The Economics of Quality in the Hotel Business

Abstract

There are few empirical studies on the economics of quality, and case studies and anecdotes dominate current research. This paper proposes that quality requires resources (input) and that quality has positive effects on economic performance (output). The study is based on quality ratings from 400,000 customers and detailed accounting information from more than 500 hotels. It demonstrates both that quality has positive effects on the hotels' economic performance and that superior quality requires economic resources.

Making sense of the hotel guestroom

“…Toffl er (1980) describes the customer as a participant in a ' prosumption ' process, one not only encompassing the consumption of a static physical product consisting of identifi able, tangible properties, but also an intangible interactive product. Skalpe and Sandvik (2002) consider this perspective of the product particularly appealing in the case of hotel accommodation and have differentiated interaction elements and physical elements in their two-dimensional quality construct. The guestroom is one of the physical elements subjected to the evaluative dimensions of elegance, comfort, aesthetics and satisfaction.…”

Impact of a Mediating Role of Repurchase Intentions on Customer Retention

“…Research in the area of services has concentrated on service quality [12], [13], [14], [15], [16] and overall customer satisfaction [17], [14], [18], [19]. One of the best-known theoretical approaches has been developed by the work of Parasuraman and associates [20], who developed the 'four gap model'.…”

The production of sustainable tourism: concepts and examples from Norway

“…10, 223-234 (2002) whole tourism industry (Huse et al, 1998), it is recognized as a significant generator of foreign exchange bringing in an estimated USD2.3 billion in 1996 (OECD, 1997). Between 1990 and 1999 guest nights rose by 40% to over 15 million (Skalpe, 2000). As a whole industry, it employs in excess of 18% of the national working population.…”

“…The travel industry alone accounts for 4.3% of GDP and 6.8% of employment (Skalpe, 2000). While conflicting accounts exist as to the direct gross domestic product (GDP) contribution of the Copyright  2002 John Wiley &Sons, Ltd andERP Environment Sust.…”