Hotel Marketing Strategy: Its Relationship to Guest Fulfillment and Room Revenue Composition

O'Neill, Mattila / HOTEL JOURNAL OF HOSPIT BRANDING STRA 10. 1177/1096348004264081& TOURISM EXPLORATION ALITY TEGY

ARTICLE

RESORT BRANDING APPROACH: ITS ROMANTIC RELATIONSHIP TO GUESTS SATISFACTION AND ROOM REVENUE John W. O'Neill Anna S. Mattila The Pa State School U. S i9000. hotel brands and international hotel brands headquartered in america have progressively evolved far from being resort operating corporations to being brand managing and operation administration organizations. This craze has allowed to get the more rapid growth and development of countless major lodge brands, as well as the increasing growth of franchised hotels. There are numerous proper implications related to this pattern. This analyze seeks to analyze some of these ideal implications by simply evaluating longitudinal data regarding the performance of major motel brands in the industry, both in terms of guests satisfaction and revenue signals. Specifically, the authors test out whether visitor satisfaction for various U. S. and international brands influences the two brand guests percentage and average daily room charge 3 years later on. In addition , the authors check out whether the percentage of franchised hotel properties influences both equally guest pleasure and guests 3 years later. Also, they will test whether overall brand size contains a positive or detrimental effect on future resort occupancy. Finally, whether the difference in guest satisfaction for lodge brands effects the change in average daily rate throughout the same 3-year period is definitely tested. KEYWORDS: strategy; brand; franchise; quality; guest fulfillment; lodging

This lodging friends are seeking consistency and quality at the right price (Dube & Renaghan, 2000). As a result, lodging workers have flipped their focus on guest pleasure and logos because name brand operates being a " shorthand” for quality by giving the guest information about the product/service look unseen (Briucks, Zeithaml & Naylor, 2k; Jacoby, Szybillo & Busato-Schach, 1977). Accordingly, hotel professionals recognize manufacturer quality as an important business asset and as a potential supply of strategic edge (Damonte, Rompf, Bahl, & Domke, 1997). To maximize company equity, most hotel mega-companies have developed multiple brands to serve multiple markets (Jiang, Dev, & Rao, 2002). The value of a brandname is based on the awareness of the brand, its quality perception, and overall customer satisfaction (Aaker, 1991). Satisfied buyers tend to get more, always be less price conscious, also to generate confident word-of-mouth, hence contributing to bottom-line profit (Anderson & Mittal, 2000). Because of increased focus on a customer concentrate, brand managers use Record of Food & Tourism Research, Vol. xx, Number x, Month 2004, 1DOI: 10. 1177/1096348004264081 © 2005 International Authorities on Lodge, Restaurant and Institutional Education

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a couple of

JOURNAL OF HOSPITALITY & TOURISM EXPLORATION

satisfaction being a measure of detailed success with their overall marketing strategies (Shocker, Srivastava, & Ruekert, 1994). The primary reason for this study is to empirically examine backlinks between guest satisfaction and revenue signals (i. at the., occupancy and average daily rate, or perhaps ADR) by a brand level. In addition , we explore the impact of franchising on guests satisfaction and occupancy costs. THEORETICAL QUALIFICATIONS

From a company strategy standpoint, well-managed brands tend to gain increasing business. Yet, previous research relating service quality with business in the food industry shows mixed outcomes (Ekinci, 2002). Specifically, there are two divergent views on the effect of brand expansion on customers' quality awareness (Hellofs & Jacobson, 1999). First, industry signaling theory suggests that consumers interpret a higher market share as a signal of top quality, thus resulting in increased foreseeable future demand (Caminal & Apres, 1996). Therefore, it is not surprising that market share leaders, which includes those inside the...

References: Aaker, D. (1991). Managing brand equity: Taking advantage of the value of your brand name. New york city: Free Press. Aaker, G (1996). Building strong brands. New York: Free Press. Anderson, E., & Mittal, Versus. (2000, November). Strengthening the satisfaction-profit string. Journal of Service Study, 3, 107-120. Anderson, At the., Fornell, C., & Lehman, D. (1994, July), Customer satisfaction, market share and profitablity: Findings from Sweden, Journal of promoting, 53, 53-66. Appraisal Institute. (2001). The Appraisal of Real Estate (12th ed. ). Chicago: Creator. The best accommodations. (1998, June). Consumer Reports, 12-17. The brand report: The 50 greatest U. S. hotel organizations. (2000, August). Lodging Food, 45-46. Briucks, M., Zeithaml V., & Naylor, G. (2000). Selling price and name brand as symptoms of quality dimensions for consumer durables. Journal from the Academy of Marketing Science, 28(3), 359-374. Caminal, R., & Vives, Times. (1996, Summer). Why industry shares matter: An informationbased theory. Seite Journal of Economics, twenty seven, 221-239. Damonte, T., Rompf, P., Bahl, R., & Domke, D. (1997). Manufacturer affiliation and property size effects upon measures of performance in lodging houses, Journal of Hospitality Analysis, 20(3), 1-16. Dube, L. & Renaghan, L. (2000). Creating obvious customer benefit: How clients view best-practice champions, The Cornell Lodge and Restaurant Administration Quarterly, 41(1), 62-72. Ekinci, Con. (2002). An assessment theoretical discussions on the dimension of service quality: Ramifications for hospitality research, Journal of Hospitality & Tourism Research, 26(3), 199-216. Fornell, C. (1992, January). A national customer satisfaction barometer: The Swedish try things out, Journal of promoting, 56, 6-21. Fornell, C. (1995). The quality of economic result: Empirical generalizations about their distribution and relationship to promote share. Promoting Science, 14(3), G203-11. Harris, J. L. (2003, January 13). A solid investment. Resort & Motel Management, 218(1), 36-44.

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Hellofs, D., & Jacobson, R. (1999). Market share and customers' perceptions of quality: When can easily firms develop their method to higher vs lower top quality, Journal of promoting, 63(1), 16-25. Jacoby, L., Szybillo, G., & Busato-Schach, J. (1977). Information buy behavior in brand decision situations, Diary of Client Research, 3, 209-215. Jiang, W., Dev, C., & Rao, Versus. (2002). Manufacturer extension and customer loyalty: Evidence from the lodging sector, The Cornell Hotel and Restaurant Operations Quarterly, 43(4), 5-16. Linder, D. (2001). Q& A: A few decision words. Countrywide Real Estate Investor, 43(2), 80-81. Michael, S. (2000). The effect of organizational kind on top quality: The case of franchising. Record of Monetary Behavior & Organization, 43(3), 295-318. O'Neill, J. W., & Lloyd-Jones A. 3rd there’s r. (2001). Resort values inside the aftermath of September 10, 2001. The Cornell Hotel and Restaurant Administration Quarterly, 42(6) 10-21. Partlow, C. G. (1993). How Ritz-Carlton applies " TQM. ” The Cornell Hotel and Restaurant Government Quarterly, 34(4) 16-24. Prasad, K., & Dev, C. (2000). Measuring hotel brand equity: A customer-centric construction for assessing performance, ” The Cornell Hotel and Restaurant Supervision Quarterly, 41(3) 22-31. Rust, R., Moorman, C., & Dickson, G. (2002, October). Getting come back on top quality: Revenue development, cost decrease or both? Journal of Marketing, 66(4), 7-24. Shocker, H., Srivastava, 3rd there’s r., & Ruekert, R. (1994, May). Issues and opportunities facing manufacturer management: An introduction to the exceptional issue. Log of Marketing Research, 31, 149-158. Suite dreams. (2001, July). Consumer Reports, 12-18. The Wall Street Journal. (2002, May 20). B11. Walsh, J. G. (2002, September 16). Cendant focuses on improving quality: Dispenses applaud new program. Hotel & Motel Management, 217(16), 1-78.

Posted December a few, 2002 1st Revision Published March 40, 2003 Final Revision Posted July 12-15, 2003 Accepted August twenty-three, 2003 Refereed Anonymously

David W. O'Neill, MAI, CHE, Ph. Deb. (e-mail: [email protected] edu), is a assistant professor in the College of Resort, Restaurant and Recreation Managing at the Philadelphia State College or university (233 Mateer Building, University or college Park, PA 16802-1307); Anna S. Mattila, Ph. M. (e-mail: [email protected] edu) can be an Associate Professor in the School of Hotel, Restaurant and Entertainment Management inside the Pennsylvania Express University (224 Mateer Building, University Recreation area, PA 16802-1307).



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