A study of the relationship between U.S. hotel companies and travel agency companies: Determinants of the success of the relationship

The primary objectives of this study were to describe the relationship that U.S. hotel companies have with travel agency companies and to identify the determinants of a successful relationship.^ The unit of analysis was hotel companies operating in U.S. One hundred and three hotel companies contributed information for this research. The data were collected through a questionnaire developed from previous empirical studies and from interviews with hospitality management professors and hotel sales and marketing directors.^ Simple and multiple regression analyses indicated that in order to have successful relationships with travel agency companies, hotel companies should (a) show more commitment or dedication to working with the travel agents, (b) have more trust in the travel agents themselves, and (c) be less dependent on any one travel agent for their business.^ Additionally, the results suggest that hotel companies who coordinate activities with travel agents companies and who communicate with them in a timely, accurate, adequate, complete and credible manner have more successful interorganizational relationships than those who do not.^ Furthermore, hotel companies who share proprietary sales and any other information with travel agents reported better relationships. (Abstract shortened by UMI.) ^

Customer relationship management: A content analysis of issues and best practices

This dissertation is a study of customer relationship management theory and practice. Customer Relationship Management (CRM) is a business strategy whereby companies build strong relationships with existing and prospective customers with the goal of increasing organizational profitability. It is also a learning process involving managing change in processes, people, and technology. CRM implementation and its ramifications are also not completely understood as evidenced by the high number of failures in CRM implementation in organizations and the resulting disappointments. ^ The goal of this dissertation is to study emerging issues and trends in CRM, including the effect of computer software and the accompanying new management processes on organizations, and the dynamics of the alignment of marketing, sales and services, and all other functions responsible for delivering customers a satisfying experience. ^ In order to understand CRM better a content analysis of more than a hundred articles and documents from academic and industry sources was undertaken using a new methodological twist to the traditional method. An Internet domain name (http://crm.fiu.edu) was created for the purpose of this research by uploading an initial one hundred plus abstracts of articles and documents onto it to form a knowledge database. Once the database was formed a search engine was developed to enable the search of abstracts using relevant CRM keywords to reveal emergent dominant CRM topics. The ultimate aim of this website is to serve as an information hub for CRM research, as well as a search engine where interested parties can enter CRM-relevant keywords or phrases to access abstracts, as well as submit abstracts to enrich the knowledge hub. ^ Research questions were investigated and answered by content analyzing the interpretation and discussion of dominant CRM topics and then amalgamating the findings. This was supported by comparisons within and across individual, paired, and sets-of-three occurrences of CRM keywords in the article abstracts. ^ Results show that there is a lack of holistic thinking and discussion of CRM in both academics and industry which is required to understand how the people, process, and technology in CRM impact each other to affect successful implementation. Industry has to get their heads around CRM and holistically understand how these important dimensions affect each other. Only then will organizational learning occur, and overtime result in superior processes leading to strong profitable customer relationships and a hard to imitate competitive advantage. ^

Customer Satisfaction, Quality in Cruise Industry

Record numbers of passengers are sailing on board cruise ships, with the industry claiming high levels of customer satisfaction. Conversely, little is known about the specific factors which make up customer satisfaction with the cruise experience. The authors examine customer satisfaction data from nearly 15,000 guests of a large U.S. cruise line to determine which aspects of the cruise experience have the greatest impact on overall satisfaction and perceptions of quality.

Accuracy of Hotel Feasibility Study Projections

Hotel feasibility studies are critical in the determination of hotel construction, sales and refinancing. Discrepancies have been reported between forecasted results and actual operating results. The author, with funding provided by the Hilton corporation, examines whether such studies under- state or overstate occupancy, average rate, and net income.

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!

Tip Allocation: A Compliance Study tor Restaurants

Survey research of the commercial food service industry with regard to tips and tip allocation revealed that 50 percent of restaurateurs require that employees report a minimum amount or percentage of sales and over 50 percent which allocate tips report them as employee income. The authors discuss these results and point out other problems.

Reaching an Underserved Wine Customer: Connecting with the African American Wine Consumer

Marketing strategies addressing underserved African American wine customers’ needs that also positively impact producers’ and retailers’ clientele was the impetus for this exploratory, qualitative paper. African Americans demonstrate a thirst to elevate their education about and be more involved in the wine industry as evidenced by the proliferation of African American wine-tasting groups designed to help educate and expose their membership to a variety of wines. Moreover, compared to the average adult, African-American wine drinkers are 241% more likely to have spent $20 or more on a bottle of store bought wine (Arbitron, 2005). Despite African Americans’ representation as one of the fastest growing ethnic minority segments in the U.S., wine industry strategies don't appear to connect with this market segment. Like Alice in Wonderland, we characterize this phenomenon by suggesting this market segment is ‘peering through the looking glass’. Three focus groups were conducted to specify possible targeted media strategies as well as to identify attitudes and opinions that influence this segment's wine purchasing and consumption behaviors. Industry strategies were suggested that would appear to benefit producers, retailers, and this customer segment. The results of the research will be used to inform a quantitative instrument in order to generalize findings beyond the context of the exploratory setting.

Using the Involvement Construct to Understand the Motivations of Customers of Casual Dining Restaurants in the USA

The purpose of this study was to investigate the motivations that push consumers to dine out and restaurant attributes that pull diners to a specific restaurant. Surveys were administered to a convenience sample of 559 respondents at a large university in the Southwest of the USA. Crosstabs, ANOVA, Correlations, Factor Analysis and Multiple Regression were employed to explore differences and relationships between variables. Findings identified a profile of diners at casual restaurants. Using the involvement construct, the push-pull motivational framework, and the hedonic and utilitarian motivational framework, results of this study indicate two primary reasons behind the decision to dine out at casual restaurants and six principal attributes that draw customers into these types of restaurants. In addition, diners were categorized into high/medium/low involvement categories and the linkages between involvement levels and motivations were explored. Both hedonic and utilitarian motivations were identified. Furthermore, motivational factors and restaurant attributes were found to predict diner loyalty. This paper provides the restaurant industry with insight and understanding as to what attracts diners into an establishment and what influences decisions behind dining out.

Sales tax enforcement: An empirical analysis of compliance enforcement methodologies and pathologies

Most research on tax evasion has focused on the income tax. Sales tax evasion has been largely ignored and dismissed as immaterial. This paper explored the differences between income tax and sales tax evasion and demonstrated that sales tax enforcement is deserving of and requires the use of different tools to achieve compliance. Specifically, the major enforcement problem with sales tax is not evasion: it is theft perpetrated by companies that act as collection agents for the state. Companies engage in a principal-agent relationship with the state and many retain funds collected as an agent of the state for private use. As such, the act of sales tax theft bears more resemblance to embezzlement than to income tax evasion. It has long been assumed that the sales tax is nearly evasion free, and state revenue departments report voluntary compliance in a manner that perpetuates this myth. Current sales tax compliance enforcement methodologies are similar in form to income tax compliance enforcement methodologies and are based largely on trust. The primary focus is on delinquent filers with a very small percentage of businesses subject to audit. As a result, there is a very large group of noncompliant businesses who file on time and fly below the radar while stealing millions of taxpayer dollars. ^ The author utilized a variety of statistical methods with actual field data derived from operations of the Southern Region Criminal Investigations Unit of the Florida Department of Revenue to evaluate current and proposed sales tax compliance enforcement methodologies in a quasi-experimental, time series research design and to set forth a typology of sales tax evaders. This study showed that current estimates of voluntary compliance in sales tax systems are seriously and significantly overstated and that current enforcement methodologies are inadequate to identify the majority of violators and enforce compliance. Sales tax evasion is modeled using the theory of planned behavior and Cressey’s fraud triangle and it is demonstrated that proactive enforcement activities, characterized by substantial contact with non-delinquent taxpayers, results in superior ability to identify noncompliance and provides a structure through which noncompliant businesses can be rehabilitated.^

Effect of Smoke-Free Ordinances on Restaurant and Bar Sales

Peer-reviewed studies that have examined the effect of the enactment of smoke-free ordinances on restaurant and bar sales have uniformly found that the enactment of these ordinances does not decrease restaurant or bar sales, with most studies observing no effect on restaurant revenues.