John W. O'Neill

RELATIONSHIPS BETWEEN HOTEL ROOM PRICING, OCCUPANCY, AND GUEST SATISFACTION: A LONGITUDINAL CASE OF A MIDSCALE HOTEL IN THE UNITED STATES

This case study examined the relationship among hotel room prices, occupancy percentage, and guest satisfaction using 3 years of data from 3,875 actual guest satisfaction surveys at an upper-midscale hotel. The study concludes that price was a significant predictor of overall guest satisfaction and three key guest-satisfaction components: guest room cleanliness, maintenance, and attentiveness of staff (with negative, curvilinear relationships in all cases). Conversely, occupancy percentage failed to be a significant predictor of guest satisfaction.

Hotel Brand Strategy

Few dispute the value that a brand brings to a hotel property, but questions remain regarding exactly how the brand creates guest loyalty and how it creates value. Over the past twenty-five years, a brand flag has become an essential element of arranging a hotel development deal. Because of this, researchers have examined how brands influence top- and bottom-line revenues and overall asset value. Moreover, the effect of the brand on customer satisfaction seems to be affected by the brand’s franchising strategy.

The role of hotel owners: the influence of corporate strategies on hotel performance.

Purpose – The purpose of this paper is to examine corporate strategic effects on hotel unit performance. Taking a hotel owners perspective, the relationship between four types of the owners corporate level strategies and the hotel property financial performance are examined.Design/methodology/approach – This study is built on a secondary data set provided by Smith Travel Research. A total of 2,012 hotels across the USA were analyzed for the period between 2003‐2005.Findings – The findings support the existence of corporate effects in the US lodging industry. It is revealed that a hotel owners corporate strategies do influence hotel property level financial performance. Specifically, a hotel owners expertise in implementing superior strategies regarding segment, brand, operator, and location (i.e. state) are critical to hotel unit financial performance.Research limitations/implications – The main limitations of this study include the limited number of years with available data, lack of knowledge on the...

The Relationship of Sales and Marketing Expenses to Hotel Performance in the United States

While hotel organizations are investing considerable sums of money for marketing at the unit level, research investigating the relative benefits of the different areas where those funds can be invested is lacking. This exploratory study endeavors to fill that void. Since different types of hotels have differing operating characteristics, this study examines marketing expenditures for various hotel tiers, using the Smith Travel Research chain scale categorizations. The study finds that marketing expenditures have differential effects according to the type of hotel and the particular type of marketing expenditure. These analyses explore implications of various types of marketing expenses on both hotel unit revenue and profitability.

ADR rule of thumb: validity and suggestions for its application.

Abstract Hotel investors use the ADR rule of thumb because its simple—a hotel should generate one dollar in ADR per every

An Automated Valuation Model for Hotels

1,000 in value per guest room; but that rule is not without its problems.

Using focus groups as a tool to develop a hospitality work‐life research study

A stepwise regression analysis to create an automated valuation model (AVM) for hotels found four significant factors that together provide a reasonable estimate of a property’s value. The four factors are the twelve-month lagging averages of net operating income, average daily rate, occupancy, and number of rooms. Number of rooms appears to stand in for the extent of the hotel’s facilities. The regression analysis tested the following factors but found that they were not significant: region, location in a metropolitan area, age of property (or date of construction), and date of sale. Even though the regression indicates that the operating ratios capture much of a hotel’s value, the AVM is not intended to supplant more-sophisticated methods of hotel valuation (such as discounted cash flow). Moreover, the question remains of how to separate the two aspects of a hotel property’s value, that of the real estate and that of the business operation.

Work-Family Balance as a Potential Strategic Advantage: a Hotel General Manager Perspective

Purpose – This paper seeks to describe how the results of the qualitative research method of focus groups may be used as conceptual data at the onset of a research study to inform researchers regarding relevant issues for future more in‐depth quantitative study.Design/methodology/approach – Seven focus group sessions with a total of 50 participants were conducted, each focus group with six to eight participants. All focus groups included the homogeneous participants of new entrants to the hospitality industry. Focus group questions were inductive and naturalistic and centered on career expectations and work‐life issues. Sessions averaged 1 hour and 15 minutes and were conducted by trained graduate students.Findings – The paper suggests that long, unpredictable hours create both work‐related and non‐work stress. Further, there is general agreement regarding the stressors and benefits associated with working in the hospitality industry.Research limitations/implications – Limitations include the use of senio...

Hotel Rebranding and Rescaling: Effects on Financial Performance

This qualitative study is an exploratory attempt to investigate hotel general managers’ (GMs) perceived work—family balance/interface issues from a strategic perspective. Based on 49 in-person, in-depth, in-office, interviews with full-service hotel GMs, the authors identify current strategic issue perceptions (SIPs) of hotel GMs and explore potential relationships between these SIPs and work—family issues in the hotel industry. Findings suggest that work—family issues, including workplace flexibility, turnover, knowledge management, and career advancement are influenced by hotel culture and the GM’s management style; and when human resources are perceived as a competitive advantage by the hotel GMs, the work—family issues are indeed related to the hotel GM’s perceived strategic issues.

Hotel Guest satisfaction and brand performance: the effect of franchising strategy

An exploratory study of ninety-five hotels that rebranded or rescaled their operations revealed the possibility of long-term financial benefit after the change. In many cases the hotels saw an initial decline in financial results, but that was followed by a gradual recovery. Hotels that moved upscale generally saw increases in average daily rates. Hotels that merely changed brands without also changing their scale reported no significant change in financial results.