Organizational change research has frequently examined organizations’ short-term responses to external change. However, such a short-term, linear time perspective fails to explain how firms adapt to changes that manifest themselves repeatedly and over time, such as climate change. We therefore develop a dynamic model of organizational entrainment to environmental changes that emphasizes the importance of a cyclical time perspective for firms’ long-term adaptation. This paper responds to prior calls to adopt a time lens perspective to better understand organizational adaptation patterns. We provide an integrative framework on organi- zational entrainment and absorptive capacity that allows researchers to delineate ‘‘when’’ and ‘‘how fast’’ organizations adapt to external changes depending on their time perspective.
Hotel feasibility studies play an important role in the hotel development process as hotel developers, lenders, and operators all require an analysis of a hotel's projected operating performance and the ensuing financial returns. Such studies are rarely effective, however, at predicting future performance. Although scholars and practitioners have repeatedly recommended numerous improvements to correct their methodological weaknesses and improve their accuracy, few changes have been incorporated. This study's purpose was to identify the underlying reasons why the methodological improvements identified in previous studies have not been undertaken. The research employed a qualitative methodology based on interviews with leading hotel owners, developers, lenders, and consultants. The key findings of the research demonstrated that the way in which feasibility studies are used, the value the stakeholders place on them, cost and time constraints, and the limited incentives and accountability associated with improving underlying assumptions and methodologies are key drivers behind the marginalization and stagnant evolution of the hotel feasibility study.
The general manager (GM) is the key position in a hotel, but the changing structure of the industry has altered the scope of the GM’s decision-making autonomy. In many hotels, the GM is an employee of a hotel operating firm and is effectively an agent of the operator or owner (and sometimes both parties). These principals have authority over several aspects of hotel operation, although the GM also has responsibility. A study of the GM’s role and authority in 115 upscale European hotels finds a mixed picture in decision autonomy, depending on the individual’s experience and education, as well as whether the hotel is independent or chain managed. Overall, independent GMs have greater autonomy in their properties than chain GMs, and highly experienced managers are often given greater autonomy by independent owners, while operating companies give greater autonomy to GMs who offer a combination of education and experience. With regard to individual functional areas, chain GMs have relatively greater authority in human resources, marketing, and strategy but limited autonomy in finance and operations.
While it is generally accepted that hotel reviews and ratings posted on travel websites drive hotel sales and revenue, the effects of reviews can be parsed into volume (the number of reviews about a hotel) and valence (the ratings in those reviews). This study finds that the two chief aspects of reviews—volume and valence—have different effects on hotels in various chain scale segments. Industry reports and academic studies show that online reviews influence customers’ choice of hotel and thus drive hotels’ revenue per available room (RevPAR). However, the valence of those reviews has a greater effect on luxury hotels’ RevPAR, while the volume of reviews has a greater effect on lower-tier hotels. Based on a study of 319 hotels in the London metropolitan market, these effects apply equally to urban and suburban hotels, as well as chain and independent hotels. The results further indicate that the rating score effect on RevPAR has little impact on the economy and midscale segments, while an increasing number of reviews actually has negative effects on higher-end hotels.
This paper examines the topline performance of a cross-section of hotels in the United States from 2009-2013 to test whether green certified properties, LEED or Energy Star, generated revenue performance premiums over non-certified hotels. In other words, does it pay to be green? Regressions included regional, class, chain scale, size, and location controls. Custom comparable clusters were also separately test ed. Results show that LEED labeled hotels experience higher ADR bu t lower occupancy rates, resulting in a statistically insignificant difference in RevPAR. Energy Star labeled buildings consistently showed higher occupancy
This paper empirically analyzes CEOs’ compensati on in the hospitality industry providing stylized facts regardi ng CEOs pay. The paper also addresses the principal - agent problem and it provides new evidence of the various forms of c ompensation ’s effects on companies’ performances . Finally, it compares the results with other industries. The results suggest that CEO s’ compensation in the hospitality sector differ s in magnitude and composition from other industries. The empirical analysis also reveals that there is a positive and significant link between cash - based incentives and performance s . I argue that a positive co rrelation between cash - based compensation and performance does not imply a pos itive causality . I also found evidence that stock options affect negatively firms’ performances in all industries
The proliferation of smartphone ownership, the diff usion of applications (apps), and the growth of mobile travel bookings have stimulated hoteliers to develop mobile strategies to satisfy customers’ needs. In addition to making their websi te mobile responsive, hoteliers need to consider deploying and developing apps specific to their property and customer needs. A quantitative approach was applied to identify and r ate the most commonly available features and functions on hotel chain apps. The results show ed that the most common features and functions are; the contact details, booking & reser vation function, directions and maps. Hoteliers are recommended to include more ‘At Hotel ’ functions in hotel apps to capture data and differentiate the app experience.
This paper reviews the e-browsing and e-booking beh aviours and drivers in the context of a newly emerging market where much of the distributio n landscape remains traditional and OTAs have yet to dominate the market. It uses a qua ntitative approach and the findings indicate that e-bookers and e-browsers share more commonalit ies than differences, except in their usage of hotel sites. Recommendations are made to retain d irect online bookings, avoid commissions from agents and engage with customers directly. The managerial implications focus on improved website performance for both e-browsers an d e-bookers.
