Economic production in hospitality and tourism industry

2016 ◽  
Vol 28 (5) ◽  
pp. 1026-1050 ◽  
Author(s):  
Amit Sharma ◽  
Victor Eduardo Da Motta ◽  
Jeong-Gil Choi ◽  
Naomi S. Altman

Purpose Economic production analysis can provide critical perspectives on an industry’s performance. The purpose of this paper is to investigate the factor input intensity of hospitality and related industries, namely, accommodation, food service and amusement, gaming and recreation (AFAGR), compared to other service industries. Design/methodology/approach This paper compared AFAGR with other industries categorized as services by the North American Industry Classification System (NAICS). The NAICS code of up to four digits was used to collect data (US Census Bureau). Findings Results of this paper confirm extant literature that food service is more labor-intensive than other service industries; however, this was not true of accommodation and AGR industries. Similarly, while food service industry was relatively less intermediate input intensive than other service industries, accommodation and AGR were not. There were no significant differences between hospitality and other service industries (AFAGR) in their capital intensity. Another important finding was that while accommodation had constant results to scale, AGR had increasing returns to scale and food service industry was found to have decreasing returns to scale. Research limitations/implications This investigation only looked at the four-digit NAICS-coded industries. International differences could also be investigated in the future. Practical implications Based on theoretical arguments, high labor intensity together with low intermediate input in food service industry suggests that efficiencies could be gained in these businesses. This may also be evident by the decreasing returns to scale that this paper found for the food service industry. These comparisons could guide additional research about the causes, consequences and potential sources of improvement of efficiency of economic productivity in AFAGR. Managers in AFAGR would find it valuable to understand how they might be able to enhance economic output, particularly in the context of the role of labor. Furthermore, any changes in one economic input would have implications on other inputs and possibly on productivity. Social implications Any future recalibration of input intensity in hospitality industries could have both social and economic consequence. Originality/value This paper enhances our understanding of how hospitality industries use economic factors of production. Labor in AFAGR is viewed as a given. This study suggests that food service industry may need to reevaluate its labor productivity, the way it is measured and how it might affect efficiencies. Such understanding could better inform the sources and causes of economic efficiencies in AFAGR industries. Until now, this understanding has mostly been based on relatively scarce comparative systematic analysis.

2015 ◽  
Vol 6 (2) ◽  
pp. 268-291 ◽  
Author(s):  
Sulistyo Prabowo ◽  
Azmawani Abd Rahman ◽  
Suhaimi Ab Rahman ◽  
Asnarulkhadi Abu Samah

Purpose – This study aims to explore various factors that hamper halal certification in food service industries in East Kalimantan, Indonesia. World halal business as well as awareness in halal products and services consumption has been growing rapidly for the past few years. However, many industry players have not yet realized those huge potential concepts of halal business. Food service industries such as restaurants and caterings show less concern in putting priority on the issue of halal certification. Design/methodology/approach – A qualitative data collection technique called nominal group technique (NGT) was used in this study. Four categories of stakeholders participated in this NGT to represent certifying body, consumers, industry player and government. Each category was given a fundamental question: “What factors are hindering restaurant and catering in East Kalimantan, Indonesia, in obtaining halal certification?” Findings – The authors found that through NGT, the authors can obtain top priority issues to be followed up by the respecting institutions which are concerned. The lack of socialization and information have led to the lack of knowledge and awareness. This is the most important issue addressed by the participants. Research limitations/implications – This research was conducted to collect data from various stakeholders in East Kalimantan Province of Indonesia. Considering the vast expanse of Indonesia and different level of development in each province, results of this study could not be generalized as Indonesia situation in general. Practical implications – Halal certification in food service industry gains low interest from industries. This research presents hampering factors in various perspectives and offers some suggestions to overcome those issues accordingly. Originality/value – It is hard to find research paper discussing halal management from the Indonesian perspective. This paper extends the use of NGT in halal management with the perspectives from many stakeholders in food service industries. It provides a relatively new finding from the Indonesian point of view.


2020 ◽  
Vol 12 (2) ◽  
pp. 201-226 ◽  
Author(s):  
Manuel Francisco Morales-Contreras ◽  
Manuel F. Suárez-Barraza ◽  
Marcelo Leporati

Purpose Identification and elimination of Muda (any activity adding cost but not value from the customers’ perspective) is one of the main objectives of Lean service. Whilst there is significant research on implementing lean in manufacturing and some service industries, there is little information related to its application to the fast food service industry. The purpose of this paper is to try to fill in this gap by answering the research question: What type of Muda could be identified from the customers’ perspective within the service production processes in the fast food restaurant industry in Spain? Design/methodology/approach An exploratory case study has been conducted. Three multinational companies were selected and several sites observed in Madrid, Spain. Three methods were used to gather data: document analysis; direct and participative observation and semi-structured interviews. Findings The paper identifies the seven types of Muda: defects, movements, process, inventory, overproduction, transport and delay. The results are discussed for Cases A, B and C, showing that A and B present higher potential for Muda, compared C. Practical implications Threefold value for practitioners and managers: waste identification is an opportunity for non-efficient processes improvement; observation/analysis from the customers’ perspective reveals that customers perceive these inefficiencies; a guideline/audit tool for future assessments. Originality/value The paper contributes to the limited existing literature on lean service in fast food industry and disseminates this information to provide impetus, guidance and support toward increasing the productivity, efficiency, consistency and quality of service.


2015 ◽  
Vol 6 (1) ◽  
pp. 133-147 ◽  
Author(s):  
Ahasanul Haque ◽  
Abdullah Sarwar ◽  
Farzana Yasmin ◽  
Arun Kumar Tarofder ◽  
Mirza Ahsanul Hossain

Purpose – This study aims to identify the factors that influence Malaysian non-Muslim consumers’ perception towards buying halal food products. Design/methodology/approach – A structured close-ended questionnaire was used for data collection through a random distribution to 500 non-Muslim consumers from various states in Malaysia. Findings – Using SPSS package, the factor analysis was able to identify three main variables. Later, the hypotheses were tested using structural equation modelling. This study has indicated that the perception of non-Muslim consumers about halal food products is influenced by their attitude, subjective norm and perceived behavioural control, specifically in the context of Malaysia. Research limitations/implications – This finding will help both the academics and the industry food makers in understanding the perception of non-Muslim consumers towards the concept of halal food products. Practical implications – The outcome of the study can serve as a useful reference to relevant Malaysian statutory bodies on the current perception of the Malaysian non-Muslim consumers towards Malaysian halal agenda. This will also help the industry food makers to serve their customers better as well as maximize their profit through a well-planned marketing campaign. Social implications – It prepares a sound basis for Malaysian policymakers to promote the involvement of Malaysian non-Muslim entrepreneurs within the halal food service industry with the intent of improving the socio-economic strata of its participants and, at the same time, fulfilling their religious obligations in providing halal foods for fellow Muslims. Originality/value – Because very few researches have studied non-Muslim consumers’ perception towards halal food products, the development of halal food theory will help in capitalizing the practices in non-Muslim countries.


foresight ◽  
2019 ◽  
Vol 21 (6) ◽  
pp. 680-694 ◽  
Author(s):  
Jinwon Kang ◽  
Jong-Seok Kim ◽  
Seonmi Seol

Purpose The purpose of this study is to reveal the similarities and differences between the manufacturing and service industries in their prioritization of technologies and public research and development (R&D) roles, along with the complementation of properties of technology and public R&D role in the context of Fourth Industrial Revolution. Design/methodology/approach Two rounds of Delphi surveys were designed to meet the purpose of this study, which used rigorous triangulation techniques. The Delphi method was combined with the brainstorming method in the first-round Delphi survey, while the second-round Delphi survey focused on experts’ judgments. Finally, language network analysis was performed on the properties of technology and public R&D roles to complement the data analyses regarding prioritization. Findings This study identifies different prioritizations of five similar key technologies in each industry, so that it can note different technological impacts to the two industries in the Fourth Industrial Revolution. Smart factory technology is the first priority in the manufacturing industry, whereas artificial intelligence is the first priority in the service industry. The properties of the three common technologies: artificial intelligence, big data and Internet of things in both industries are summarized in hyper-intelligence on hyper-connectivity. Moreover, it is found that different technological priorities in the service and manufacturing industries require different approaches to public R&D roles, while public R&D roles cover market failure, system failure and government failure. The highest priority public R&D role for the service industry is the emphasis of non-R&D roles. Public R&D role to solve dy-functions, focus basic technologies and support challenging areas of R&D is prioritized at the highest for the manufacturing industry. Originality/value This study of the different prioritizations of technologies in the manufacturing and service industries offers practical lessons for executive officers, managers and policy-makers. They, by noting the different technological impacts in the manufacturing and service industries, can prepare for current actions and establish the priority of technology for R&D influencing the future paths of their industries in the context of the Fourth Industrial Revolution. While managers in the service industry should pay greater attention to the technological content of hyper-intelligence and hyper-connectivity, managers in the manufacturing industry should consider smart factory and robot technology.


2019 ◽  
Vol 31 (1) ◽  
pp. 141-160 ◽  
Author(s):  
Heyao Yu ◽  
Sujata A. Sirsat ◽  
Jack A. Neal

Purpose The purpose of this paper is to develop a validated food safety whistle-blowing scale and examine how training influences food handlers’ whistle-blowing, the mediating roles of job satisfaction and food safety self-efficacy and the moderating roles of organization type and gender. Design/methodology/approach A sample of 734 food handlers from the food service industry and 306 food handlers from the food processing industry were recruited. A two-step psychometric process was conducted to validate the scale, and a moderated mediation model was used to examine the mechanisms through which food safety training influences whistle-blowing. Findings The results showed that job satisfaction and self-efficacy fully mediated the relationship between training and whistle-blowing. Organization type moderated the first step of the two indirect paths and gender moderated the second step, thereby supporting the mediated-moderated model. Practical implications The results indicate the influence of food safety training programs on whistle-blowing behaviors and suggest other methods of enhancing employee whistle-blowing through human resource management. Originality/value A validated scale is lacking to measure whistle-blowing in the food safety context, and little research has examined the influence of human resource practices on whistle-blowing. This study provides meaningful insights for researchers by developing and validating food safety the whistle-blowing scale, connecting training with whistle-blowing, and provides useful information for practitioners by offering the methods of enhancing whistleblowing in both the food processing and food service industry.


2020 ◽  
Vol 11 (3) ◽  
pp. 479-494
Author(s):  
Benjamin Appiah Osei ◽  
Neethiahnanthan Ari Ragavan ◽  
Henry Kofi Mensah

Purpose The economy of today has moved toward the fourth industrial revolution (FIR), which is characterized by the adoption of technologies such as cyber-physical systems, internet of things, big data, artificial intelligence and robotics. Globally, there is a lot of awareness created on the influence of the FIR on all industries, including hospitality and tourism. A plethora of studies on FIR have been conducted in the setting of manufacturing industries. Nonetheless, there seems to be in-exhaustive and non-consensual agreement among researchers as to the development and prospects of the FIR for service industries. Therefore, the aim of this paper was to comprehensively review the prospects of the FIR for the hospitality and tourism industry. Design/methodology/approach As a result of the novelty and gaps associated with the FIR in the hospitality literature, the authors explored the concept of FIR using a comprehensive literature review approach. Specifically, this paper reviews existing literature from diverse academic backgrounds, and annotates issues with regard to the evolution and prospects of the FIR for the hospitality industry. Findings Emphatically, the development and principles of FIR were expatiated. Additionally, an exegesis was carried out on the prospects (positives and challenges) of FIR for the hospitality industry. Finally, practical and social implications were also discussed. Originality/value It still remains a discourse among scholars and industry stakeholders as to the prospects of the FIR. This paper clarifies the confusion among researchers and bridges the literature gaps. Moreover, this review serves as a theoretical foundation for future research on the impact of FIR on the hospitality industry.


Author(s):  
Liz Sharples

Purpose This study aims to apply the relatively new concept of customer experience management (CXM) to the pre-consumptive stage within a cruise tourist’s journey. Design/methodology/approach The work will apply CXM to the tourism sector and, in particular to the cruise market. Academics have noted how CXM needs to takes a holistic integrated approach and focus on the complete customer experience. The cruise sector has been selected for this research because, it is the fastest growing tourism sector globally and the pre-consumption stage for cruise passengers is longer than for other vacation types. Findings This study has shown how CXM has emerged from the more traditional marketing concept of relationship marketing and has highlighted its relevance within the tourism industry, in particular, the cruise sector. In addition, the work has shown how adapting CXM to the pre-consumptive phase more fully will enhance consumer relationships and improve business performance. Research limitations/implications This work is conceptual. It is proposed that the research propositions should be verified within the pre-consumptive stage of cruise passenger journeys. Another limitation is that the focus has been solely on the cruise sector and future research could be extended to other tourism service industries. Practical implications This work will provide tourism and other service industry managers with a new strategy to enhance consumer experience and improve business performance in the pre-consumptive stage and extend academic understanding within this stage of a cruise tourist’s vacation. Originality/value This research is significant because CXM is a model, which has been used within service businesses, but had a limited application to the cruise sector and to the pre-consumption timeframe. It is important to understand cruise passengers in this time-frame to encourage positive relationships, to potentially increase revenue opportunities and provide an overall improved consumer experience.


2019 ◽  
Vol 32 (1) ◽  
pp. 59-77 ◽  
Author(s):  
Ana Brochado ◽  
Mike Troilo ◽  
Helena Rodrigues ◽  
Fernando Oliveira-Brochado

Purpose The purpose of this study sought to identify the main themes linked with wine hotel experiences, based on tourists’ narratives shared online, and to investigate whether these narratives vary according to traveler type. Design/methodology/approach Content analysis was carried out on 4,114 online reviews of 52 wine hotels located in 27 wine regions across 11 nations in both the Old and New World. Findings The analysis of these web reviews revealed that narratives can be grouped under 11 themes organized into 7 main dimensions as follows: wine, lodging (i.e. hotel, area and room), food service (i.e. restaurant and breakfast), scenery (i.e. views and vineyards), staff, transportation and recommendation. The main narratives vary according to traveler type. Practical implications Improving the present understanding of wine tourists’ experiences should help wine hotel managers find new approaches to enhancing visitors’ satisfaction. As the dimensions of wine tourism experiences shared online vary according to traveler type, wine managers can design their offer to target families, couples, friends, solo and corporate clients. Originality/value Prior research has identified the need for market segmentation in the wine tourism industry. This research addresses this need by specifying the wine tourism experience according to traveler type. The breadth of the data, and the method of using travelers’ own testimony as opposed to more common surveying are additional contributions for both academics and managers.


2015 ◽  
Vol 27 (7) ◽  
pp. 1662-1684 ◽  
Author(s):  
Juhee Kang ◽  
Liang (Rebecca) Tang ◽  
Ann Marie Fiore

Purpose – The purpose of this paper is to investigate the impact of members’ active participation in customer–brand relationships, considering brand trust and brand commitment in an online community context. It also investigates the moderating effect of monetary sales promotions in building and maintaining customer–brand relationships. Design/methodology/approach – This study is based on an online survey sent to Facebook users who have been engaging with restaurants’ brand pages on Facebook. The empirical data analysis was conducted using structural equation modeling. Findings – Results revealed that members who actively participated in activities on restaurant, Facebook fan pages were likely to feel that the brands were trustworthy and developed commitment toward the brands. The moderating effect of monetary sales promotions between active participation and brand trust was supported. In particular, active participation was more likely to generate brand trust for members who had less interest in monetary sales promotions on restaurant Facebook fan pages. Practical implications – This study provides practical implications for restaurant marketers on the applications of Facebook as a branding tool. Marketers are advised to identify active members who can contribute to the maintenance of the community by encouraging active communication and engaging in marketing activities. As active participants are critical to the success of a restaurant Facebook page, marketers are encouraged to develop marketing strategies that can generate members’ interest and increase participation in a marketing campaign. Originality/value – Although Facebook has been widely used to improve customer–brand relationships in the food service industry, research on the effect of an online community scares. The study proposes a conceptual model to examine the role of active participation in customer–brand relationships and the role of monetary promotions in enhancing customer–brand relationships. Management and marketing strategies for practitioners in the food service industry are suggested.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kadir Çakar ◽  
Şehmus Aykol

Purpose The purpose of this paper is to investigate travellers’ behaviour and examine their reactions to high-tech hotels offering robotic services to customers. Design/methodology/approach Data were gathered from user-generated content within the context of a qualitative research method by analysing the online narratives of travellers at TripAdvisor who visited robotic hotels. Data analysis was realised through content analysis, which revealed various themes and categories of traveller behaviour and reactions to technology. Findings Results show that robotic services significantly improve the quality of service offered to travellers, while positively affecting travellers’ intention to revisit robotic hotels within the context of customer engagement behaviours. Research limitations/implications The results of the present research reveal that the introduction of new technologies in the service industry, such as the robotic butler, can have considerable effects on guest behaviour and attitudes. This field has emerged as a new sub-dimension of customer engagement. Practical implications The use of robots will most likely enhance experiences through interaction between customers and robots. Additionally, in cases where social distancing is required, the use of robots in the hospitality and tourism industry may increase the mobility of people wishing to travel by applying social distancing through use of robots in services. Originality/value The study contributes to the extant literature by identifying the concept of adoption as a sub-dimension deriving from human–robot interaction, thus generating the novelty of the research.


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