How to Approach Hotel Performance Measurement? A Conceptualization of Key Determinants

Abstract

Purpose -Market changes put new challenges for the hotel business. Hotels require and rely on measuring business performance, wherein inadequate measurement may compromise hotel performance and thus competitiveness on the tourism market. Performance measurement is an important managerial activity and a crucial support in company management and business decision making. Unfortunately, recent findings on measuring hotel performance are insufficient and incomplete. Therefor, the purpose of this paper is to foster innovation in hotel performance measurement and fill the findings gap in conceptualization of hotel performance key determinants by proposing an innovative approach to the conceptualization of hotel performance measurement. Design -Introductory remarks in the research problem are followed by hotel performance literature review, further key determinants of hotel performance are elaborated and a conceptual approach for measuring hotel performance is proposed, the paper ends with managerial implications and concluding remarks. Methodology -The objective is achieved by (i) a review of the hotel performance literature, (ii) the amalgamation of relevant findings in hotel performance researches, and (iii) proposing a hotel performance measurement framework. Approach -Based on the review of the relevant literature in the field of research findings will be summarized, critically reviewed and with theoretical footing a new innovative conceptual approach for measuring hotel performance will be proposed. Findings -The conceptual framework of hotel performance measurement inculd internal, external and temporal components. By approaching measurement of hotel performance internal, external and temporal determinants should be considered. Hotel characteristics stand out in the literature as crucial determinant of internal environment that determine business performance. Tourists, concretely destination demand represent a crucial element of the external environment of the hotel business. Further, the temporal component refers to tourism seasonality. It is necessary to explore hotel performance per season: low, medium and high season, to the contrary, research performance in a single time point or the aggregate annual data may lead to incorrect conclusions. Originality of the research -The contribution of research is a new innovative approach of hotel performance measurement conceptualization. This paper provides understanding of hotel performance determinants and fills an identified gap in the hotel performance measurment literature. Research findings are an important contribution to future research of hotel performance.

Key performance indicators in short-term rental accommodation

“…This paradigm has led to a change in organisational thinking, where frameworks solely focused on financial results have been replaced by more holistic approaches where non-financial indicators are included in the process of monitoring and evaluating performance (Bergin-Seers & Jago, 2007; Harris & Mongiello, 2001; Holjevac, 2003; Mia & Chenhall, 1994; Mia & Patiar, 2001). The competitiveness of an accommodation unit is influenced by its ability to assess performance, and this process must consider both the characteristics of the unit itself, as well as the external factors of the surrounding environment (Córluka, Mikinac, & Peronja, 2017).…”

Crisis Management Performance of Upscale Hotels in the Greater Bay Area, China: A Comparative Study in a Complex Institutional Situation

“…According to Chen and Barnes [41], hotel performance is thus described as the conversion of inputs into outputs to accomplish defined outcomes. Ćorluka, Mikinac and Peronja [42] point out that hotel performance is also the accomplishment of defined measurable goals and the effective carrying out of predefined responsibilities. However, there is lack of consensus regarding how to evaluate this concept [42].…”

“…Ćorluka, Mikinac and Peronja [42] point out that hotel performance is also the accomplishment of defined measurable goals and the effective carrying out of predefined responsibilities. However, there is lack of consensus regarding how to evaluate this concept [42]. Flexibility in collaboration, leverage capability to internal environment and external resources are the indicators for hotel performance evaluation [43,44].…”