How does hotel design contribute to property performance?

Abstract

Purpose The purpose of this paper is to test the relationships between a hotel’s design quality and the property’s business performance. Design/methodology/approach Hotel guests’ assessments of the design quality of hotels that they recently visited are tested using the design quality indicator (DQI). Business performance is measured using indexed values for each property’s occupancy, average daily rate (ADR) and revenue per available room (RevPAR). The data are analyzed using exploratory factor analysis and a variation of a hedonic pricing model. Findings Factor analysis reduced the DQI instrument to 19 measurement items. Factors that measure navigability and signage positively impact occupancy index. Factors that measure flexible space usage negatively impact the RevPAR and ADR indices. Factors that reflect aesthetic constructs, including Urban & Social Integration and Character & Form, positively impact the RevPAR and ADR indices. Research limitations/implications The study examines a nationwide sample of guests from two full-service brands of a single multi-brand hotel company. The study provides a parsimonious, validated design measurement instrument and a revised hedonic pricing analysis. Practical implications Hoteliers can use this technique to assist with resource allocation decisions. Aesthetic elements, including the building’s Urban & Social Integration with its surroundings and its Character & Form, lead to higher ADR and RevPAR performance. Managers should ensure a coherent layout and good signage program to drive occupancy. Originality/value This study offers a technique to measure design quality and a new method of performing a hedonic pricing analysis.

Pubscape: innovation by design in the British pub

“…Pubs innovate through the use of 'form and function' (Strauss, 2017), using design to enable strategic positioning to attract consumers (Countryman and Jang, 2006;Zemke et al, 2018).…”

“…While retaining functional elements, the pubs 'engaged the imagination and created a memorable experience' appealing to both utilitarian and hedonic consumer needs (Babin et al, 1994;Childers et al, 2001, 514). Designing locations to evoke specific emotional effects enhances the probability of purchase (Alfakhri et al, 2017), adding value (Dubé and Renaghan, 2000) and improving business performance (Zemke et al, 2018). Addressing earlier research on the need to change (Pratten 2003(Pratten , 2007, customers were attracted to the designs, especially women and those with higher disposable income seeing the pubs as fitting a more aspirational lifestyle, i.e., picking up on global trends related to what is 'cool' and distinctive (Strauss 2017).…”

Evaluating customer perceived value of housing based on location factor and economic value

“…Kolbe et al (2012) use the location as a reference assessment of the value of a site based on the rating geographical conditions of the site. Huderek-Glapska and Trojanek (2013) and Zemke et al (2018) evaluate aspects of using the criteria of accessibility and transportation that meet the needs of households, businesses, and other aspects as a basic reference in assessing the location factor accompanied by noise pollution. This indicates that the location has an important role in the value of a home.…”

Natural plants in hospitality servicescapes: the role of perceived aesthetic value

“…In the hospitality servicescape, plants act as atmospheric elements. A stream of hospitality research has provided evidence for the effect of environmental atmospherics on behavioral intentions (Jang et al, 2011) and specific outcomes such as perceived service quality, satisfaction, brand trust (Erkmen and Hancer, 2019), loyalty (Chen et al, 2015) and hospitality property performance (Zemke et al, 2018). The behavioral effects of atmospherics can be mediated by the image of the hospitality service and its perceived value (Ryu et al, 2012).…”