Protecting Your Assets: A Well-Defined Credit Policy Is The Key

In - Protecting Your Assets: A Well-Defined Credit Policy Is The Key – an essay by Steven V. Moll, Associate Professor, The School of Hospitality Management at Florida International University, Professor Moll observes at the outset: “Bad debts as a percentage of credit sales have climbed to record levels in the industry. The author offers suggestions on protecting assets and working with the law to better manage the business.” “Because of the nature of the hospitality industry and its traditional liberal credit policies, especially in hotels, bad debts as a percentage of credit sales have climbed to record levels,” our author says. “In 1977, hotels showing a net income maintained an average accounts receivable ratio to total sales of 3.4 percent. In 1983, the accounts receivable ratio to total sales increased to 4.1 percent in hotels showing a net income and 4.4 percent in hotels showing a net loss,” he further cites. As the professor implies, there are ways to mitigate the losses from bad credit or difficult to collect credit sales. In this article Professor Moll offers suggestions on how to do that. Moll would suggest that hotels and food & beverage operations initially tighten their credit extension policies, and on the following side, be more aggressive in their collection-of-debt pursuits. There is balance to consider here and bad credit in and of itself as a negative element is not the only reflection the profit/loss mirror would offer. “Credit managers must know what terms to offer in order to compete and afford the highest profit margin allowable,” Moll says. “They must know the risk involved with each guest account and be extremely alert to the rights and wrongs of good credit management,” he advocates. A sound profit policy can be the result of some marginal and additional credit risk on the part of the operation manager. “Reality has shown that high profits, not small credit losses, are the real indicator of good credit management,” the author reveals. “A low bad debt history may indicate that an establishment has an overly conservative credit management policy and is sacrificing potential sales and profits by turning away marginal accounts,” Moll would have you believe, and the science suggests there is no reason not to. Professor Moll does provide a fairly comprehensive list to illustrate when a manager would want to adopt a conservative credit policy. In the final analysis the design is to implement a policy which weighs an acceptable amount of credit risk against a potential profit ratio. In closing, Professor Moll does offer some collection strategies for loose credit accounts, with reference to computer and attorney participation, and brings cash and cash discounts into the discussion as well. Additionally, there is some very useful information about what debt collectors – can’t – do!

Revisiting the Ethics of Financial Executives in the Lodging Industry

This study revisited ethics in the hospitality industry and involved a randomly selected sample of lodging financial executives taken from the current membership roster of the Hospitality Financial and Technology Professionals (HFTP). After responding to a number of demographic questions, financial executives were asked to respond to 16 business scenarios that involved the issue of ethics. In addition, financial executives were asked if they would or would not do what the controller did in each scenario. Finally, responses of financial executives in the current study were compared to the responses of financial executives in a previous study. Findings indicate that there is considerable disagreement among financial executives regarding the ethical dimensions of common business scenarios

Smoking Restrictions, Bans Rise in Hospitality Industry

With the rise of smoking restrictions and bans in the hospitality industry the author discusses solutions that are implemented to protect the workforce and guests from involuntary smoking. Historical and societal contexts are drawn, and enforcement of smoking bans as well as their economic impact is explored in an international perspective, primarily since US researchers have propelled the research on smoking and health issues. The author illustrates that there has been no way to avoid enforcements of strict smoking restrictions, and the struggle to do so could just delay the process and waste resources.

Productivity: A Review For The Hospitality Manager

Hospitality managers have a number of methods available to them to enhance employee productivity. The author discusses five major concepts that can lead to successful results in the hospitality industry.

Role Stress, Emotional Exhaustion, and Job Satisfaction in the Hotel Industry: The Moderating Role of Supervisory Support

The purpose of this study is to investigate supervisory support as a moderator of the effects of role conflict and role ambiguity on emotional exhaustion and job satisfaction. This study also examines the moderating role of supervisory support on the relationship between emotional exhaustion and job satisfaction. Data were collected from a sample of frontline hotel employees in Northern Cyprus. The aforementioned relationships were tested based on hierarchical multiple regression analysis. The results demonstrate that supervisory support mitigates the impact of role conflict on emotional exhaustion and further reveal that supervisory support reduces the effect of emotional exhaustion on job satisfaction. There is no empirical support for the rest of the hypothesized relationships. Implications of the empirical results are discussed, and future research directions are offered.

The Food Service Industry Environment: Market Volatility Analysis

In their dialogue entitled - The Food Service Industry Environment: Market Volatility Analysis - by Alex F. De Noble, Assistant Professor of Management, San Diego State University and Michael D. Olsen, Associate Professor and Director, Division of Hotel, Restaurant & Institutional Management at Virginia Polytechnic Institute and State University, De Noble and Olson preface the discussion by saying: “Hospitality executives, as a whole, do not believe they exist in a volatile environment and spend little time or effort in assessing how current and future activity in the environment will affect their success or failure. The authors highlight potential differences that may exist between executives' perceptions and objective indicators of environmental volatility within the hospitality industry and suggest that executives change these perceptions by incorporating the assumption of a much more dynamic environment into their future strategic planning efforts. Objective, empirical evidence of the dynamic nature of the hospitality environment is presented and compared to several studies pertaining to environmental perceptions of the industry.” That weighty thesis statement presumes that hospitality executives/managers do not fully comprehend the environment in which they operate. The authors provide a contrast, which conventional wisdom would seem to support and satisfy. “Broadly speaking, the operating environment of an organization is represented by its task domain,” say the authors. “This task domain consists of such elements as a firm's customers, suppliers, competitors, and regulatory groups.” These are dynamic actors and the underpinnings of change, say the authors by way of citation. “The most difficult aspect for management in this regard tends to be the development of a proper definition of the environment of their particular firm. Being able to precisely define who the customers, competitors, suppliers, and regulatory groups are within the environment of the firm is no easy task, yet is imperative if proper planning is to occur,” De Noble and Olson further contribute to support their thesis statement. The article is bloated, and that’s not necessarily a bad thing, with tables both survey and empirically driven, to illustrate market volatility. One such table is the Bates and Eldredge outline; Table-6 in the article. “This comprehensive outline…should prove to be useful to most executives in expanding their perception of the environment of their firm,” say De Noble and Olson. “It is, however, only a suggested outline,” they advise. “…risk should be incorporated into every investment decision, especially in a volatile environment,” say the authors. De Noble and Olson close with an intriguing formula to gauge volatility in an environment.

Casino Gaming in the U.S.: Past, Present, and Future

The casino segment of the hospitality industry is experiencing unprecedented growth. As a result, many academics and practitioners alike cannot stay abreast of developments in the field. The author addresses the situation by providing an overview of casino development in the United States from an historical perspective, a review of current developments, and some predictions about the future.

Food Service Operations in the Cruise Industry

Food service on a cruise ship presents some unique challenges. A review of food service in the cruise industry is presented along with some ideas on the future. The case is made for a change in traditional operations with a move toward greater use of computer-driven management techniques.

The Travel Industry: What's in a Name?

The travel and tourism industry is enormous in both size and importance. There can be little doubt that the field is striving to accommodate the diversity of opinion concerning what the industry is and how it can be improved and enlarged even further. Resistance to critiquing long-held beliefs about the industry may inhibit its future. Deconstruction, a postmodern method of analysis, is proposed as one tool with which to engage in reflection upon what the industry is and where it may be headed.

Identifying Training Challenges in Hospitality Industry: An Exploratory Approach

The current study investigated the effects of job satisfaction and organizational commitment on organizational citizenship behavior and turnover intentions. The study also examined the effect of organizational citizenship behavior on turnover intentions. Frontline employees working in five-star hotels in North Cyprus were selected as a sample. The result of multiple regression analyses revealed that job satisfaction is positively related to organizational citizenship behavior and negatively related to turnover intentions. Affective organizational commitment was found to be positively related to organizational citizenship behavior. However, the study found no significant relationship between organizational commitment and turnover intentions. Furthermore, organizational citizenship behavior was negatively associated with turnover intentions. The study provides discussion and avenues for future research.

The Influence of Purchase Confidence on Information Source Selection: Implications for Hospitality Industry

Whether the product of choice is a restaurant, vacation resort or hotel, it is important for hospitality marketers to understand how consumers treat purchase decisions and the influence purchase confidence and situation play on that decision. This study investigated the role purchase confidence plays with knowledge in the selection of sources of information during purchase decisions. The results indicate sources of information are perceived differently by consumers and depending on the purchase situation, subjective knowledge is influenced by purchase confidence affecting the source of information considered when making a purchase decision. The results also indicated that those with high purchase confidence and subjective knowledge will rely on themselves as a source when making a purchase rather than a retail clerk or published material.

Consequences of interorganizational information systems: An empirical investigation of the effects of EDI use on interorganizational relationships in the retail industry

This dissertation examines the consequences of Electronic Data Interchange (EDI) use on interorganizational relations (IR) in the retail industry. EDI is a type of interorganizational information system that facilitates the exchange of business documents in structured, machine processable form. The research model links EDI use and three IR dimensions--structural, behavioral, and outcome. Based on relevant literature from organizational theory and marketing channels, fourteen hypotheses were proposed for the relationships among EDI use and the three IR dimensions.^ Data were collected through self-administered questionnaires from key informants in 97 retail companies (19% response rate). The hypotheses were tested using multiple regression analysis. The analysis supports the following hypothesis: (a) EDI use is positively related to information intensity and formalization, (b) formalization is positively related to cooperation, (c) information intensity is positively related to cooperation, (d) conflict is negatively related to performance and satisfaction, (e) cooperation is positively related to performance, and (f) performance is positively related to satisfaction. The results support the general premise of the model that the relationship between EDI use and satisfaction among channel members has to be viewed within an interorganizational context.^ Research on EDI is still in a nascent stage. By identifying and testing relevant interorganizational variables, this study offers insights for practitioners managing boundary-spanning activities in organizations using or planning to use EDI. Further, the thesis provides avenues for future research aimed at understanding the consequences of this interorganizational information technology. ^

Restaurant Dining Strategies: Attracting Nutrition-Conscious Future Seniors

Senior Customers pose some unique challenges to operators due to some of the physiological changes associated with aging. In an effort to make food and beverage managers more cognizant of these changes, the authors examine these areas and also discuss strategies to attract and enhance the dining experience of the viable senior market segment.

Recruitment, Selection and Retention of Managers In the Hotel and Restaurant Industry

The recruitment, selection, and retention of competent, reliable, and motivated managers has been the cornerstone of any successful organization. This is generally a complex assignment due to the subjectivity involved in determining what traits are needed to make a good manager. In order to determine the status of the hospitality industry with regard to managerial concerns, leaders in the hotel and restaurant industry were surveyed on these issues.

Recruitment and Retention Insights for the Hotel Industry

Recruiting talented managerial employees for the hotel industry is a constant challenge. Identifying and training supervisors and junior level managers for senior positions seems to be one solution. The authors explore the career influences confronting these individuals and make recommendations for recruitment and retention.