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Determinants of Comprehensive hotel performance

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Irina Krupskaya

on 15 October 2013

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Transcript of Determinants of Comprehensive hotel performance

Determinants of Comprehensive Hotel Performance
Hotel Performance
Customer Delight
Conclusion
Introduction
Forum Questions
Workshop
Conclusion
References
Table of Contents
References

Assaf, A.G. and Magnini, V. (2012) Accounting for customer satisfaction in measuring hotel efficiency: Evidence from the US hotel industry. International Journal of Hospitality Management, 31, 642–647. Available from:http://www.sciencedirect.com [Accessed 7 October 2013].

Barsky, J. and Nash, L. (2003) Customer Satisfaction: Applying Concepts to Industry-wide Measures. Cornell Hotel and Restaurant Administration Quarterly, 43 (2), Available from: http://www.marketmetrix.com/Cornell_Feature.pdf [Accessed 8 October 2013].

Berman B. (2005) How to delight your customers. California Management Review, 48, 129-151.

Chi, C.G. and Gursoy, D. (2009) Employee satisfaction, customer satisfaction, and financial performance: An empirical examination. International Journal of Hospitality Management, 28, 245–253 .Available from:http://www.sciencedirect.com [Accessed 7 October 2013].

Crotts, J.C. and Magnini, V.P. (2011) The Customer Delight Construct : Is Surprise Essential? Annals of Tourism Research, 38, 708–722. Available from: www.sciencedirect.com [Accessed 8 October 2013].

Crotts, J.C., Pan, B. and Raschid, A.E. (2008) A survey method for identifying key drivers of guest delight. International Journal of Contemporary Hospitality Management, 20 (4), 462-470. Available from:www.emeraldinsight.com [Accessed 6 October 2013].

Karatepe, O.M., Uludag, O, Menevic, I. and Baddar, L. (2006) The effects of selected individual characteristics on frontline employee performance and job satisfaction. Tourism Management, 27, 547–560. Available from: http://www.sciencedirect.com [Accessed 9 October 2013].

Kim, W.G., Cho, M. and Brymer, R.A. (2013) Determinants affecting comprehensive property-level hotel performance: The moderating role of hotel type. International Journal of Hospitality Management , 34, 404–412. Available from: http://www.sciencedirect.com [Accessed 1 October 2013].

Kim, M., Vogt, C.A. and Knutson, B.J. (2013) Relationship Among Customer Satisfaction, Delight and Loyalty in Hospitality Industry. Journal of Hospitality and Tourism Research. Available from: http://jht.sagepub.com [Accessed 9 October 2013].













How to define hotel performance??
Balanced Scorecard
What is so special about hotels performance?
Hotel performance
Combination of Several Dimensions
Financial ( Strategic)
Non- Financial (Service-Profit Chain)
Consideration of generated value
Involvement of main business partners
Identification of all determinants
Tourism and Business of Hotels
Irina Krupskaya
BSc-2

Knutson, B. (2013) Will You Please Stop Trying to Satisfy Your Guests? Hotel Business Review. Available from: http://hotelexecutive.com/business_review/2389/will-you-please-stop-trying-to-satisfy-your-guests [Accessed 9 October 2013].

Schiffman, L.G. and Kanuk, L.L. (2004) Consumer Behavior, Prentice Hall, Upper Saddle River, NJ

Silva, P. (2006) Effects of disposition on hospitality employee job satisfaction and commitment. International Journal of Contemporary Hospitality Management, 18 (4), 317-328, Available from: http://www.sciencedirect.com [Accessed 9 October 2013].

So,K.K.F., King, C., Sparks, B.A. and Wang, Y. (2013) The influence of customer brand identification on hotel brand evaluation and loyalty development. International Journal of Hospitality Management, 34, 31–41. Available from:http://www.sciencedirect.com [Accessed 8 October 2013].

Sun, K.A. and Kim, D.Y. (2013) Does customer satisfaction increase firm performance? An application of American Customer Satisfaction Index (ACSI). International Journal of Hospitality Management, 35, 68–77. Available from:http://www.sciencedirect.com [Accessed 7 October 2013].

Torres, E.N and Kline, S. (2006) From satisfaction to delight: a model for the hotel industry. International Journal of Contemporary Hospitality Management, 18 (4), 290-301. Available from:www.emeraldinsight.com [Accessed 9 October 2013].

Tanford, S., Raab, C. and Kim, Y.S. (2012) Determinants of customer loyalty and purchasing behavior for full-service and limited-service hotels. International Journal of Hospitality Management, 31, 319–328. Available from:http://www.sciencedirect.com [Accessed 8 October 2013].

Torres, E.N. and Kline, S. (2013)From customer satisfaction to customer delight: Creating a new standard of service for the hotel industry. International Journal of Contemporary Hospitality Management, 25(5), 642-659 Available from: www.emeraldinsight.com[Accessed 1 October 2013].
why so special?
High intangibility
(rooms)
Presence of
physical assets (F&B)
Stores
Strong growth
Growing competition
Existence of high spacial concentration (destinations)
(Sainaghi, 2010)
Adapted from Philips and Louvieris (2005),
Kaplan and Norton (1996)

Customer Satisfaction
Increases sales
Creates awareness, repurchase intention
Customers Retention and Loyalty
Decreases cost of future transaction
Positives Feed Back
Word of Mouth
Increases Company Value
(Kim et al., 2013,
Borsky and Nash 2003, Sun and Kim, 2013)
(Torres and Kline, 2013)
(Kano, 1984)
Kano Model of Customer Satisfaction
From Satisfaction to Delight
positive emotional response to surprising product attributes or service encounters
(Berman, 2005)
(Kim et al, 2013)
Employee Satisfaction
Class Activity
Delight or Not?
Hotel "Clubs"

Hotel "Spades"
5 Star Boutique
Belongs to Famous Hotel Brand
High Occupancy
Competitive Price
Location:City Center
5 Star Business
Belongs to Hotel Chain
Average Occupancy
Competitive Price
Location:City Center
Find what is missing!
Advantages
Exceeded expectations
->Loyalty
Wow-effect
Reputation of the hotel
Positive feedback
Competitive advantage
Empowering of the Staff
Marketing Tool
Disadvantages
Investments
Staff issues
Risk
How to delight all the time?
Can be insulting
"Hospitality and tourism companies cannot survive without satisfied customers; however, having satisfied customers may not guarantee the success of any hospitality and tourism business. In order to succeed, a company has to do a better job in creating satisfactory experiences for both employees and customers than its competitors"
(Chi and Gursoy, 2009)
Leads to Better performance
Creates welcoming atmosphere
Employees are putting extra afford
Increases motivation
Low turnover
How can the hotel satisfy guests, if it can not satisfy the employee?
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