study suggest that users from both the US and Chinese cultures have similar tastes for hotel website design features. They both prefer photos with no human images, dark background with light font, and a linear navigation system. The convergent tendencies of the two cultural groups and practical implications for the luxury hotel industry were discussed.

What do Chinese consumers want? A value framework for luxury hotels in China

PurposeIn the past decade, the luxury hotel industry in China has experienced rapid growth. To date, few scholars have investigated what consumers value about their experiences in luxury hotels generally, let alone specifically in the Chinese context. As a result, little is known about what Chinese consumers value in luxury hotel services. To bridge this gap, this paper aims to (1) develop a five-factor luxury hotel value framework from a value co-creation perspective; and (2) assess the relationship between these value dimensions and Chinese consumers’ intentions to stay in luxury hotels.Design/methodology/approachIn total, 492 Chinese luxury hotels consumers participated in the study. A confirmatory factor analysis was used to validate the proposed measurement model, and a hierarchical linear regression was used to test the relationship between luxury hotel value and purchase intentions.FindingsThe authors assessed five dimensions of luxury hotel value in the current study: utilitarian value, symbolic value, hedonic value, relational value and financial value. The regression results indicate that for Chinese luxury consumers, hedonic value is the most important predictor of luxury hotel purchase intentions, followed by financial value and utilitarian value. Interestingly, symbolic value and relational value do not significantly influence Chinese consumers’ luxury hotel purchase intentions.Practical implicationsLuxury hoteliers in China can use the value framework when making decisions about market segmentation and brand positioning and to gain a deeper understanding of what motivates target consumers’ purchase intentions. They can also use such knowledge to tailor their product offerings to the preferences of target consumers.Originality/valueThe current study is the first empirical test of a luxury hotel value framework from a value co-creation perspective in the Chinese market. Taking Chinese luxury consumers’ unique characteristics into consideration, the authors further investigate the relationships between various dimensions of luxury hotel value and Chinese consumers’ purchase intentions.