Service Facilities and Hotel Performance Empirical Evidencefrom Hotel-Level Data in Thailand
Article Sidebar
Published:
Sep 6, 2018
Keywords:
Service Facilities Hotel Performance Tourist Demand Internet Thailand
Main Article Content
Abstract
The main purpose of this paper is to examine the effects of service facilities on performance within the hotel industry. We use secondary data on the hotel industry in Thailand, which covering 2,627 hotel sample, as a case study. Our estimated regression indicates that service facilities affect native (Thai) guests and foreign (non-Thai) guests differently, which can lead to different strategic actions for each group. Among all kinds of service facilities, providing Internet serviceseems tobethegreatest contribution to hotel performance.Therefore,hoteliers operating in Thailand should make providing a sound Internet connection a priority in order to ensure the successful short-term and long-term performance and development of their
business.
Article Details
Section
Articles
Copyright to published manuscripts becomes the property of the Graduate School of Development Economics, National Institute of Development Administration. Reproduction of all or part of a Development Economic Review (DER) article by anyone, excluding author(s), is prohibited, unless receiving our permission.
Disclaimer: Opinions expressed in articles published in this journal are those of the author (s) and do nto necessarily represent opinions of the Graduate School of Development Economics, National Institute of Development Administration. Trade and proprietary names are only for identification and not constitute our endorsement.
References
Akbaba, A. (2006). Measuring service quality in the hotel industry: A study in a business
hotel in Turkey. International Journal of Hospitality Management, 25(2), 170-192.
Assaf, A., & Cvelbar, L.K. (2010). The performance of the Slovenian hotel industry: evaluation
post-privatisation. International Journal of Tourism Research, 12(5), 462-471.
Baltescu, C.A., & Doscor, D. (2014). The assessment of hotel services in Poiana Brasov resort.
Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences, 7(2), 65-70.
Batra, A. (2008). Foreign tourists’ motivation and information source(s) influencing their
preference for eating out at ethnic restaurants in Bangkok. International Journal of Hospitality & Tourism Administration, 9(1), 1-17.
Bohdanowicz, P. & Zientara, P. (2009). Hotel companies’ contribution to improving the
quality of life of local communities and the well-being of their employees. Tourism
and Hospitality Research, 9(2), 147-158.
Buhalis, D. & Law, R. (2008). Progress in information technology and tourism management:
20 years on and 10 years after the Internet—The state of eTourism research.
Progress in Tourism Management, 609–623. doi: doi:10.1016/j.tourman.2008.01.005
Chen, K.Y. (2014). Improving importance-performance analysis: The role of the zone of
tolerance and competitor performance. The case of Taiwan’s hot spring hotels.
Tourism Management, 40, 260-272. doi: doi:10.1016/j.tourman.2013.06.009
Chu, R.K.S. & Choi, T. (2000). An importance-performance analysis of hotel selection factors
in the Hong Kong hotel industry: a comparison of business and leisure travellers.
Tourism Management, 21(4), 363-377.
Claver-Cortés, E., Pereira-Moliner, J., Tarí, J.J., & Molina Azorín, J.F. (2008). TQM,
managerial factors and performance in the Spanish hotel industry. Industrial
Management & Data Systems, 108(2), 228-244.
Erto, P. & Vanacore, A. (2002). A probabilistic approach to measure hotel service quality.
Total Quality Management, 13(2), 165-174.
Gagian, L. (2010). The importance of accommodation activity in the hotel industry. Annals of
Eftimie Murgu University Resita, Fascicle II, Economic Studies, 231-236.
Gatsinzi, J., & Donaldson, R. (2010). Investment challenges in the hotel industry in Kigali,
Rwanda: Hotel managers’ perspectives. Development Southern Africa, 27(2), 225-240.
Haber, S., & Reichel, A. (2005). Identifying Performance Measures of Small Ventures—The
Case of the Tourism Industry. Journal of Small Business Management, 43(3), 257-286.
Harrington, D., & Akehurst, G. (1996). Service quality and business performance in the UK
hotel industry. International Journal of Hospitality Management, 15(3), 283-298.
He, Z., Kim, H.K., & Moon, J.Y. (2015). A study on the effect of hotel intelligent fusion system
on hotel strategy, work process, employee satisfaction, and hotel performance.
Multimedia Tools and Applications. doi: DOI 10.1007/s11042-014-2011-5
Hjalager, A.M. (1996). Agricultural diversification into tourism: Evidence of a European
Community development programme. Tourism Management, 17(2), 103-111.
Hsieh, L.F., Lin, L.H., & Lin, Y.Y. (2008). A service quality measurement architecture for hot
spring hotels in Taiwan. Tourism Management, 29, 429-438. doi: doi:10.1016/j.
tourman.2007.05.009
Kandampully, J. & Suhartanto, D. (2000). Customer loyalty in the hotel industry: the role of
customer satisfaction and image. International Journal of Contemporary Hospitality
Management, 12(6), 346-351.
León-Darder, F., Villar-García, C., & Pla-Barber, J. (2011). Entry mode choice in the
internationalisation of the hotel industry: a holistic approach. Service Industries
Journal, 31(1), 107-122.
Leong, C.C. (2008). Service performance measurement: Developing customer perspective
calculators for the hotel industry. In Advances in Hospitality and Leisure, 4, 101-120.
doi: 10.1016/S1745-3542(08)00005-2
McDowall, S. (2010). International Tourist Satisfaction and Destination Loyalty: Bangkok,
Thailand. Asia Pacific Journal of Tourism Research, 15(1), 21-42.
McDowall, S., & Choi, Y. (2010). A comparative analysis of Thailand residents’ perception of
tourism’s impacts. Journal of Quality Assurance in Hospitality & Tourism, 11(1), 36-55.
Mohsin, A., & Lockyer, T. (2010). Customer perceptions of service quality in luxury hotels in
New Delhi, India: an exploratory study. International Journal of Contemporary
Hospitality Management, 22(2), 160-173.
Narangajavana, Y., & Hu, B. (2008). The Relationship Between the Hotel Rating System,
Service Quality Improvement, and Hotel Performance Changes: A Canonical
Analysis of Hotels in Thailand. Journal of Quality Assurance in Hospitality & Tourism, 9(1), 34-56.
National Statistical Office of Thailand. (2010). Operating expenses of hotels and guest houses
in 2009 by size of establishment an region. Retrieved September 18, 2015, from
https://web.nso.go.th/en/survey/hotelg/data_hotelg/561126_2010_WholeKingdom.pdf
National Statistical Office of Thailand. (2012a). Number of persons engaged in hotels and
guest houses by work status, sex, size of establishment and region. Retrieved September 22, 2015, from https://web.nso.go.th/en/survey/hotelg/data_hotelg/Whole Kingdom.pdf
National Statistical Office of Thailand. (2012b). Operating expenses of hotels and gues houses
in 2011 by size of establishment an region. Retrieved September 18, 2015, from https://web.nso.go.th/en/survey/hotelg/data_hotelg/561126_2012_WholeKingdom.pdf
Prayag, G., Dookhony-Ramphul, K., & Maryeven, M. (2010). Hotel Development and Tourism
Impacts in Mauritius: Hoteliers’ Perspectives on Sustainable Tourism. Development
Southern Africa, 27(5), 697-712.
Qu, H., Ryan, B., & Chu, R. (2000). The Importance of Hotel Attributes in Contributing to
Travelers’ Satisfaction in the Hong Kong Hotel Industry. Journal of Quality Assurance
in Hospitality & Tourism, 1(3), 65-83.
Qu, H., & Sit, C.Y. (2007). Hotel Service Quality in Hong Kong: An Importance and Performance
Analysis. International Journal of Hospitality & Tourism Administration, 8(3), 49-72.
Royal Thai Embassy of Singapore. (2012). Thai international travel fair 2012. Retrieved July
30, 2015, from https://www.thaiembassy.sg/announcements/thai-internationaltravel-fair-2012
The World Bank. (2012). Thailand Economic Monitor - December 2012. Retrieved September 18,
2015, from https://www.worldbank.org/content/Worldbank/document/TEM2012.pdf
Tuta, L., & Micu, C. (2014). The evolution of the performance indicators specific to the hotel
offer in Europe. Agricultural Management / Lucrari Stiintifice Seria I, Management Agricol, 16(4), 65-70.
Vujovic, V. P. (2013). Structural-dimensional concept of tourism service quality. Singidunum
Journal of Applied Science, 10(2), 32-39.
Wang, C.H., Chen, K.Y., & Chen, S.-C. (2012). Total quality management, market orientation
and hotel performance: The moderating effects of external environmental factors.
International Journal of Hospitality Management, 31(1), 119-129.
Wilkins, H., Merrilees, B., & Herington, C. (2007). Towards an understanding of total service
quality in hotels. International Journal of Hospitality Management, 26(4), 840-853.
World Travel & Tourism Council. (2014). Economic impact 2014 Thailand Retrieved September
17, 2015, from https://www.wttc.org/-/media/files/reports/thailand2014.pdf
Xu, H., Liu, Y., Song, L., & Wang, R. (2014). The comparisson of service innovation between
high level hotels and budget hotels in China. Tourism and Hospitality Development
Between China and EU, 9-21. doi: 10.1007/978-3-642-35910-1_2
Yu, M.-M., & Lee, B.C.Y. (2009). Efficiency and effectiveness of service business: Evidence
from international tourist hotels in Taiwan. Tourism Management, 30(4), 571-580.
hotel in Turkey. International Journal of Hospitality Management, 25(2), 170-192.
Assaf, A., & Cvelbar, L.K. (2010). The performance of the Slovenian hotel industry: evaluation
post-privatisation. International Journal of Tourism Research, 12(5), 462-471.
Baltescu, C.A., & Doscor, D. (2014). The assessment of hotel services in Poiana Brasov resort.
Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences, 7(2), 65-70.
Batra, A. (2008). Foreign tourists’ motivation and information source(s) influencing their
preference for eating out at ethnic restaurants in Bangkok. International Journal of Hospitality & Tourism Administration, 9(1), 1-17.
Bohdanowicz, P. & Zientara, P. (2009). Hotel companies’ contribution to improving the
quality of life of local communities and the well-being of their employees. Tourism
and Hospitality Research, 9(2), 147-158.
Buhalis, D. & Law, R. (2008). Progress in information technology and tourism management:
20 years on and 10 years after the Internet—The state of eTourism research.
Progress in Tourism Management, 609–623. doi: doi:10.1016/j.tourman.2008.01.005
Chen, K.Y. (2014). Improving importance-performance analysis: The role of the zone of
tolerance and competitor performance. The case of Taiwan’s hot spring hotels.
Tourism Management, 40, 260-272. doi: doi:10.1016/j.tourman.2013.06.009
Chu, R.K.S. & Choi, T. (2000). An importance-performance analysis of hotel selection factors
in the Hong Kong hotel industry: a comparison of business and leisure travellers.
Tourism Management, 21(4), 363-377.
Claver-Cortés, E., Pereira-Moliner, J., Tarí, J.J., & Molina Azorín, J.F. (2008). TQM,
managerial factors and performance in the Spanish hotel industry. Industrial
Management & Data Systems, 108(2), 228-244.
Erto, P. & Vanacore, A. (2002). A probabilistic approach to measure hotel service quality.
Total Quality Management, 13(2), 165-174.
Gagian, L. (2010). The importance of accommodation activity in the hotel industry. Annals of
Eftimie Murgu University Resita, Fascicle II, Economic Studies, 231-236.
Gatsinzi, J., & Donaldson, R. (2010). Investment challenges in the hotel industry in Kigali,
Rwanda: Hotel managers’ perspectives. Development Southern Africa, 27(2), 225-240.
Haber, S., & Reichel, A. (2005). Identifying Performance Measures of Small Ventures—The
Case of the Tourism Industry. Journal of Small Business Management, 43(3), 257-286.
Harrington, D., & Akehurst, G. (1996). Service quality and business performance in the UK
hotel industry. International Journal of Hospitality Management, 15(3), 283-298.
He, Z., Kim, H.K., & Moon, J.Y. (2015). A study on the effect of hotel intelligent fusion system
on hotel strategy, work process, employee satisfaction, and hotel performance.
Multimedia Tools and Applications. doi: DOI 10.1007/s11042-014-2011-5
Hjalager, A.M. (1996). Agricultural diversification into tourism: Evidence of a European
Community development programme. Tourism Management, 17(2), 103-111.
Hsieh, L.F., Lin, L.H., & Lin, Y.Y. (2008). A service quality measurement architecture for hot
spring hotels in Taiwan. Tourism Management, 29, 429-438. doi: doi:10.1016/j.
tourman.2007.05.009
Kandampully, J. & Suhartanto, D. (2000). Customer loyalty in the hotel industry: the role of
customer satisfaction and image. International Journal of Contemporary Hospitality
Management, 12(6), 346-351.
León-Darder, F., Villar-García, C., & Pla-Barber, J. (2011). Entry mode choice in the
internationalisation of the hotel industry: a holistic approach. Service Industries
Journal, 31(1), 107-122.
Leong, C.C. (2008). Service performance measurement: Developing customer perspective
calculators for the hotel industry. In Advances in Hospitality and Leisure, 4, 101-120.
doi: 10.1016/S1745-3542(08)00005-2
McDowall, S. (2010). International Tourist Satisfaction and Destination Loyalty: Bangkok,
Thailand. Asia Pacific Journal of Tourism Research, 15(1), 21-42.
McDowall, S., & Choi, Y. (2010). A comparative analysis of Thailand residents’ perception of
tourism’s impacts. Journal of Quality Assurance in Hospitality & Tourism, 11(1), 36-55.
Mohsin, A., & Lockyer, T. (2010). Customer perceptions of service quality in luxury hotels in
New Delhi, India: an exploratory study. International Journal of Contemporary
Hospitality Management, 22(2), 160-173.
Narangajavana, Y., & Hu, B. (2008). The Relationship Between the Hotel Rating System,
Service Quality Improvement, and Hotel Performance Changes: A Canonical
Analysis of Hotels in Thailand. Journal of Quality Assurance in Hospitality & Tourism, 9(1), 34-56.
National Statistical Office of Thailand. (2010). Operating expenses of hotels and guest houses
in 2009 by size of establishment an region. Retrieved September 18, 2015, from
https://web.nso.go.th/en/survey/hotelg/data_hotelg/561126_2010_WholeKingdom.pdf
National Statistical Office of Thailand. (2012a). Number of persons engaged in hotels and
guest houses by work status, sex, size of establishment and region. Retrieved September 22, 2015, from https://web.nso.go.th/en/survey/hotelg/data_hotelg/Whole Kingdom.pdf
National Statistical Office of Thailand. (2012b). Operating expenses of hotels and gues houses
in 2011 by size of establishment an region. Retrieved September 18, 2015, from https://web.nso.go.th/en/survey/hotelg/data_hotelg/561126_2012_WholeKingdom.pdf
Prayag, G., Dookhony-Ramphul, K., & Maryeven, M. (2010). Hotel Development and Tourism
Impacts in Mauritius: Hoteliers’ Perspectives on Sustainable Tourism. Development
Southern Africa, 27(5), 697-712.
Qu, H., Ryan, B., & Chu, R. (2000). The Importance of Hotel Attributes in Contributing to
Travelers’ Satisfaction in the Hong Kong Hotel Industry. Journal of Quality Assurance
in Hospitality & Tourism, 1(3), 65-83.
Qu, H., & Sit, C.Y. (2007). Hotel Service Quality in Hong Kong: An Importance and Performance
Analysis. International Journal of Hospitality & Tourism Administration, 8(3), 49-72.
Royal Thai Embassy of Singapore. (2012). Thai international travel fair 2012. Retrieved July
30, 2015, from https://www.thaiembassy.sg/announcements/thai-internationaltravel-fair-2012
The World Bank. (2012). Thailand Economic Monitor - December 2012. Retrieved September 18,
2015, from https://www.worldbank.org/content/Worldbank/document/TEM2012.pdf
Tuta, L., & Micu, C. (2014). The evolution of the performance indicators specific to the hotel
offer in Europe. Agricultural Management / Lucrari Stiintifice Seria I, Management Agricol, 16(4), 65-70.
Vujovic, V. P. (2013). Structural-dimensional concept of tourism service quality. Singidunum
Journal of Applied Science, 10(2), 32-39.
Wang, C.H., Chen, K.Y., & Chen, S.-C. (2012). Total quality management, market orientation
and hotel performance: The moderating effects of external environmental factors.
International Journal of Hospitality Management, 31(1), 119-129.
Wilkins, H., Merrilees, B., & Herington, C. (2007). Towards an understanding of total service
quality in hotels. International Journal of Hospitality Management, 26(4), 840-853.
World Travel & Tourism Council. (2014). Economic impact 2014 Thailand Retrieved September
17, 2015, from https://www.wttc.org/-/media/files/reports/thailand2014.pdf
Xu, H., Liu, Y., Song, L., & Wang, R. (2014). The comparisson of service innovation between
high level hotels and budget hotels in China. Tourism and Hospitality Development
Between China and EU, 9-21. doi: 10.1007/978-3-642-35910-1_2
Yu, M.-M., & Lee, B.C.Y. (2009). Efficiency and effectiveness of service business: Evidence
from international tourist hotels in Taiwan. Tourism Management, 30(4), 571-580.