The valuation effects of hotel mergers

This study aims to evaluate the merger effect of hotel mergers between 1981 and 2019 and assess which theoretical framework mergers in the lodging industry would conform. Previously, no work has been done about the nature of hotel mergers using the combined return, while this lack of thoroughness in assessing the motivation of those mergers has triggered different interpretations. The design of this study follows the traditional framework of an event study by assessing various types of cumulative abnormal returns around the announcement date. The key finding of this study suggests that the nature of hotel mergers strongly supports the synergy hypothesis. In order to explore the causal inferences of this result by bidder and target, an additional analysis was conducted by regressing the cumulative abnormal returns on accounting measures as well as merger- and hotel industry–specific variables. This panel data analysis showed that in a merger where both the bidder and target are affected, the amount of total debt, being engaged in the casino business, and whether the merger was involving a stock swap sent out positive signals to the market, whereby longer duration and higher deal value lifted the undervalued target. JEL Classifications: G34 (Mergers; Restructuring; Corporate Governance)

The synergistic impact between internationalization and supply-and-demand interaction on firm performance: a study of environmental responsibility in social networking service

Purpose This study aims to investigate the relationship between environmental activities and consumer engagement on firm performance according to supply-and-demand perceptions, and further examines the moderating role of internationalization to demonstrate the effects of environmental activities more comprehensively. Design/methodology/approach Three panel regression models have been used. In total, 510 environmental activities and consumers’ negative engagement collected from the official Facebook brand page are analyzed to examine the study’s models for a period of 13-years (2008–2020). The findings persist when this study compares the estimates resulted from different econometrics methods. Findings The study’s results indicate an insignificant effect of environmental activities and consumer engagement on firm performance, respectively, while the interaction effect on firm performance is significant and negative. However, when internationalization plays the moderating role, this study provides new evidence that such negativity impact is no longer effective in the lodging industry as firms expand internationally. Practical implications This study offers strategic insights to managers who are concerned about the detrimental effect of negative consumer engagement that the firm-consumer relationship mitigates the negativity bias in negative engagement. Hotels should actively implement internationalization as a key strategy while practicing environmental activities with integrity. Originality/value Despite the importance of green management in the social networking service context, little is known about its effect and value on firm performance. This study provides new evidence for the real effectiveness of internationalization by demonstrating its role in the lodging industry.

Transient and Persistent Cost Efficiency in Hotels in the Canary Islands

The aim of this study is to determine the presence or otherwise of transient and/or persistent cost inefficiency in the lodging industry. To do so, we applied the method proposed by Filippini and Greene, within a stochastic frontier panel data framework. Our empirical analysis is based on data for the hotel industry in the Canary Islands (Spain), an important destination for European tourists, for the period 2002-2015. Using a stochastic translog cost frontier model, we show that the industry’s real output during the study period could have been achieved at 17% less cost if persistent (systematic) inefficiency were eliminated, and at 24% less cost in the absence of transient (nonsystematic) inefficiency. We also present evidence of factors that strongly influence hotels’ transient cost efficiency, such as the positive effects of market share (in total revenue terms) and certain management characteristics, including the degree of independence with respect to shareholders, the experience in the industry (years in business) and the number of subsidiaries.

Pentingnya Housekeeping bagi Suatu Hotel

The general public tends to think of Housekeeping as the Department that: makes the head, empties the ashtray and waste basked, tidies up the bathroom and leaves fresh towels. The truth of the matter is of course that it takes more manpower to accomplish. Housekeeping's almost countless function than those of any other Department in the lodging industry. Housekeeping's responsibility may begin with fabrics, and progress to the selection and purchase of all furniture and furnishings; it encompasses not only their cleaning but their maintenance, repair, refurbishment and eventual replacement. Areas of concern include: sleeping rooms, meeting rooms, halls and elevator, all considered "front of the house" The designation also includes all other public areas from lobbies to washrooms to restaurant and cocktail lounges. Outdoor areas such as pools and patios. Housekeeping also oversees almost the entire "back of the house", from locker rooms to employee dining, virtually everything.

Social Networking Service as a Marketing Technology Tool and Sustainable Business in the Lodging Industry: Investigating the Difference across Older and Younger Age Groups among Tourists

Despite the importance of social networking services (SNSs), their engagement and their role as a critical marketing technology tool in explaining travellers’ approach behaviours are not well known. The present study investigated the influence of SNS engagement on traveller loyalty generation for a chain hotel brand and the health of this business by considering the roles of brand attitude, awareness, trust, and attachment and the impact of age. Fostering customers’ SNS engagement in the hospitality industry will be a vital constituent of hotels’ sustainable business. A quantitative process was used to meet the research objectives. The proposed research framework encompassing these variables was successfully developed. The framework’s efficiency in predicting brand loyalty was also demonstrated. Our results showed that SNS engagement considerably enhances loyalty and other study constructs. Attachment had a salient role in boosting loyalty. In addition, age had a moderating influence. The study constructs maximized the influence of SNS engagement on loyalty as mediators. Overall, our results considerably increase our understanding regarding the role of SNS engagement in the formation of traveller loyalty to chain hotel brands and the sustainability of such businesses.