Performance Measurement Systems in Tourism, Hospitality, and Leisure Small Medium-Sized Enterprises: A Balanced Scorecard Perspective

Abstract

In response to the United Kingdom’s government’s desire to improve the performance of tourism, hospitality, and leisure small medium-sized enterprises, this article analyzes the performance measurement processes within 10 best practice organizations. Related to contemporary approaches to improving business performance in the management literature, performance measurement approaches are analyzed using the balanced scorecard framework. An exploratory case study approach using the balanced scorecard as the theoretical framework was taken to explore and elicit critical success factors in performance measurement. Results revealed that four key concepts drove measurement and performance evaluation systems across the sample. These were the exercising of budgetary control with a view to increasing total revenue, the undertaking of customer relationship management as a means of improving quality of service and customer retention, the necessity for strategic management in managing internal business processes, and collaboration (both inter and intra) to drive innovation and learning. The article also proposes a balanced scorecard template for hotels.

Customer accounting and marketing performance measures in the hotel industry: Evidence from Australia

“…Previous research has highlighted that accounting-based measures are inadequate in service sectors (Phillips and Louvieris, 2005). Positive relationships have been found between hotel performance and external macroeconomic factors of market concentration (Pan, 2005); money supply (Barrows and Naka, 1994) and gross domestic product (Tang and Jang, 2009).…”

Balanced Scorecard Usage and Performance of Hotels: A Study from the Tourist State of Uttarakhand, India

“…Most organizations rely exclusively on financial performance measures to assess organizational performance (Neely, 1999;Hoque & James, 2000). Critics have argued that these measures are excessively profit-based (Brander Brown & McDonnell, 1995), short-term (Denton & White, 2000), unbalanced (Harris & Mongiello, 2001), unsatisfactory for businesses seeking a competitive advantage (Phillips, 1999;Evans, 2005), past oriented (Atkinson & Brander-Brown, 2001), little market oriented (Phillips & Louvieris, 2005), inadequate for strategic decisions (Kaplan & Norton, 1992), unable to measure value created, unable to measure intangible assets (Norreklit, 2000;Giannetti, Marelli & Vitali, 2002) and nonholistic (Phillips, 1999) and therefore, over reliance on them is no longer appropriate for today's managers.…”

A hotel sustainability business model: evidence from Slovenia

“…Key marketing performance indicators include those for customer satisfaction, loyalty and perceived value to tourists, the contribution of marketing activities (e.g. marketing communications) to business results, brand equity and market position (Briggs, Sutherland, & Drummond, 2007;Fuchs & Weiermair, 2004;Kim & Kim, 2005;Phillips & Louvieris, 2005;Rust, Ambler, Carpenter, Kumar, & Srivastava, 2004;Sin, Tse, Chan, Heung, & Yim, 2006). The marketing group created a list of 22 marketing indicators.…”