The moderating effect of operator type: the impact of information technology (IT) expenditures on hotels’ operating performance

Abstract

Purpose This study aims to examine how operator type moderates the relationship between hotel information technology (IT) expenditures and operating performance. Design/methodology/approach By adapting and extending O’Neill et al.’s (2008) and Hua et al.’s (2015) research, this study constructed an empirical model and tested proposed hypotheses, with Newey and West (1994) errors computed to accommodate potential heteroscedasticity and autocorrelation issues. Findings Operator type moderates the impact of hotel IT expenditures on operating performance. In particular, it appears that the operator type of franchising exerts a stronger moderating effect compared with other operator types explored. Practical implications This study, as the first of its kind, shows that the choice of operator type shapes how a hotel can effectively use IT expenditures to improve operating performance. This finding can be beneficial for hotel owners when making operator type decisions. In addition, operator type moderates the direct impact of IT expenditures on revenues and gross operating income. This study’s results show that franchised hotels seem to use IT expenditures more effectively compared with independently owned hotels. Originality/value This study contributes both theoretically and practically to understand how operator type moderates the relationship between IT expenditures and hotel performance. The research outcome provides a more holistic view that governs the relationships between IT expenditures, operator type and operating performance.

A systematic and critical review of Internet of Things in contemporary hospitality: a roadmap and avenues for future research

“…IoT) in solving problems and facing challenges encountered in the hospitality industry, in addition to analyzing their impact on hotels' operating performance. This suggestion aligns with Hua et al (2020) and Yang and Han (2021). The current review also recommends upcoming scholars explore the role of smart technologies such as IoT devices in enhancing customers' experiences in hospitality.…”

“…IoT, robots, big data and artificial intelligence are features of Industry 4.0 (Hua et al , 2020; Yan et al , 2017; Zarezadeh et al , 2022). One of the emerging industries is IoT which is broadly used in diverse domains, such as energy, health care, chemical, education, transportation, manufacturing, smart cities and the hospitality industry (Erdem et al , 2018; Madakam et al , 2015; Makhdoom et al , 2018; Pizam, 2017).…”

Virtual site visits for meeting and event planning: are US convention facilities ready?

“…This study enhances practitioners' understanding of convention facility websites as a sales and marketing tool in preparation for a fourth wave of technology adoption (Solaris, 2019) by the meeting, convention and event planning industry. Recent evidence from both academic literature and industry publications suggests that companies with greater e-commerce capabilities are better positioned to provide a superior customer experience, as well as increase operational efficiency and improve financial performance, especially amidst a global pandemic (American Express, 2020;Chiang, 2020;Hua et al, 2020;Sarkady et al, 2021). Therefore, the study provides management of convention facilities with valuable insight into the utilization of VR technology by competitors.…”

The Role of Technological Innovation in Improving the Egyptian Hotel Brand Image.

“…Mobile technology is critical to the customer experience of a hotel stay, adding incredible value and increasing customer happiness by improving the quality and elasticity of hotel services, communication competency, and service personalization (Zhang et al, 2019). Many hotels and accommodation businesses, on the other hand, have seen improved financial performance as a result of the implementation of modern technologies, and it has been suggested that hotel applications could improve hotels' competitive advantage, for example, by lowering operating costs, adding value, increasing agility, reducing service turnaround time, and improving new products and services (Hua et al, 2020;Vikas & Deependra, 2019).…”