The Effects of Relationship Marketing Orientation on Business Performance in the Hotel Industry

Abstract

The purpose of this study was to investigate the link between relationship marketing orientation and business performance in the hotel industry. Data were generated from 63 hotels in Hong Kong. The findings indicate that relationship marketing orientation was positively and significantly associated with marketing performance and financial performance of a hotel. Implications of the findings are discussed, and limitations of the study as well as further research directions are addressed.

Customer accounting and marketing performance measures in the hotel industry: Evidence from Australia

“…Other more recent hotel industry related research has examined the effects of relationship marketing orientation on business performance in Hong Kong hotels (Sin, Tse, Chan, Heung and Yim, 2006); the relationship between total quality management, market orientation and hotel performance in Chinese hotels (Wang, Chen and Chen, 2011); the impact of strategy on hotel performance in Spain (Claver-Cortés, Molina-Azorín and Pereira-Molina, 2007); the impact of market structure and location on profitability of Taiwanese hotels (Pan, 2005); the impact of customer satisfaction on hotel performance in Africa (Capiez and Kaya, 2004); an exploration of the use of new performance measurement techniques in an international hotel chain (Cruz, 2007); the financial accounting statement format used by hotels in China (Chan and Wong, 2007); the association of non-financial measures of customer satisfaction with future financial performance (Banker, Potter and Srinivasan, 2005). …”

Integrating the Web - A Study of Hotel Web Use

“…The future must be one where the business thinks about the possibilities for alignment. Sin, Tse, Chan, Heung, & Yim, (2006) More research needs to investigate channel distribution strategy, including both channel distribution costs and, forecasting where future hotel bookings are likely to come from.…”

The moderating effect of cost orientation on RMO adoption in the hospitality industry

“…Instead of focusing on managerial perceptions of the adoption of RMO in an industry and its effect on BP, as is common practice (Olotu et al, 2010;Sin et al, 2006Sin et al, , 2002Tsui et al, 2008), the present study develops theoretical insights on the effect of RMO implementation in the hotel industry, when hotels experiencing competitive pressures might feel compelled to trade off longer-term gains from relational strategies for transactional profit measures. It is suggested that competitive pressure may impact decisions about actual RMO implementation over time, possibly reducing perceived RM efficacy and its continued adoption by business.…”

“…In the context of Asia (mostly Hong Kong), Middle East and Africa, the literature reports managers' perceptions of a positive link between RMO and BP. Those studies cover general businesses (Chattananon and Trimetsoontorn, 2009;Coltman and Devinney, 2005;Gupta and Sahu, 2013;Kucukkancabas et al, 2009;Shaker and Basem, 2010;Sin et al, 2002;Tse et al, 2003), as well as specific trade sectors, such as financial services (Tsui et al, 2008), banking (Olotu et al, 2010) and hospitality (Alrubaiee and Al-Nazer, 2010;Enyioko and Onwusoro, 2014;Firdaus and Kanyan, 2014;Gan et al, 2007;Sin et al, 2006). Table 1 Components of the RMO construct…”

“…Refers to the ability of the parties to a relationship to understand and respect the other party's perspective (Sin et al, 2006). Maintaining positive relationships with salespeople is argued to impact on salespeople's empathy with customers (Aggarwal et al, 2005).…”