Hotel Values and Strategic Implications

O’Neill, John W.; Lloyd-Jones, A. R.

doi:10.1177/0010880402435005

Cited by 3 publications

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“…Several studies focused on the effects of the attack on the hotel industry in the USA in general. O'Neill and Lloyd‐Jones (2002) indicate that after a terrorist attack, hotels lose their value. However, they suggest that hospitality managers will recover more easily if they wait for the industry to become stable again.…”

Section: Introductionmentioning

confidence: 99%

Hotels on fire: investigating consumers' responses and perceptions

Vassilikopoulou

Siomkos

Chatzipanagiotou

et al. 2009

International Journal of Contemporary Hospitality Management

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PurposeThis paper aims to investigate the consumer responses associated with crises in the hotel industry. More precisely, the current research explores the factors that affect consumer attitudes (i.e. impressions, perceived social responsibility, and future purchases) during a hotel crisis.Design/methodology/approachAn experiment was conducted relying on four factors: the hotel's reputation, the extent of the crisis, external effects from regulatory agencies, and press and organisational response. Respondents were randomly assigned to 36 treatment groups (three levels of crisis extent×two levels of hotel corporate reputation×two levels of external effects×three levels of hotel response). Scenarios were developed, each describing one of the 36 treatments.FindingsThe results revealed that reputation, external effects and organisational response significantly influenced consumers. Specifically, consumers were more likely to have a positive impression of a hotel in crisis, to perceive the hotel as being more socially responsible, and to revisit the hotel when it was highly reputed, accepted responsibility, and was viewed favourably by the media. The extent of the crisis was found to be an insignificant factor.Practical implicationsHotel managers could incorporate the results of this study into their crisis management plans. As consumer attitudes are explored, the hotel might begin to achieve more effective crisis management strategies.Originality/valueThere is a lack of research investigating hotel crisis management from the customer's perspective. By adopting effective crisis management practices, hotel managers could reduce the negative outcomes of crises such as fires.

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Section: Introductionmentioning

confidence: 99%

Hotels on fire: investigating consumers' responses and perceptions

Vassilikopoulou

Siomkos

Chatzipanagiotou

et al. 2009

International Journal of Contemporary Hospitality Management

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The Role of Brand Affiliation in Hotel Market Value

O’Neill

Xiao

2006

Cornell Hotel and Restaurant Administration Quarterly

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119

102

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The notion that a hotel’s brand contributes significantly to the property’s market value is supported by an analysis of nearly eleven hundred hotel transactions over the past fifteen years. The analysis found that brands added value beyond the usual contributors to a property’s value, such as net operating income and revenue per available room. The effects of branding were most noticeable in midmarket and upscale hotels. Based on per-room sales statistics, certain brands added significantly more value to their franchisees’ properties than others.

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Winners and Losers during the Great Recession

Singh

Dev

2014

Cornell Hospitality Quarterly

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One of the factors that separated winning hotels from losers in the recession was the hotels’ management of marketing expenses. By matching a group of 100 winners to 106 losers, based on high or low financial performance during the nadir of the recent recession, the study highlights the effects of marketing expenses as one primary driver of revenue and profit. The study compares the two groups’ revenue and profitability metrics to determine the two groups’ financial performance as the recession wore on. The results of this study show significant differences between winners and losers when measured by top-line indicators (Average Daily Rate [ADR], RevPAR, TRevPAR) and profitability (GOPPAR and NOIPAR). Winners were also found to spend significantly more on marketing than losers. The relationship between marketing expenditures and performance is significantly positive, with franchise expenses and other sales expenses emerging as the most important determinants of RevPAR, GOPPAR, and NOIPAR. In particular, these results highlight the importance of personal sales efforts, including promotions, familiarization trips, trade shows, and the training of sales personnel, personal sales visits to clients, and use of outside sales representatives to help hotels thrive in a recession. These data lead to the conclusion that firms that “invest” in marketing, especially in tough times, can achieve a payoff via various revenue drivers (e.g., trade shows) and will realize gains beyond just the short term.

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Hotel Values and Strategic Implications

Cited by 3 publications

References 0 publications

Hotels on fire: investigating consumers' responses and perceptions

Hotels on fire: investigating consumers' responses and perceptions

The Role of Brand Affiliation in Hotel Market Value

Winners and Losers during the Great Recession

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