A Critical Review of the Implied Cost of Equity: A New Way to Estimate the Expected Return

For the last three decades, the Capital Asset Pricing Model (CAPM) has been a dominant model to calculate expected return. In early 1990% Fama and French (1992) developed the Fama and French Three Factor model by adding two additional factors to the CAPM. However even with these present models, it has been found that estimates of the expected return are not accurate (Elton, 1999; Fama &French, 1997). Botosan (1997) introduced a new approach to estimate the expected return. This approach employs an equity valuation model to calculate the internal rate of return (IRR) which is often called, 'implied cost of equity capital" as a proxy of the expected return. This approach has been gaining in popularity among researchers. A critical review of the literature will help inform hospitality researchers regarding the issue and encourage them to implement the new approach into their own studies.

Adapting the Customer Satisfaction Index to the Lodging Industry: Foreign Customers' Evaluations

As a standard form of measuring customer satisfaction, the Customer Satisfaction Index (CSI) has been utilized in many countries. By using the Korean Customer Satisfaction Index (KCSI) methodology, this study attempted to investigate foreign customers’ evaluations of luxury hotels in Seoul, South Korea. In doing so, some efforts were made to overcome the methodological problems associated with the KCSI for the lodging industry. Data for this study were collected through a mall intercept survey using a self-administered questionnaire. Precisely 783 responses, collected solely from foreign guests who had stayed at a luxury hotel in Seoul, were included in the study.

Measuring Hotel Service Quality: Tools for Gaining the Competitive Edge

As the hotel industry grows more competitive, quality guest service becomes an increasingly important part of managers' responsibility measuring the quality of service delivery is facilitated when managers know what types of assessment methods are available to them. The authors present and discuss the following available measurement techniques and describe the situations where they best meet the needs of hotel managers: management observation, employee feedback programs, comment cards, mailed surveys, personal and telephone interviews, focus groups, and mystery shopping.

Solid Waste Disposal: Independent Food Service Practices

Solid waste disposal is a major concern today. This study seeks to identify the current practices and attitudes of managers of independent food services toward solid waste management and the characteristics of food services which were most likely to be involved with a solid waste management program

The Effects of Job Satisfaction, Organizational Commitment, Organizational Citizenship Behavior on Turnover Intentions

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.

To CHAE or Not to CHAE

Many certifications are available in many professions. They represent a level of achievement and provide a dimension of professionalism to a resume. This article reveals the results of research covering the degree the extent of certification of members of the Hospitality Financial & Technology Professionals. Further, obstacles and assists in taking the examination to become a Certified Hospitality Accountant Executive (CHAE) were determined. Thirty-seven percent of the respondents have earned their CHAE. The biggest obstacle to taking the exam according to 60% of the respondents who have not earned the CHAE was lack of time to prepare. The biggest assist according to this same group would be an on-line CHAE preparation course.

In My Opinion: Michael E. Hurst: July 8, 1931 - March 22, 2001

My reflections of Michael E. Hurst are a much more modest enterprise than a memoir or biography. My portrait of him will only portray the images I observed and remember: As he was an adult when I met him, it is far from a complete picture of him. I was his academic dean, fellow professor, and friend. While fame has eluded most people I know. Hurst was the exception: everyone in the food service industry knew him.

Kosher Airline Food: A Logistical Challenge

Providing meals to passengers on aircrafts requires a complex logistical system if it is to be done sucessfully. Variations to that system are required if special meals, such as kosher ones, are to be provided since it entails unique system challenges. The authors discuss service requirements, the challenges they pose to the inflight meal service logistical system, and some of the ways in which these challenges are met.

Menu Engineering: A Model Including Labor

Menu engineering is a methodology to classify menu items by their contribution margin and popularity. The process discounts the importance of food cost percentage, recognizing that operators deposit cash, not percentages. The authors raise the issue that strict application of the principles of menu engineering may result in an erroneous evaluation of a menu item, and also may be of little use without considering the variable portion of labor. They describe an enhancement to the process by considering labor.

Employee Job Satisfaction in Major Cruise Lines

A survey of 244 crew members with six major cruise Iines indicated the most satisfaction with organization and supervision, satisfaction with working environment and ship life, and least satisfaction with rewards. The study suggests that the analysis of job satisfaction level may be used to develop organizational strategies to improve shipboard employee job satisfaction.

A Look at Restaurant Commissaries

Restaurant commissaries range the full spectrum from simple storage of food and supplies to multi-million-dollar processing plants. The author discusses the cost effectiveness of commissary units, including their operating costs, quality control, and scope.

The Five Foundations of Leadership in Japan's Lodging Industry

This article discusses the results of pioneer research done by Michigan State University's School of Hotel, Restaurant and Institutional Management researchers, in cooperation with the Japanese Management Association, on the foundations of Japanese lodging industry leadership. While the results presented here simply represent the opinions of CEOs and presidents in Japan's lodging industry, the research offers an insight into leadership foundations and the results provide a guide for developing leadership skills in those who aspire to be future leaders in Japan’s lodging industry

Recreational Food Service is Big Business

In the analysis - Recreational Food Service Is Big Business - by Gary Horvath, President, Recreational Foodservice Division, Service America Corporation and Mickey Warner, Associate Professor School of Hospitality Management at Florida International University, Horvath and Warner initially state: “Recreational food service is very different from routine food service management. The authors review the market and the management planning and challenges that create that difference.” Recreational food is loosely defined by the authors as food for special events. These can be one-time events, repeated events that are not on a fixed schedule [i.e. concerts], weekly events such as football-baseball-or basketball games, or other similar venues. Concessions are a large part of these fan based settings. “An anticipated 101,000 fans at a per capita spending of $5-6 [were expected]. A typical concessions menu of hot dogs, popcorn, soda, beer, snacks, novelty foods, candy, and tobacco products comprises this market segment,” say Horvath and Warner in reference to the Super-Bowl XXI football championship game, held in Rose Bowl stadium in Pasadena, California, on January 25, 1987. Some of the article is based upon that event. These food service efforts focus on the individual fan, but do extend to the corporate-organizational level as well. Your authors will have you know that catering is definitely a part of this equation. The monies spent and earned are phenomenal. “Special events of this type attract numerous corporate catering opportunities for companies entertaining VIP guest lists,” the authors inform. “Hospitality tents usually consist of a pregame cocktail party and buffet and a post-game celebration with musical entertainment held in lavishly decorated tents erected at the site. In this case a total of 5,000 covers, at a price of $200 each, for 12-15 separate parties were anticipated.” Horvath and Warner also want you to know that novelties and souvenirs make up an essential part of this, the recreational food service market. “Novelties and souvenirs are a primary market and source of revenue for every stadium food service operator,” say Horvath and Warner. The term, “per capita spending is the measurement used by the industry to evaluate sales potential per attendee at an event,” say the authors. Of course, with the solid revenue figures involved as well as the number of people anticipated for such events, planning is crucial, say Horvath and Warner. Training of staff, purchasing and supply, money and banking, facility access, and equipment, are a few of the elements to be negotiated. Through both graphs and text, Horvath and Warner do provide a fairly detailed outline of what a six-step event plan consists of.

A Case Study of Health Tourism in the Jeju Province, South Korea

The United States Census Bureau (2006) reported that in 2005 more than 46 million Americans lacked health insurance, and that by 2019 national spending for health care would exceed $4.5 trillion (Centers for Medicare & Medicaid Services, 2010). Because those numbers are expected to increase, health tourists are seeking better opportunities for low-cost, high-quality treatment in other countries, plus the added benefit of experiencing foreign cultures. Health tourism is a rapidly growing market in both advanced and developing countries. The purpose of this study was to develop an applicable model of health tourism, the Jeju-Style Health Tourism Model, for Jeju Special Self-Governing Province, in the Republic of Korea (South Korea) and to provide other cities and countries with its implications. This study employed a focus group, indepth interviews, and content analysis to discover important factors in developing the model. The results suggested that four major sources must be executed together to maximize the benefits of health tourism development. On a foundation of natural resources, knowledge-based resources were most important (54.5%), followed by artificial resources (25.7%), and expenses-based resources (19.8%).

Personal Care Amenities: Are They Important Attributes in the Selection of Hotels?

Personal care amenities (PCA) are a big business in the lodging industry today. For several years hotel industry vendors and marketing consultants have claimed that PCA are very important to hotel guests and are a "must" for every hotel operation. The purpose of this study was to make one attempt to validate or discredit these claims based on actual guest feedback.