Make or buy in the hotel marketing department: transaction costs, financial and relational performance

Abstract

Make or buy in the hotel marketing department: transaction costs, financial and relational performance AbstractThe outsourcing of hotel marketing is one of the strategic decisions that can help hotels manage the distribution channels more efficiently. This study analyzes the factors determining the outsourcing of hotel sales and marketing activities. It uses the transaction costs framework, complemented by the analysis of performance costs and quality. In this context, the possible impact of outsourcing the marketing department on relational and financial performance is analyzed. The results of the study clearly show a close relationship between these variables and current outsourcing. In addition, the increase in outsourcing is determined by low relational quality. These results lead to the conclusion that it is necessary to create new systems and procedures in sales and marketing activities to offer new competitive solutions through outsourcing. Keywords:Outsourcing, marketing and sales, hotel sector, transaction cost, financial, relational. ResumoLa externalización del marketing hotelero es una de las decisiones estratégicas que pueden ayudar a los hoteles a gestionar los canales de distribución de manera más eficiente. Este estudio analiza los factores que determinan la externalización de las actividades de ventas y marketing del hotel. Para ello se usa el marco de costes de transacción, complementado por el análisis de los costes y la calidad del desempeño. En este contexto, se analiza el posible impacto de la externalización del departamento de marketing en el resultado relacional y financiero. Los resultados del estudio muestran claramente una estrecha relación entre estas variables y externalización actual. Además, el aumento de la subcontratación está determinado por una baja calidad relacional. Estos resultados llevan a la conclusión de que es necesario crear nuevos sistemas y procedimientos en las actividades de ventas y marketing para ofrecer nuevas soluciones competitivas a través de la externalización.Palabras clave: Externalización, marketing y ventas, sector hotelero, costes de transacción, financiero, relacional.

Revenue Management Outsourcing: A Hybrid Model of Transaction Cost Economics and Organizational Capability

“…Examples of other relevant streams of knowledge include ease of use, perceived usefulness, and social norms, all of which are acknowledged in the Technology Acceptance Model (Venkatesh & Davis, 2000). In addition, as discussed by Espino-Rodríguez and Rodríguez-Díaz (2017) performance costs and quality could be incorporated to variables already used in this study.…”

To affiliate, or not to affiliate. Transaction costs and governance choices in luxury hotels in Germany

“…According to Williamson (1991, 1988, 1979), the specific level of costs of each transaction is affected by three dimensions of the transaction: asset specificity, uncertainty and frequency. Asset specificity has been the subject of many hotel business related studies analysing make-or-buy decisions (De Vita and Tekaya, 2015; Espino-Rodríguez and Lai, 2014; Espino-Rodríguez and Rodríguez-Díaz, 2017; Ghorbal-Blal, 2011; Han, 2009; Roper et al., 2017) and Harrington and Kendall (2006) call for future researches that test the impact of perception of uncertainty. Our focus is primarily that of generating insights for a better understanding of the effects of uncertainty and frequency on the hotel owner’s choice between hierarchy and market in luxury hotels, rather than on building TCT.…”

“…In addition to the behavioural assumptions on opportunism and bounded rationality, Williamson (1991, 1988, 1979) assumes the specific level of costs of each transaction being affected by three dimensions of the transaction: asset specificity, uncertainty and frequency. Considering that asset specificity has been subjecting to many hotel business-related studies analyzing make-or-buy decisions (De Vita and Tekaya, 2015; Espino-Rodríguez and Lai, 2014; Espino-Rodríguez and Rodríguez-Díaz, 2017; Han, 2009; Roper et al., 2017), our research instead, applying four binary linear regression models, focuses on understanding the impacts of uncertainty and frequency on the hotel owner’s choice between hierarchy and market in luxury hotels.…”