Hotel Online 
News for the Hospitality Executive


advertisement




Cornell Studies Examine Global Hotel Industry Strategy
and Restaurant Social Media

Ithaca, NY, May 20, 2013 - Hotel revenues in Asia's gateway cities are subject to global forces, according to one of the newest reports issued by the Cornell Center for Hospitality Research (CHR) at the School of Hotel Administration. A second recently issued report finds that the restaurant industry is embracing social media, but not all restaurants have a clear strategy for using social media sites. Also newly available is a summary of industry strategy presentations from the Cornell Hospitality Research Summit proceedings. The reports and proceedings are available at no charge from the CHR.

Global Factors Are Strong Drivers of Asia Hotels Revenues

A study of global and local factors that drive changes in hotels' revenue per available room (RevPAR) in eight major Asian cities found that the revenues for the hotels in these cities are strongly subject to global forces. The study, "Common Global and Local Drivers of RevPAR in Asian Cities," by Crocker H. Liu, Pamela C. Moulton, and Daniel C. Quan, is available at no charge from the Cornell Center for Hospitality Research. Liu, Moulton, and Quan are all faculty members at the Cornell School of Hotel Administration.

"When we initially interviewed the hotel managers, they listed many local events and factors as potential drivers of their revenue, and they were not focused on international forces. But we determined that local or regional events must be extremely large and even disrupting to offset the effects of global forces on hotels' revenue," said Moulton. "For example, the 2008 Chinese Olympics and the 2010 Shanghai Expo moved the needle. Sadly, so did the 2011 Japanese tsunami and Thailand floods. Overall, however, global forces, such as Chinese and U.S consumer confidence had noticeable effects for these eight gateway cities."

One factor, the number of tourist arrivals, is always positively associated with RevPAR changes in the eight cities. Other factors have various levels of influence on revenues. In addition to consumer confidence, two other factors that drive RevPAR in most of the eight cities are inflation and Chinese real estate development (as a proxy for China's GDP). At one extreme, global factors explain over 90 percent of the changes in RevPAR in Seoul. At the other extreme, local factors explain 66 percent of the changes in RevPAR in Bangkok. Moulton and her coauthors suggest that these findings give hoteliers a window into the factors that drive their properties' revenues and allow investors a mechanism to make a more accurate risk assessment.

Cornell Study Finds U.S. Restaurants Diving into Social Media

Restaurant operators have moved strongly into social media, but a survey of 166 restaurant managers finds a mixed picture in the way restaurants use social media. The study, "Social Media Use in the Restaurant Industry: A Work in Progress," by Abigail M. Needles and Gary M. Thompson, found that many restaurants are moving ahead without having well-defined social media goals. Needles, a Ph.D. student at Texas A&M University, is a graduate of the Cornell School of Hotel Administration, where Thompson is a professor. The study is available at no charge from the Cornell Center for Hospitality Research.

"Our respondents believe social media are important, but they have a difficult time in terms of measuring whether social media activities increase customer loyalty, bring in new customers, or boost revenues," said Needles. "We found that these restaurant operators generally rely on non-financial measurements to determine their return on investment. In fact, we found a lot of uncertainty surrounding how to measure the financial returns of social media."

Added Thompson: "Restaurant operators have the right idea about social media, but they need to focus on a particular goal and a specific market segment. Then they can select the appropriate social media channel. Most of the restaurants in our study are on Facebook, but perhaps Foursquare or blogs would be a better choice, once they refine their goals."

Industry Strategy: A Key Focus of the Cornell Hospitality Research Summit

The importance of strategic thinking resonated in numerous presentations at the 2012 Cornell Hospitality Research Summit (CHRS), as explained in a newly released proceedings, "Hotel and Restaurant Strategy: Key Elements for Success," by Glenn Withiam. The new proceedings publication, which provides summaries of more than a dozen CHRS strategy presentations, is available at no charge from the Cornell Center for Hospitality Research.

Since the goal of most strategies is to build customers' patronage and loyalty, CHRS presenters aimed many of their analyses at the foundations of customer brand loyalty, including employees' attitudes and actions, a well designed physical environment, and an appropriate set of service offerings. For a strategy to succeed, organizations must align their activities with their stakeholders' attitudes. A critical element in brand management is to measure whether brand marketing efforts are hitting their intended target.

Like other hospitality industry segments, restaurants are moving rapidly to integrate technology in their operations, notably with social media. Although loyalty programs are an inevitable part of the competitive scene, true loyalty comes through excellence in service that involves attention to detail, hospitality, and appropriate service. For many chains, franchisees are integral to ensuring the brand's success and thus it's important to consider the dynamics of a franchise system. Consumer research is also critical to a restaurant's success.

About The Center for Hospitality Research
A unit of the Cornell School of Hotel Administration, The Center for Hospitality Research (CHR) sponsors research designed to improve practices in the hospitality industry. Under the lead of the center's 72 corporate affiliates, experienced scholars work closely with business executives to discover new insights into strategic, managerial and operating practices. The center also publishes the award-winning hospitality journal, the Cornell Hospitality Quarterly. To learn more about the center and its projects, visit www.chr.cornell.edu


Contact:

Jane Henion
607.254.8987
jmh222@cornell.edu




Receive Your Hospitality Industry Headlines via Email for Free! Subscribe Here
 

 To Learn More About Your News Being Published on Hotel-Online Inquire Here

Also See: CNBC's Simon Hobbs to Emcee Cornell Hospitality Icon & Innovator Awards Gala; Tom Pritzker to Receive Icon of the Industry Award; Steve Ells to Receive the Innovator Award / May 2013

Cornell CHR Study Details Preferences of Outbound Travelers from Mainland China; Depicts Focused Travelers Who Seek to Experience other Cultures and Prefer Full-Service Hotels in Urban Settings / March 2013

Cornell Studies Analyze Restaurant Marketing Strategies and Hospitality Industry Challenges / February 2013

Cornell Study Finds High-End Hotel Transaction Prices are Moderating While Small Hotel Deal Pricing Continues to Increase / February 2013

Cornell Study's Paint a Mixed Picture for Restaurant Daily Deals and Sustainability in Hospitality Making Slow but Steady Progress / December 2012

Confirming What Has Long Been Suspected - Social Media Reviews Drive Hotel Reservations; Cornell Center for Hospitality Research Reports a 1 Point Increase for Reviews Allows for an 11.2% Rate Increase / November 2012

Cornell Hospitality Quarterly Study Documents Hotels' Recovery after Terrorist and Economic Crises; U.S. Hotels Made Unexpectedly Rapid Recovery / November 2012

Two New Studies from the Cornell Center for Hospitality Focus on Service Improvement; How to Make the Most of Service Scripts and Human Resources Marketing / October 2012

Cornell Hospitality Research Summit Focused on Rapid Changes in Hospitality Industry / October 2012

Innovative Cornell Hospitality Research Summit Opens Monday, October 8, 2012 - Only a Few Slots Remaining for Registration / October 2012

Cornell School of Hotel Administration Turns 90; Program Began with One Professor and 20 Students who Attended their First Class on September 20, 1922 / September 2012

Cornell Center for Hospitality Research Reports Examine How Hotels Report their Carbon Footprints and How Hospitality Stocks React to Corporate Earnings Surprises / September 2012

Cornell Hospitality Research Summit Preview: Over 90 Presenters & Panelists Share Top Industry Ideas / September 2012

Early Registration and Award Nominations for Cornell Hospitality Research Summit Close Soon / August 2012

Cornell Hospitality Research Summit Will Feature Over 80 Industry-focused Presentations / August 2012

Hotel Industry Stocks Appear to React More Sensitively to Interest Rate Changes by the Federal Reserve According to New Study, 'Saving the Bed from the Fed' by Cornell Center for Hospitality Research; Also Available, a Brief on Chain Growth, 'Age, Size, and Survival and Growth of Franchise Chains' / July 2012

Cornell's Center for Hospitality Research Hospitality Tools Series Posts New Items; A New Restaurant Table Tool, a Roundtable Discussion on International Challenges and Opportunities, and a Profile of Schneider Electric's Energy University / May 2012

Cornell Center for Hospitality Research to Present 2012 Hospitality Research & Analytics Award; Honor Recognizing Hospitality Industry Best Practices Driven by Research and Analytics will be Awarded During the Cornell Hospitality Research Summit in October 2012 / May 2012

Cornell Center for Hospitality Research Names 2012 Industry Relevance Award Winners Recognizing Faculty who Have Created a Report or Tool that has had a Significant Impact on the Hospitality Industry / May 2012

New Tool from Cornell Center for Hospitality Research Helps Hotels Communicate Their Green Story; Additional Reports Analyze Corporate Strategies / April 2012

New Reports from Cornell Center for Hospitality Research Focus on Effects of Hotel Strategic Pricing and Financial Benefits of Management Integrity / March 2012

Paula Zahn to Emcee the Cornell Hospitality Icon & Innovator Awards Gala Helping to Honor the Tisch Family, the 2012 Recipients of the Cornell Icon of the Industry Award / February 2012

Tisch Family Named 2012 Recipients of the Cornell Icon of the Industry Award / December 2011

Two New Cornell Center for Hospitality Research Studies Examine How Social Couponing is Working for the Hospitality Industry / Novmeber 2011

Cornell's Hospitality Design Roundtable Aimed to Define the Rapidly Expanding Boutique Hotel Segment and What Customers Want / October 2011

Cornell Research Surveys Restaurant Takeout Operators Regarding Online Ordering and Introduces a Spreadsheet-based Tool Assisting Hotel Managers in Making Strategic Comparisons Among Competitors / September 2011

Cornell Center for Real Estate and Finance Presents HVS Hotel Valuation Software Tool Free of Charge / August 2011

Cornell Center for Hospitality Research Study Finds Customers Give More Credibility to the Green Activities of Large Restaurant Companies When Small Competitors Launch Green Initiatives; Consumers are Skeptical When Large Chains Promote Initiatives in the Absence of These Small Competitors / August 2011

August 2011 Cornell Hospitality Quarterly Features Study of Hotel Guests' Preferences Regarding Sustainability in Hotels / July 2011

Cornell Study Proposes Uniform Sustainability Reporting Framework for the Hospitality Industry / July 2011

Employment Law, Service Innovation, and Brand Management Addressed at the Cornell Center for Hospitality Research Spring Roundtables / May 2011

Cornell Hospitality Research Summit Participants Say that the Focus of Internet Presence Must be on Customer Experiences to Build Your Brand / May 2011

Cornell Hospitality Research Summit Explores the Dimensions of Electronic Distribution and Revenue Management; Chief Thread is Need for Hotels to Establish and Maintain Price Integrity / April 2011

Cornell Study Finds That Well-Designed Hotel Energy Saving Treatments Do Not Diminish the Guest Experience; Study Tested Reduced Television Power Levels and Alterations in Bathroom Lighting in Guest Rooms by Surveying 192 Guests of the Hotel Statler / March 2011

Cornell Report Outlines Six Step Process on How to Develop a Destination Brand; Student Team Created Plan for Marketing and Branding Zambia as a Tourism Destination / January 2011


To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch

Home | Welcome | Hospitality News | Industry Resources

Please contact Hotel.Onlinewith your comments and suggestions.