Cornell Hospitality Quarterly recent issues

Toward a Broader Scope

2008-08-19

Continuous Improvement

2008-08-19

In Brief: Executive Summaries of This Issue's Feature Articles

2008-08-19

Industry Fundamentals Create a Game of "What If . . ."

Smith, R. A. — 2008-08-19

PKF Industry Analysis: 2008 Trends in the Hotel Industry Report: Unit-Level Profits Grew 7.2 Percent in 2007

Mandelbaum, R. — 2008-08-19

The Compelling "Hard Case" for "Green" Hotel Development

Butler, J. — 2008-08-19

Hotel developers and managers may be wary of the current emphasis on "green" hotel development, because such trends have come and gone in the past. This time, however, consumers will almost certainly continue to demand that hotels join other commercial real estate operators in constructing and operating their buildings in accordance with standards established by the U.S. Green Building Council. The so-called LEED standards (Leadership in Energy and Environmental Design) are the basis of certification for qualifying buildings. Governments are beginning to mandate reduced energy use and emissions. Whereas building a green hotel used to cost a premium, current studies show that the cost of building to LEED standards is not greater than conventional approaches, while those buildings are healthier for occupants and less expensive to operate. Although retrofitting buildings does save energy, a better approach is to construct green hotels. Current incentives for energy-saving construction and operation may diminish, and early adopters will have the best chance at those incentives.

Sustainable Tourism: The Case of the Blue Ridge National Heritage Area

Stoddard, J. E., Evans, M. R., Dave, D. S. — 2008-08-19

Tourist preferences for sustainable tourism products vary according to their demographic and socioeconomic characteristics. Results from a large sample in the Blue Ridge National Heritage Area found preference differences based on gender, age, education level, and income, as well as whether the tourist was a day-tripper or overnight visitor. The study found that the bulk of visitors originate in the southeastern United States, suggesting that promotions for the Blue Ridge area should be directed to those living in North Carolina and vicinity. Results from research such as this can assist sustainable tourism organizations to target promotions of various tourism activities to those who would be most interested.

Using Tourist Travel Habits and Preferences to Assess Strategic Destination Positioning: The Case of Costa Rica

Zhaoping Liu, , Siguaw, J. A., Enz, C. A. — 2008-08-19

A study of 118 U.S. travelers to Costa Rica is analyzed to highlight how consumer preferences and patterns of consumption can be used to reveal the status of a particular destination in its life cycle. Using a model for destinations' psychographics developed by S. C. Plog, the analysis shows that Costa Rica may be increasingly appealing to the middle of the psychographic distribution. While this trend is not inherently bad, it challenges Costa Rica's destination managers to consider carefully what type of further development they will allow. This research illustrates the means by which other destinations can assess their own positioning to ensure that they are using strategies to attract the most profitable tourist segments.

Information Technology in Hotel Management: A Framework for Evaluating the Sustainability of IT-Dependent Competitive Advantage

Piccoli, G. — 2008-08-19

Information technology can provide hospitality firms with a sustained competitive advantage, provided the technology complements operations. Based on interdisciplinary research findings with regard to the sustainability of IT-enabled competitive advantage, this article provides a framework that can help both hospitality scholars and managers formally analyze existing and proposed IT-dependent strategic initiatives. The chief element in achieving a competitive advantage is to identify the drivers of response lag, which is the time it takes for competitors to imitate an IT initiative—if they are able to do so. The drivers can be grouped into one of the following four barriers to erosion of competitive advantage: (1) IT-resources barrier, (2) complementary-resources barrier, (3) IT-project barrier, and (4) preemption barrier.

The Role of Technology in Restaurant Revenue Management

Kimes, S. E. — 2008-08-19

Technology systems can support restaurant managers' efforts to improve sales and profits through revenue management. By subdividing a meal into its component sections, a manager can determine which systems to apply at a particular stage for the purpose of providing the greatest revenue benefit for a particular restaurant. In adopting technology, managers must first conduct a financial analysis to determine whether the technology's cost will be more than offset by revenue improvements. If that financial calculation is favorable, management must then consider benefits to both employees and customers and must also take into account employees' and customers' perceptions of the technology's utility and ease of use. Without those elements in place, the technology faces dim prospects no matter what its prospective financial benefit.

Recognizing the Emotional Element in Service Excellence

Johanson, M. M., Woods, R. H. — 2008-08-19

As the interaction between the service provider and guest is at the core of the service experience, this study emphasizes the important role of managing behavior and emotions in the delivery of quality service. This study attempts to identify strategies used by hotels as they assist their employees in dealing with the realities of emotional labor.

A Sociable Atmosphere: Ambient Scent's Effect on Social Interaction

Zemke, D. M., Shoemaker, S. — 2008-08-19

This exploratory study examines how introducing an ambient scent affects the interactions between people within a meeting room. The study demonstrates behavioral mapping, a procedure for testing people's responses to ambient factors. The study found that introducing an ambient scent into a meeting room significantly increased the number of social interactions between the study's participants. However, the significance of the effect of the scent was moderate. The role of scent in the hospitality industry seems promising, although the small number of observations, along with certain other factors, limits the possibility for generalizing the results of this study.

Book Review: Organizational Behavior for the Hospitality Industry, by Florence Berger and Judi Brownell. Englewood Cliffs, NJ: Prentice Hall, 2009. 480 pp. $88.00. ISBN13: 978-0132447379

Kiester, P. — 2008-08-19

Book Review: Organizational Behavior for the Hospitality Industry by Florence Berger and Judi Brownell. Englewood Cliffs, NJ: Prentice Hall, 2009. 480 pp. $88.00. ISBN-13: 978-0132447379

Perdue, J. — 2008-08-19

Expanding the Roundtable Program

2008-04-29

Focusing on Gaming

2008-04-29

Executive Summaries of this Issue's Feature Articles

2008-04-29

Barometer of the Hotel Industry

Smith, R. A. — 2008-04-29

PKF Industry Analysis: Hotel Operators Massage More Profits from Their Spa Operations

Mandelbaum, R., Lerner, G. — 2008-04-29

It is commonly understood that spas were once an afterthought for operators of hotels and resorts. Yet, as living a healthy and better lifestyle has become one of the population's top priorities, spas have grown in popularity and are viewed as essential elements to a hotel or resort's success rather than being just a luxury. To aid hotel owners and operators during the spa investment decision process, as well as assist spa department managers benchmark their operations, PKF Hospitality Research (PKF-HR) has analyzed the 2006 financial performance of hotel spa departments. The sample was divided into two categories: resorts and urban hotels. The data come from PKF-HR's Trends in the Hotel Industry database.

A Qualitative Analysis of Slot Clubs as Drivers of Casino Loyalty

Hendler, F., Latour, K. A. — 2008-04-29

The slot club is a very common type of loyalty program in the casino industry. In this research, the authors look at the deep meanings and emotions of a slot club for tourists and frequent local customers at a Las Vegas mega casino resort using an in-depth interview technique, the Zaltman Metaphor Elicitation Technique (ZMET). Results indicate that the opportunities for casino loyalty programs to establish emotional bonds with the customer lie in the capacity of reflecting human qualities in the slot club service delivery process, such as memory, creativity, and flexibility. The results also indicate that the slot club brings different meanings to different customer groups and that these emotional connections (or lack thereof) are best elucidated via this qualitative research technique that uses images, rather than words, to guide the in-depth interview. The authors discuss the implications of the results for loyalty programs as well as how this research technique might be used in other sectors of the hospitality industry.

Decreases in a Slot Machine's Coefficient of Variation Lead to Increases in Customer Play Time

Lucas, A. F., Singh, A.K. — 2008-04-29

Profits generated from slot operations are critical to the success of all casinos, yet little research has addressed the nature of the customer experience regarding game interaction. The relationship between a reel slot player's time on device and the pay table's coefficient of variation (CV) is examined via computer simulation. The pay table CV is found to be inversely related to the player's expected time on device, as measured by pulls per losing player (PPLP). Findings confound the popular notion that par alone (i.e., house advantage) serves as a legitimate proxy for play time and bolster the research suggesting that standard deviation is the dominant force behind time on device, at the single-trip grain.

Radio Frequency Identification: Advanced Intelligence for Table Games in Casinos

Wyld, D. C. — 2008-04-29

Radio frequency identification (RFID) allows for objects to be identified electronically through the use of radio waves. RFID can be applied to table games in casinos by allowing gaming operators to gain the same levels of customer and game-play data in table game operations as they presently have in the slot area. Using chips imprinted with RFID, gaming companies can monitor game play, prevent instances of chip counterfeiting and theft, and (by identifying addicted gamblers) promote responsible gaming. Beyond casino chips, casinos will eventually be able to install RFID on playing cards, again to give casinos a better picture of their customers, but also to reduce opportunities for cheating.

Fear and Managing in Las Vegas: An Analysis of the Effects of September 11, 2001, on Las Vegas Strip Gaming Volume

Eisendrath, D., Bernhard, B. J., Lucas, A. F., Murphy, D. J. — 2008-04-29

This article provides an analysis of the impacts of the events of September 11, 2001, on certain gaming business volume on the Las Vegas Strip. Almost immediately after these events, management teams commenced with layoffs and project postponements, in anticipation of a long and painful recovery period. The authors' intervention analysis, however, reveals an abrupt decline lasting five months, indicating a relatively rapid recovery. Interestingly, this type of recovery appears to be similar to that which has been observed in other literature examining previous terrorist attacks. In the concluding discussion, the authors highlight the lessons of both history and empirical inquiry in hopes of helping managers understand the dynamics of terrorism impacts on the hospitality industry in general and on the gaming industry in particular.

Hamilton, New Zealand: Divergent Attitudes When the Casino Came to Town

Mohsin, A., Lockyer, T. — 2008-04-29

The introduction of a casino into a community, as evidenced from a large number of studies undertaken over the years in different parts of the globe, suggests that casino business affects the community's social and economic structure. This research considers the case of the introduction of a casino into Hamilton, a city in New Zealand with a population of approximately 129,000. Based on 945 responses, it is of particular note that differences in views regarding the casino were evident between the two genders and between those who had patronized the casino and those who had not visited. The results indicate that women and nonvisitors were consistently more negative about the casino's effects on the community than were men and those who patronized the casino.

From Maverick to Mafia to MBA: Gaming Industry Leadership in Las Vegas from 1931 through 2007

Bernhard, B. J., Green, M. S., Lucas, A. F. — 2008-04-29

This article presents a historical analysis of three eras in the history of Las Vegas gaming industry leadership: a maverick era, a mafia era, and an MBA era. Within each period, the article highlights the roles of key figures that shaped the industry's evolving landscape. The second section examines management applications that emerged from each of these periods, with a focus on four areas: (1) operating principles, (2) government relations, (3) "backlash management," and (4) the ways in which the mythologies of these eras have actually been used in the selling of the city itself. The article concludes by summarizing the successes and failures of this evolution.

Leading Change with the 5-P Model: "Complexing" the Swan and Dolphin Hotels at Walt Disney World

Ford, R., Heisler, W., Mccreary, W. — 2008-04-29

An effective change process must account for all aspects related to that change. This article presents a "5-P" framework for implementing change and illustrates the application of the framework with a case situation in which the operations at the Swan and Dolphin Hotels at Walt Disney World were consolidated. The five "P"s are as follows: purpose, priorities, people, process, and proof. Briefly put, change should have a stated purpose; specific targets of change should be identified and prioritized; people potentially affected by the change should be identified and brought into the change process; the process should use appropriate levels of direction, participation, and consultation; and the proof should demonstrate visibly and believably what the change accomplished. While the Swan-Dolphin complexing was not without bumps along the way, the approach resulted in a successful change implementation that saved $4 million in annual expenses.

A Commentary on "Leading Change with the 5-P Model: `Complexing' the Swan and Dolphin Hotels at Walt Disney World"

Brownell, J. — 2008-04-29

The management of the Swan and Dolphin Hotels found value in using the 5-P Model for implementing planned change. While such clearly defined methods can achieve desired outcomes, this commentary suggests that a symbolic lens is also useful in capturing and addressing important features of the change process. The success of a symbolic perspective depends in large measure on the leader's ability to listen and to understand how organizational members make sense of the changes taking place. Each stage in the 5-P process is discussed in light of insights gained from a leader who listens and recognizes.

The 5-P Model Is SPOT On

Davidoff, D. M. — 2008-04-29

The 5-P Model is a well-constructed method for change management, particularly with its requirement of establishing proof of the change's effects. Comparing it to another framework, SPOT (strategy, process, organization, and technology), the two approaches work similarly. The change method to be used depends in part on the personality of the change leaders and nature of the organization.

Commentary on "Driving Demand for the Quarterdeck"

Kelly, B. — 2008-04-29

The Quarterdeck Beachside Villas are certainly not unique in facing the challenges of seasonality in beachside resorts. Can Doug justify financially keeping the Quarterdeck open from November to March with an average occupancy of 16 percent or 1.9 rooms per day? His number one focus should be investment. If Doug wants to make the Quarterdeck a year-round destination, he needs to invest and give the customers a year-round product—weatherproof the building, open the restaurant and bar area, maybe build a small spa facility. Selling "experience" and integrated product bundles rather than discounts will improve the ARR and also the customer experience. The viability of these options may be dependent on increasing the existing villa stock.

Synergies for HR in Hospitality

Sherwyn, D. — 2008-01-18

A New Name for a New Volume

Canina, L. — 2008-01-18

In Brief: Executive summaries of this issue's feature articles

2008-01-18

Barometer of Hotel Room Revenue: A Regular Service of Smith Travel Research

Smith, R. A., Lesure, J. D. — 2008-01-18

Contextual Factors and Cost Profiles Associated with Employee Turnover

Tracey, J. B., Hinkin, T. R. — 2008-01-18

To gain insights about the nature and expenses of specific aspects of employee turnover, the authors gathered data from thirty-three U.S. hotels and found that the costs of turnover were generally higher for (1) high-complexity jobs; (2) independent properties; (3) high—average daily rate (ADR) properties; (4) large properties; and (5) high-occupancy properties. The authors also identified several activities associated with recruitment, selection, and training that were linked to lower overall costs of turnover. The results shed new light on the nature and consequences of turnover and provide some prescriptive guidance for managing this serious operational and strategic challenge.

Accessibility of Hospitality and Tourism Websites: A Challenge for Visually Impaired Persons

Mills, J. E., Han, J.-H., Clay, J. M. — 2008-01-18

An analysis of twenty websites operated by hospitality and tourism companies found numerous issues that would interfere with the use of those websites by persons with visual impairments. While the U.S. courts have been mixed on the question of whether the Americans with Disabilities Act applies to websites, the wise course is for hotel and tourism companies to ensure that those with visual impairments are easily able to use their sites. One source of design guidelines is the Web Content Accessibility Priority 1 Guidelines, developed by the World Wide Web Consortium.

E-Mail Marketing by International Hotel Chains: An Industry-Practices Update

O'Connor, P. — 2008-01-18

E-mail's utility as a marketing medium is being limited by unprecedented growth in spam—unsolicited commercial bulk e-mail messages. Given the access that hotels have to their customers' personal data and the potential for using this resource for marketing and promotional purposes, this study sets out to establish whether international hotel chains conform to the legislative guidelines found in the U.S. Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act of 2003 with regard to use of personal data for e-mail marketing purposes. By monitoring multiple e-mail accounts over a one-year period, the study found that not only is hotel companies' behavior highly ethical with regard to their use of customers' personal data, but in fact it may serve as an example of best practice for other businesses.

Roundtable Retrospective 2007: Dealing with Sexual Harassment

Sherwyn, D. — 2008-01-18

A review of sexual harassment case law was presented at the 2007 Labor and Employment Roundtable at the Cornell University School of Hotel Administration. The foremost lesson is that employers should take steps to prevent harassment, but failing that, an employer should maintain and follow a strong policy on sexual harassment and immediately make an effective response to a complaint.

Outback Steakhouse in Korea: A Success Story

Lee, K., Khan, M. A., Ko, J.-Y. — 2008-01-18

Outback Steakhouse Korea has proven to be a successful casual-dining transplant from the United States. Highlighting the company's competitive advantages and core competencies, this study describes the critical success factors for this restaurant company. Key among the success factors is a decentralized structure that takes advantage of the business acumen of managing partners. A flexible approach that allowed the Korean chain to respond to the country's cultural patterns and market preferences is balanced with a strict approach to hiring and training.

Creating a Competitive Advantage by Building Resource Capability: The Case of Outback Steakhouse Korea

Enz, C. A. — 2008-01-18

The case of Outback Steakhouse Korea provides almost a textbook example of a five-point framework for competitive advantage. The framework suggests that companies must manage and blend resources in the following five categories: (1) financial resources, (2) physical resources, (3) human resources, (4) organizational knowledge and learning, and (5) general organizational resources (including brand names and relationships with stakeholders). Outback Korea has deftly combined resources in these five categories for considerable advantage and must continue to do so.

Outback Steakhouse in Korea: A Commentary

Verma, R. — 2008-01-18

Economics is only the beginning of the puzzle for successful international expansion by food-service firms. As depicted in the accompanying case study, Outback Korea seems to have considered such other factors as local culture and proper entry strategy.

Progress Report: The Center at Fifteen

Sherwyn, D. — 2007-10-15

Looking Back, Looking Ahead

Canina, L. — 2007-10-15

In Brief: Executive summaries of this issue's feature articles

2007-10-15

Barometer of Hotel Room Revenue: A Regular Service of Smith Travel Research

Smith, R. A., Lesure, J. D. — 2007-10-15

Internet Hotel Reservations: The "Terms and Conditions" Trap

Wilson, R. H. — 2007-10-15

A review of U.S. case law finds that the web-based approach used by most hotel companies to alert customers to the terms and conditions for making an internet reservation might not hold up in the event of a lawsuit. Most courts will enforce a so-called click wrap covenant when an individual makes a reservation or purchase on the company website. In the click wrap procedure, a reservation cannot be completed until the customer clicks the "agree" button to the terms and conditions of sale. However, most hotel websites use a slightly different approach, known as "browse wrap," in which the terms and conditions are available on the site but the reservation can be completed without the customer's express assent. The terms and conditions usually dictate the controlling legal jurisdiction or mandate arbitration for disagreements, and thus it is in the hotel company's interest to demonstrate that would-be guests have read and definitively agreed to those terms and conditions.

How Organizational Standards and Coworker Support Improve Restaurant Service

Susskind, A. M., Kacmar, K. M., Borchgrevink, C. P. — 2007-10-15

A model examining the relationship between restaurant employees' reactions to their work environment and their jobs as service providers and guest satisfaction was tested among twenty-five restaurants from a casual dining restaurant chain. In the model, the relationship between guest service employees' work-related perceptions and attitudes are connected to guests' reported satisfaction. Results show that employees' perceptions of the presence of organizational standards for service delivery were strongly related to their perceptions of receiving adequate support from coworkers and supervisors to perform their jobs. Employees' perceived support from coworkers was significantly related to service providers' guest orientation (commitment to their guests), while perceived support from supervisors proved to be a weak influence on guest orientation. Ultimately, service providers' guest orientation was strongly related to guests' satisfaction with their service experience in the restaurant.

Perceptions of Chinese Hotels

Ryan, C., Gu Huimin, — 2007-10-15

The evaluations of 941 respondents who had recently stayed in a Chinese hotel revealed that guests' satisfaction with the hotels were influenced by hotels' star ratings. By comparing the importance-evaluation matrices for each category of hotel, a clear trend emerges in which higher levels of satisfaction are discernable for five-star and deluxe hotels than for one- and two-star hotels. At all levels, however, respondents gave high ratings to the key attributes of cleanliness and bed comfort. The findings raise a question of how to ensure satisfaction for China's one- and two-star hotels.

Taiwan's Hotel Rating System: A Service Quality Perspective

Su, C.-S., Sun, L.-H. — 2007-10-15

This study applies content analysis to compare four hotel rating systems, in the United Kingdom, United States, China, and Taiwan as well as to compare the evaluating methods and service-quality measurement of the four hotel rating systems. Focusing on Taiwan's newly revised hotel-evaluation schema, the study analyzes the Criteria of Hotel Service Quality Evaluation established by the Taiwan Tourism Bureau in the light of the five SERVQUAL dimensions. Though Taiwan's hotel rating system is strong on assurance and tangibles, the study suggests that the system would be made more effective by adding factors for reliability, responsiveness, and empathy. Surveys should also be conducted on an ongoing basis to clarify and incorporate consumer viewpoints and to keep hotel rating systems updated. These measures would also increase acceptance and recognition of the hotel rating system by consumers.

Cuba at the Crossroads: The Role of the U.S. Hospitality Industry in Cuban Tourism Initiatives

Khrushchev, S., Henthorne, T. L., Latour, M. S. — 2007-10-15

The U.S. embargo has clearly been costly to the Cuban people, in terms of their health and well-being. Based upon the first author's firsthand, informal personal interactions with the Cuban people, including Cuban president Fidel Castro, as well as the authors' recent qualitative research in Cuba, this article contends that these past decades have fostered a deep degree of distrust between our two peoples. Despite this distrust, U.S. dollars are desired in the Cuban economy. As background, this case offers an historical chronology of Cuban tourism, including the "Special Period" following the demise of the Soviet Union. Current insight is offered into the nature and depth of distrust of the United States, based on interviews with Cuban hospitality managers. Recommendations are then offered for mitigating this problem including a call for in-depth, multifaceted basic and applied cross-cultural research to support intelligent cultural "bridge building" and joint ventures.

Toward an Understanding of the Tourism Potential in Cuba

Kirk, J. M. — 2007-10-15

The author argues that the U.S.-led boycott of and travel ban to Cuba has been abandoned by most other nations, to the detriment of U.S. interests. Rather than continue the boycott, opening tourist channels could well pave the way to rapprochement between the two estranged governments.

Tourism and the Transformation of Cuba Revisited

Macaulay, J. — 2007-10-15

Changes in Cuba's tourism industry will be slow to come, if they come at all, because the Cuban people have become acclimated to a command economy. Moreover, those who work in Cuba's hospitality industry, particularly general managers, have little incentive to change from the current arrangement to a U.S.-style model. Nevertheless, if title disputes can be resolved and if U.S. companies are willing to operate under Cuba's joint-venture structure, they could profit handsomely should the U.S. embargo be lifted.

The Challenge of Cuban Tourism: A Commentary on "Cuba at the Crossroads"

Backman, K. — 2007-10-15

Prospects for opening joint ventures in Cuba by U.S. hotel operators remain dim, despite inevitable changes in the island's government. Expatriate Cubans remain adamantly opposed to the current regime, thus providing a political headwind. Beyond that, a question arises of why Cuba's tourist interests would want to invite more leakage of tourism revenues beyond the European and other interests now on the island. Although ecotourism presents an attractive mechanism for expanding Cuba's tourist arrivals, the island's industry is currently focused on sun and sand tourism. Finally, the likely clash of operating styles might well doom any effort toward a U.S.—Cuban joint venture.

Acknowledgment of Ad Hoc and Practitioner Reviewers

2007-10-15

INDEX to CORNELL HOTEL AND RESTAURANT ADMINISTRATION QUARTERLY

2007-10-15