Aviad A. Israeli

Star rating and corporate affiliation: their influence on room price and performance of hotels in Israel

Abstract The purpose of this paper is to ascertain whether and how star rating and corporate affiliation, as signals of quality, influence pricing decisions of hotels in Israel in various geographical locations, each with its specific market characteristics and during two different periods in which the business environment suffers from a crisis due to the political circumstances in the Middle East. The data suggests that the star-rating system, which is traditionally used to rate hotels’ quality, is a still stable and consistent predictor of room prices. However, in light of the increased usage of brand names in the Israeli industry, it was found that the ability to charge and receive a premium for the hotel corporate affiliation or brand name is not consistent. The analysis presents the case in which a premium for brand name is eroded by the influence of the crisis, by the level of corporate intensity in the region, and also by the relative strength of consumers in the different geographical locations.

Hospitality crisis management practices: the Israeli case

Abstract This study attempts to examine hospitality crisis management practices within the context of the Israeli hospitality industry. The study develops a questionnaire that evaluates the importance and usage of four categories of practices: marketing, hotel maintenance, human resources, and governmental assistance. The findings illustrate which practices managers consider important and which practices managers actually use during an industry crisis. The paper concludes with recommendations for future research and management of crises.

Testing servers' roles as experts and managers of tipping behaviour

This article studies the ability of servers to predict their own tips. A distinction is made between the two roles of servers with regard to tipping behaviour: the role of expert and the role of manager. As experts, servers understand the relations between several predictors and tip size, and are able to predict the tip they are about to receive. As managers, servers designate certain tip amounts, and then manage the service encounter so that their predictions are realised. This study maps the necessary conditions for an expert position and outlines the process for managing a service encounter. Empirical testing suggests that servers have an impressive predictive ability. The findings also offer some support to the view of the role of the server as manager.

Religious Identity And Residents’ Attitudes Toward Heritage Tourism Development: The Case Of Nazareth:

The study examines the impact of religious affiliation on residents’ attitudes toward tourism development and economic growth that were anticipated in the city of Nazareth prior to the year 2000 celebrations. The attitudes of Christian and Muslim Arab residents of Nazareth and the Galilee area were investigated regarding the economic role of tourism in Nazareth, the celebrations planned for the year 2000, and the existing problems that might affect these celebrations. The findings suggest that identification with the heritage promoted for tourism should be considered as a determinant of residents’ attitudes toward heritage tourism development.

From illegal gambling to legal gaming: casinos in Israel

Abstract Gambling is a significant tourist attraction and provides a significant source for development to the region and the state, as well as an income to organizations in the tourism industry. Casino gaming is often considered a catalyst for the development of a tourism industry, providing new revenues, employment, and visitors. Many states debate whether gaming can or should become a part of their tourism industry. In this context, Israel is an interesting case. Although it has characteristics of a western culture in which the private enterprise gaming industry has gained increasing popularity, Israel was established as a Jewish state in which there is no division between state and religion. The purpose of this paper is to present a case for legalized gaming in Israel by focusing on the difficulties of the current situation, in which casino gaming is illegal. The paper also provides information on tangible benefits that might be expected from a legal gaming industry based on the private enterprise system. A hypothesized reality is investigated in which gaming is legal in Israel and a single casino is operating in the southern city of Eilat. The findings suggest that such a venture would generate economic benefits if policy makers provide a supporting legal setting in which illegal gambling is eradicated. The paper demonstrates how to initiate a cost benefit analysis of the issue in an effort to consider legal gaming in Israel.

Investigating the use of advertising for communicating a hotel's strategic assets.

Abstract Advertising may have a significant impact on a hotels competitive advantage and financial performance. There is, however, an ongoing debate as to the role of advertising. One view suggests that advertising yields market power, which then fosters brand loyalty. The opposing view suggests that advertising, among other roles, is a method to inform customers about products or services, which then increases price sensitivity. This article discusses the hypothesis that the hotels ability to communicate strategic assets determines the use of advertising. Hotels can use advertising channels to communicate strategic assets, hence create market power and support a price differentiation strategy. On the other hand, if the channel restricts the ability to communicate strategic assets, it will be used primarily as an informative tool. This study presents a case in which hotel advertisements are presented in a restricted setting, allowing advertising to communicate location and corporate affiliation, which are considered to be among a firms strategic assets. We demonstrate that corporate affiliation is a strategic asset that supports an advertised request for a price premium in the hotel industry. The study also presents the limitations in using location as a strategic asset.

Justification of global positioning systems purchase using the analytic hierarchical process—The case of the Israeli Defense Force

Abstract A major issue in a decision to adopt advanced technologies is the justification process. Many technological developments are evaluated according to tangible criteria while important intangible criteria are overlooked. This study investigated a military need for advanced navigation technology in the Israeli Defense Force. The first and second parts discuss difficulties with current navigation methods and present the global positioning systems technology (GPS) as a solution. The third part presents some difficulties with traditional decision-making techniques as they apply to the decision to adopt GPS technology in a military environment. The fourth part presents an application of the analytic hierarchy process (AHP) for defining tangible and intangible decision criteria, assigning them numerical weights and evaluating GPS alternatives accordingly. In conclusion, the study presents an alternative to traditional decision-making processes and military purchasing procedures of innovative technology (such as the lowest bidder method) by providing an opportunity to incorporate user-defined criteria into the decision-making process. This study proposes an alternative to traditional military and governmental purchasing methods and it should be valued as an alternative decision tool for innovative technology in times of shrinking governmental budgets.

Effectiveness and efficiency of managers: are they doing what they can or all they can?

Effectiveness and efficiency are two common terms in management. Effectiveness is generally described as ‘doing the right thing’, and efficiency as ‘doing things right’. This paper investigates the aggregate performance of managers in the Israeli hospitality industry in an effort to identify whether their performance can be categorized as effective, efficient, or both. The findings suggest that instead of being effective and efficient, managers tend to be either effective or efficient. Some explanations for this phenomenon are offered, and the study concludes with recommendations for academics and practitioners.

Modelling a Decision Maker's Preferences, Part 2: A Tool for Pricing Decisions in the Hospitality Industry

Pricing decisions in the hospitality industry are subject to a number of different and competing considerations, including economic (profit), marketing (what price will guarantee a sale), yield, wear and tear on the facility, the owners preferences, and the managers preferences. Since a manager balances all these conflicting considerations in determining his or her own preferences, the managers preferences should be used as the starting point for generating a pricing policy. Specifically, the managers preferences for the two substitutable attributes – the number of rooms sold and the average room rate – are modelled using the Constrained Choice Table (CCT) to collect the specific preferences and the Linear-Fractional model to fit linear indifference curves with non-constant rates of substitution (unequal slopes) to the CCT data. This model combined with the marginal cost per room is used as a starting point to develop and evaluate different pricing policies. The consequences of using an average room rate, same value room rate pricing policy for two different types of managers, one occupancy level sensitive and the other average room rate sensitive, are evaluated.

Crisis management in the travel agency sector: A case study

The study focuses on crisis management in the travel agency sector. The analysis is based on a questionnaire that assembled a list of crisis management practices. These practices are grouped into four categories: marketing, maintenance, human resources and government assistance. The study evaluates the importance travel agencies’ managers assign to each practice. In addition, the study evaluates how managers use the different crisis management practices. The findings suggest that there is a gap between the importance managers assign to different practices and the intensity of usage. The gap is especially evident in the category of government assistance where importance of practices is higher than their usage. In addition, managers tend to combine different practice from the different categories of marketing, maintenance, human resources and government assistance in an effort to achieve cost cuts. The paper concludes with recommendations for practitioners and suggestions for future research.