Hotel Performance Research Articles

The Effect of Organizational Innovation Mediates between Knowledge Management Capabilities and Hotel Performance: A Conceptual Analysis

The mediation relationship of organizational innovation (OI) between knowledge management capabilities (KMC) and hotel performance (HP) in Malaysia is the focus of this study. According to the World Tourism Organization (2018), around 1.245 billion foreign tourists visited the world in 2016, and the business is expected to generate trillions of dollars in revenue. Unfortunately, this industry has been impacted by the COVID-19 pandemic, which began in early 2020 but has since slowly recovered since 2022 (UNWTO, 2022). To survive in the cut-throat climate, hoteliers in the tourism sector must adopt the prevailing fashion. As a result, hoteliers must equip their staff with the necessary knowledge of infrastructure and processes to handle organizational innovation to ensure they can perform and survive. Nonetheless, a large number of them continue to resist knowledge management adaptation as a creative organization. This initial stage of the conceptual paper is the development of knowledge management, organizational innovation and hotel performance. The data were collected from selected hotels among their top management such as chief executive officers, general managers, managing directors or department managers that represent three-star to five-star hotels in Malaysia by using simple random sampling from the list provided by the Ministry of Tourism, Art and Culture of Malaysia. The result can be expected to assist organizations including hoteliers to sustain competitiveness by having knowledge management capabilities and organizational innovation in the market.

The Effect of Human Resource Practices on Hotel Performance during Crisis: A Case Study of Star-Rated Hotels in Mombasa, Kenya

Purpose: Star-rated hotels play a pivotal role in the global economy, contributing significantly to international tourism, job creation, and fostering cross-cultural exchanges. These establishments are luxurious havens and symbols of excellence and diplomacy, promoting economic growth and development, attracting foreign investment, and serving as ambassadors of local culture. In Kenya, star-rated hotels are essential contributors to the national economy, promoting sustainability and wildlife conservation. While these hotels have traditionally thrived due to Kenya's vibrant tourism sector, the industry faces an ever-present threat of crises. Therefore, this study, anchored in the Resource-Based View (RBV) theory analyzed the effect of human resource practices on the performance of hotels in Mombasa County during crises.
 Methodology: This research employed a Covariance-Based Structural Equation Modeling (CB-SEM) approach, well-suited for assessing direct and indirect associations among observed and latent constructs. The study utilized an ex post facto research design to investigate the impact of specific Human Resource Management (HRM) practices on the performance of star-rated hotels in Mombasa County, Kenya, particularly during crises. Structured questionnaires were meticulously administered to 198 management staff members working within star-rated hotels in Mombasa County. This population was chosen due to its critical role in hotel operations, allowing the research to gain comprehensive insights into the relationships under examination. The response rate, approximately 90%, was considered practical and representative of questionnaire-based research. Data were analyzed using descriptive and inferential analysis techniques and presented in tabular format.
 Findings: The study indicated that Talent Retention and Training exhibited a statistically significant positive effect on hotel performance, with a substantial path coefficient of 0.619. Crisis Communication and Leadership also contributed significantly to hotel performance, showcasing a positive and statistically significant path coefficient of 0.355. On the other hand, Resource Management and Adaptability did not exhibit a statistically significant direct relationship with hotel performance, as indicated by a non-significant path coefficient (p = 0.607). The robust positive relationships discovered between Talent Retention and Training, Crisis Communication and Leadership, and hotel performance align harmoniously with previous research findings. These results underscore the critical roles these factors play within the hospitality industry. Investments in talent management and effective crisis management strategies are vital for a hotel's success. The non-significant relationship between Resource Management and Adaptability and hotel performance challenges conventional wisdom but emphasizes the importance of considering the specific contextual nuances.
 Recommendations: In conclusion, the study demonstrates that Talent Retention and Training, as well as Crisis Communication and Leadership, significantly contribute to the performance of star-rated hotels in Mombasa County, Kenya. These findings underline the need for hoteliers to prioritize investments in talent management, crisis management, and leadership skills. While the relationship between resource management, adaptability, and hotel performance appears more complex, further research is required to unearth any potential indirect effects or contextual nuances.

Augmenting hotel performance in Malaysia through big data analytics capability and artificial intelligence capability

PurposeAt the forefront of current research is the investigation of how big data analytics capability (BDAC) and artificial intelligence capability (AIC) can enhance performance in concert. Therefore, current study intended to conduct more deep research into emerging phenomena and attempts to cover the gap by exploring how entrepreneurial orientations (EO) emphasize the use of two emerging capabilities under the moderating role of environmental dynamism which in turn augment co-innovation and hotel performance.Design/methodology/approachData were collected from four-star and five-star hotels located in Kula Lumpur and Langkawi in Malaysia. A total of 260 responses were obtained from IT staff and senior managers with the assistance of a Manpower agency for data analysis. The hypotheses were examined by analyzing the data using PLS-SEM technique through Smart PLS 3 software.FindingsThe result revealed that EO has a positive and significant effect on co-innovation (CIN). Additionally, the BDAC and AIC have been tested and proven to be potential mediators between EO and CIN. Also, environmental dynamism as moderator has positive and significant effect on BDAC and co-innovation performance, however, not significant impact on AIC and co-innovation performance. Lastly, findings displayed positive and significant moderated mediation impact of environmental dynamics on BDAC and CIN with hotel performance, but not significant influence on AIC and co-innovation with hotel performance. For theoretical corroboration of the research findings, the current study integrated EO, resource-based view theory and contingent dynamic capabilities (CDC), because neither single stance can explicate an extant research framework.Practical implicationsThis study anticipated the several implications for the entrepreneurs of hospitality industry. Managers are recommended to invest in the entrepreneurial traits of the employees/organizations and make strategic readjustment of their capabilities for sustained business performance.Originality/valueThe study goes beyond the normal inquiry by investigating moderated mediation impact of environmental dynamism between two emerging capabilities, co-innovation and hotel performance relationships. Another novelty of this study is to culminate the exploitation and adoption of emerging IT-based capabilities in cross domains of management, entrepreneurship, information systems management within the hotel industry.

Balancing short-term gains and long-term success in lodging: The role of customer satisfaction and price in hotel profitability model

This study examines the relationship between revenue and profit drivers and long-term financial performance in the hotel industry based on 17-years data (2004–2020) of six US hotel chains. The analysis creates, tests, and analyzes a cross-level model that examines the complex endogenous relationships, underlying long-term financial performance of hotels. Specifically, we examine the interaction of room price (ADR) and customer satisfaction (ACSI) within a sales-volume-driver framework that impacts financial performance through profitability, measured at both the operating and accounting levels. This study seeks to advance our understanding of these relationships, their characteristics, and their implications for long-term financial performance in the hotel industry. The findings reveal that customer satisfaction is more important than price in achieving long-term financial success in the hotel industry, whereas room nights sold is significant positive driver of all performance levels.

The importance of supervisor support to improve employee performance and retention in 5-star hotels in Bali

The purpose of this research is to analyze the importance of supervisor support in motivating the work of operational employees and its implications for employee performance and retention in 5-star hotels in Bali. The problem in this research is how important supervisor support is in improving employee performance and retention and what the implications are. The population of this study was all permanent employees of 5-star hotels in Bali. A sampling of 5-star hotels used sampling areas, namely in Badung and Gianyar Regencies. The number of research respondents was 125 people, determined by purposive sampling. Data collection techniques through observation, interviews, and research questionnaires. Quantitative descriptive analysis is used to see the current condition of supervisors based on supervisor support, work motivation, performance, and employee retention so that it is known the importance of supervisor support in improving the performance and retention of 5-star hotel employees in Bali in the future. The results showed that supervisors' support increased employee performance and retention with an average value in the interval 4.21-5.00. This means that supervisors support employee motivation, which affects high employee performance and retention.

Marketing Crisis Management and Hotel Performance: Evidence from Hotels in Mombasa County, Kenya

Purpose: Tourism is crucial in driving economies and preserving cultural heritage worldwide. The sustainability of tourist destinations depends on their ability to effectively manage and recover from marketing crises that can damage their attractiveness and reputation. Despite the allure of tourist destinations, they are susceptible to various marketing crises, challenging their hospitality industries and local economies. These crises can disrupt visitor flows and tarnish reputations. This study explored the impacts of marketing crisis management practices on hotel performance in Mombasa County, Kenya, within a global context of vulnerable tourist destinations.
 Methodology: This study employed partial least squares structural equation modeling (PLS-SEM) embedded in the causal-comparative research design to explore the relationship between marketing crisis management practices and hotel performance. Data were collected through questionnaires distributed to management staff in 18 star-rated hotels in Mombasa County. Confirmatory composite analysis (CCA) validated the measurement models, and demographics were considered as potential influencers on the relationship. Data were presented in Table format and interpreted using percentages.
 Findings: The findings revealed that communication and public relations (β = 0.417, p < 0.05), marketing strategy adjustment (β = 0.336, p < 0.05), and reputation management (β = 0.186, p < 0.05) significantly and positively affected hotel performance. The three combined practices explained 75.1% of the variance in hotel performance. Based on these findings, hotels in Mombasa County and the broader Kenyan hospitality industry must prioritize effective communication and public relations, agile marketing strategy adjustment, and proactive reputation management as integral components of their crisis management strategies to enhance resilience, foster customer loyalty, and maintain competitiveness, especially in times of crises, such as the ongoing COVID-19 pandemic.
 Recommendations: Effective communication and public relations positively impact hotel performance by fostering emotional connections, repeat business, and positive reviews. Dynamic marketing strategy adjustment enhances resilience and adaptability, attracting safety-conscious and adventurous travelers. Reputation management safeguards trust, credibility, and customer loyalty, mitigating negative perceptions during crises. Combining these practices contributes to substantial positive impacts on hotel performance.

Motivation, Training, and Discipline on Employee Performance in Star-rated Hotels in Bogor City

This research focuses on assessing the impact of motivation, training, and discipline on employee performance in star-rated hotels in Bogor City. Employee motivation, training, and discipline are identified as key factors influencing employee performance and, consequently, the success of the hotels. A quantitative research approach was adopted, and data from 220 respondents working in star-rated hotels was collected using a questionnaire. The results reveal that training and discipline significantly impact employee performance, while motivation alone does not have a significant effect. Based on the findings, recommendations are made to prioritize training, foster a disciplined work environment, and consider motivation strategies to improve employee performance and enhance the overall competitiveness of the hospitality industry in Bogor City. By implementing these recommendations, hotels can excel in service delivery and achieve higher levels of customer satisfaction and loyalty.

Effect of Corporate Social Responsibility on Financial Performance of Star-Rated Hotels in Uasin Gishu County, Kenya

Despite the hotel industry playing a vital role in supporting the economy, it has like other business enterprises faced internal and external forces that threatened its competitiveness and sustainability. The purpose of this study was to establish the effect of corporate social responsibility on the financial performance of star-rated hotels in Uasin Gishu County, Kenya. The primary research question that guided the study was: What impact does corporate social responsibility have on the financial performance of star-rated hotels in Uasin Gishu County? The Freeman Stakeholder Theory served as the study’s main framework. The study applied a descriptive survey design. The study’s population of interest comprised 116 respondents who work for star-rated hotels in Uasin Gishu County. The sample size formula for this study was based on Yamane’s formula, where a sample size of 89 respondents was selected by use of stratified random sampling techniques. The primary techniques for gathering data for the study were a questionnaire and document analysis. To determine the reliability of each questionnaire segment, the researcher employed Cronbach’s alpha coefficient and expert judgment to test the content validity of each section. The data gathered was analysed using descriptive methods. The study findings indicated that corporate social responsibility had a strong influence on the financial performance of star-rated hotels in Uasin Gishu County, as the respondents agreed that CSR impacted hotel financial performance. Environmental improvement had the highest score of influence. As a result, the study recommends that hotels engage in more corporate social responsibility activities than they currently do, as this has been determined to result in a positive strategic positioning that is long-lasting. This study brings to the awareness that strategic reconfiguration and alignment of corporate social responsibility practices to organisation policies are key and thus are recommended in enhancing brand awareness

A fuzzy decision support model for online review-driven hotel selection by considering risk attitudes of customers

Online hotel reviews provide a vital information source for customers to select an optimal hotel, but a large amount of vague and unstructured information increases the difficulty of decision-making. From the perspective of customers’ risk attitudes, this paper proposes a novel fuzzy decision support model for hotel selection based on online reviews. Firstly, the useful information from online reviews is extracted by attribute extraction and sentiment analysis, and then this information is aggregated into the Probabilistic Linguistic Term Set (PLTS) by considering the weight of each review. Secondly, the improved linguistic scale functions are constructed from the perspective of customers’ risk attitude to convert PLTS into quantitative information. Thirdly, an integrated attribute weighting method is presented based on objective weights of the statistical measure and subjective weights of the Analytic Hierarchy Process (AHP) technique. Fourthly, an extended Combinative Distance-based Assessment (CODAS) method is developed to evaluate the performances of hotels. The effectiveness of the proposed model is verified by the practical case from TripAdvisor.com and the comparative analysis with the existing methods.

Effectiveness of Discount Incentives in Carbon Reduction: Impact of Customer-Perceived Value Sacrificed for Green Hotels

To improve carbon reduction efficiency, green hotels adopt cash discount incentives to encourage green customer behavior. However, the effectiveness of these incentives in promoting green customer behavior has been controversial. Prior studies argue that customer participation in green hotel practices typically involves specific sacrifices (e.g., inconvenience, lesser quality, or less luxury), going against the hedonism of tourism. Therefore, in the context of hotel carbon reduction, this study adopts mathematical modeling to investigate the impacts of customer-perceived experience sacrifice on the effectiveness of cash discount incentives. By performing backward reasoning, the study obtained the optimal pricing decisions of a green hotel, and based on which the study also observed the impact of effective discount incentives on hotel performance. It was found that cash discount incentives are effective if discounts are higher than the experience sacrifice value perceived by customers, and vice versa. Furthermore, (a proportion of) total cost savings can moderate the relationship between customer-perceived sacrifice and the effectiveness of discount incentives. The study also found that effective discount incentives always help a green hotel increase profit and occupancy, whereas whether these incentives help to reduce total carbon emissions depends on various factors that interact with each other. Findings provide a reference for green hotels to make optimal decisions on discount incentives.

Service Promotion Mix Strategies and Marketing Performance of Indigenous Hotels in Akwa Ibom State

The researchers investigated the relationship between service promotion mix strategies and marketing performance of indigenous hotels in Uyo, Akwa Ibom State. The main objective was to determine the relationship between service promotion mix strategies and marketing performance of indigenous hotels in Uyo, Akwa Ibom State. The survey research design was utilized for the study. The study centered on three and four star hotels in Akwa Ibom State. The sample was 387 employees drawn from the indigenous hotels under study. Structured questionnaire was the main instrument for data collection. Simple linear regression was used to analyze data that was gotten from the field. The result reveals a significant relationship between the proxies of service promotion mix strategies and marketing performance of indigenous hotels in Akwa Ibom State with internet/interactive marketing having the highest standardized coefficient. The researchers concluded that embracing service promotion dimensions does improve marketing performance and recommended that indigenous hotels in Akwa Ibom State that have not been using public relations to a large extent should do so in order to boost their marketing performance and also that indigenous hotels in Akwa Ibom State should engage in event/sponsorship in order to showcase their brand in events within the state. Also, advertising campaign should be emphasized more on the internet since a good number of the population is using this new platform.

Effects of complex spatial atrium geometric parameters on the energy performance of hotels in a cold climate zone in China

Effects of complex spatial atrium geometric parameters on the energy performance of hotels in a cold climate zone in China

Relationship between ESG strategies and financial performance of hotel industry in China: An empirical study

Purpose: This study examines the impact of ESG strategies on the financial performance of international hotels in China. Design/Methodology/Approach: Data was collected from 348 valid responses out of 353 surveyed hotels to analyze the relationships between ESG dimensions and financial performance. Findings: The study reveals significant and complementary relationships among the environmental, social, and corporate governance dimensions of ESG in international hotels in China. Conclusion: Implementing ESG strategies positively influences the financial performance of international hotels in China. Research Limitations and Implications: Limitations include the focus on a specific region and the use of self-reported survey data. Future research should consider broader industry and geographical contexts as well as alternative data sources. Practical Implications: The findings emphasize the value of ESG practices for hotel managers in improving financial outcomes. Contribution to Literature: This study provides empirical evidence on the positive financial impact of ESG strategies in the hotel industry, specifically in the context of China, contributing to the existing literature on ESG and financial performance.

Total Interpretive Structural Modeling-Polarity (TISM-P) to analyze the impact of energy on the sustainability performance of hotels: a case study

Total Interpretive Structural Modeling-Polarity (TISM-P) to analyze the impact of energy on the sustainability performance of hotels: a case study

Price elasticity of demand and its impact on hotel revenue performance during the COVID-19 pandemic

This study investigates price elasticity of demand and its pricing effect on revenue performance of hotels during the COVID-19 pandemic. Using annual operating performance data on over 2,500 hotels from 2018 to 2021, this study provides empirical evidence of a relatively inelastic demand for the lodging sector. Price, income, cross-price, and lagged demand are positive and inelastic in their relationships with demand. Price has a significant and negative effect on lodging demand while a hotel’s competitive position has a significant influence on RevPAR performance with both negatively affected by COVID-19. More important, the results show a significantly greater positive impact of pricing on RevPAR penetration for hotels that raised rates relative to hotels that dropped rates. The findings suggest that it may be best for hotels to maintain or raise room rates to maximize revenue performance in the midst of an external shock.

Green entrepreneurship orientation, green innovation and hotel performance: the moderating role of managerial environmental concern

ABSTRACT This study investigates whether hotels’ environmental and organizational performance is improved through green entrepreneurship, innovation, and managerial environmental concern. Through an online survey questionnaire, 271 responses were collected from hotel employees. The collected data were analyzed using PLS-SEM. The results suggest that green entrepreneurship orientation (GEO) has a direct and significant impact on environmental performance (EP) and organizational performance (OP). In addition, green innovation (GI) mediated the relationship between GEO, EP, and OP. Furthermore, when green innovation is used, managerial environmental concern (MEC) leads to higher environmental performance. However, its impact on GI and OP relationship was not significant. The present study offers important implications for hotels and service industries as it demonstrates the significance and role of green entrepreneurship, green innovation, and managerial environmental concern in improving performance in the hotel industry. 这项研究探讨了酒店的环境和组织绩效是否通过绿色创业、创新和管理层的环境关注得到了改善。通过在线调查问卷，收集了271份来自酒店员工的回答。收集到的数据使用PLS-SEM进行分析。结果表明，绿色创业导向（GEO）对环境绩效（EP）和组织绩效（OP）有直接和显著的影响。此外，绿色创新（GI）在GEO、EP和OP之间起到了中介作用。此外，当使用绿色创新时，管理层的环境关注（MEC）会提高环境绩效。然而，它对GI和OP关系的影响并不显著。本研究为酒店和服务行业提供了重要的启示，因为它展示了绿色创业、绿色创新和管理层的环境关注在提高酒店行业绩效中的重要性和作用。

Leadership and crisis management and their link to improvement of hotel performance: A study of the Jordanian hotel sector

The current environment of volatility, uncertainty, complexity and ambiguity has created a prolonged state of uncertainty for the Jordanian hotel industry. Crisis management leadership is one of the most important attributes for a hotel. The main aim of this study is to evaluate the mediating role of crisis management, the moderating role of a leader’s experience, their relationship to styles of leadership (transformational and transactional) and the resultant performance of Jordanian hotels. Research was based on a self-distributed questionnaire survey of 119 respondents currently holding managerial positions in Jordanian 3 to 5 star hotels. Partial Least Square Structural Equation Modelling was then employed. The findings suggest a transformational leadership style and crisis management experience are the most important attributes for a leader to sustain hotel performance during a crisis. Leaders with a transactional leadership style need crisis management skills to sustain hotel performance rather than experience which is not as important in their case. This paper proves that different leadership styles have a different influence on a hotel’s survivability during a crisis. Therefore, a hotel’s management group must ensure that a leader with an appropriate leadership style takes control during these situations. By combining leadership attributes, experience, and crisis management in a comprehensive framework to ensure sustainable hotel performance in the face of a crisis, this study adds to the body of knowledge on leadership and crisis management practices.

Impact of e-Recruiting and e-Selecting on Employees' Performance in Five-Star Hotels

Impact of e-Recruiting and e-Selecting on Employees' Performance in Five-Star Hotels

Leader's Entrepreneurial Resiliences a Strong Predictor of New Hotel Performance in Yogyakarta

Yogyakarta as one of the leading tourism cities in Indonesia continues to show a trend of new hotel growth in recent years. Even though the Covid-19 pandemic has destroyed the hospitality sector globally, including in Indonesia, it turns out that new hotels are still popping up in this city. This is an interesting phenomenon indicating investor interest in continuing to invest in the hotel sector is still high. On the other hand, the presence of these new hotels keeps the hotel business competition competitive. In this situation, an innovative strategy becomes a determining factor for the sustainability of new hotels in the hotel business competition. The formulation of innovative strategies cannot be separated from the capabilities of the leaders of these new hotels. therefore, this study aims to observe the performance of 80 new hotels in Yogyakarta. The performance of the new hotel will be assessed from the perspective of leader capabilities which include entrepreneurial resilience and entrepreneurial self-efficacy. The findings of this study indicate that the leader's entrepreneurial resilience has a significant effect on the performance of the new hotels. Leader's entrepreneurial self-efficacy is also found to strengthen the effect of entrepreneurial resilience on new hotel performance.

Impact of Customer Relationship Management on the Performance of Hotels of Quetta

The paper examines the impact of Customer Relationship Management (CRM) on the performance of hotels of Quetta City. It is critical for businesses to understand the importance of CRM for sustainability and acquiring a competitive advantage in the industry. The hospitality industry is constantly focusing on CRM to properly understand the needs of their customers so that they can enhance their services. The paper uses a quantitative research approach by collecting information from customers of hotels of Quetta about their performance. A sample of 100 customers was used for the study with the help of a questionnaire. The data was collected and analyzed be done to assess the impact of CRM on Firm Performance of the hotels. It was determined that technology-based CRM is the most critical factor for improving performance, secondly customer orientation and finally knowledge management should be focused if hotels want to improve their financial performance in Quetta. The study helps the hotels of Quetta to assess their current firm’s performance and understand the important strategic changes they will need to further improve their performance to satisfy their customers.