Juan Luis Nicolau, Zheng Xiang and Dan Wang
This paper aims to investigate the links between daily review sentiment and the hotel performance measures of occupancy rate (OR), average daily rate (ADR) and revenue per…
Abstract
Purpose
This paper aims to investigate the links between daily review sentiment and the hotel performance measures of occupancy rate (OR), average daily rate (ADR) and revenue per available room (RevPAR).
Design/methodology/approach
The authors conducted review sentiment analyses in three moments (−1, −7 and −14 days) before arrival time using a data set of budget hotel performance and online reviews. The aim was to identify the effect of review sentiment in the budget hotel market on the three performance metrics.
Findings
Daily sentiment positively affects ADR and negatively affects OR and RevPAR, but only up to a certain threshold, after which the trend reverses. Prices increase with the level of sentiment, and high prices lead to low OR and RevPAR only when the sentiment scores are low. When they are high, they are associated with low rates, which lead to high OR and RevPAR.
Research limitations/implications
Daily review sentiment can be viewed as a valuable “barometer” indicating a hotel’s daily operational effectiveness. Daily sentiment can thus allow hotel managers to adjust their dynamic pricing strategies more accurately.
Originality/value
This study identifies daily sentiment as an alternative predictor of hotel performance. In addition to the roles of valence and volume in the decision-making process, the authors found that daily review sentiment can be an “in-the-moment” factor with a high impact, encouraging consumers to complete their transactions. This study suggests that aggregated measures such as the total number of reviews and overall ratings of the hotel should not be the sole consideration in reputation management.
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Juan Luis Nicolau, Abhinav Sharma, Hakseung Shin and Juhyun Kang
To provide a dynamic view on accommodation choice behaviors during the pandemic, this study aims to examine the impact of recent trends on prospective travelers’ preferences for…
Abstract
Purpose
To provide a dynamic view on accommodation choice behaviors during the pandemic, this study aims to examine the impact of recent trends on prospective travelers’ preferences for hotels and Airbnb.
Design/methodology/approach
The paper adopts a mixed methods approach that incorporates three independent studies (experimental analysis, online search pattern analysis and an econometric event study) to understand customer decision-making behaviors.
Findings
The findings indicate that travelers prefer Airbnb entire flats/apartments to hotels when the pandemic is trending upward. This result externally validates travelers’ preference toward Airbnb during periods of high risk. Interestingly, when the trends go downward, however, the same behavioral pattern was not identified.
Research limitations/implications
This study provides important empirical insights into how the evolution of health crises influence customer decision-making for hotels and Airbnb. Future research needs to consider the role of socio-demographic factors in accommodation selection behaviors and examine how travelers react to cleanliness levels between Airbnb and hotels.
Originality/value
As one of initial studies that empirically examine Airbnb customers’ decision-making behaviors in the context of the COVID-19 pandemic’s trends, this study provides a dynamic view on how the evolution of the pandemic influences accommodation choice behaviors.
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Xiaoxian Ji, Juan Luis Nicolau and Xianwei Liu
Repeat customers play an important role in the restaurant sector. Previous studies have confirmed the positive effect of managerial responses on customer relationship management…
Abstract
Purpose
Repeat customers play an important role in the restaurant sector. Previous studies have confirmed the positive effect of managerial responses on customer relationship management. However, the practice of managerial response strategies toward repeat customers in the restaurant sector remains unclear. This study aims to explore how social influence and the revisit intention of customers affect the responding behavior of restaurant managers.
Design/methodology/approach
This study collects information of 251,944 customer reviews and managerial responses from 1,272 restaurants on Yelp (a leading restaurant review website around the world) and builds four econometric models (with restaurant and month fixed effects) to test the hypotheses empirically.
Findings
The empirical results show that restaurant managers are less likely to respond to reviews posted by repeat customers (10% lower than that of new customers). This effect is moderated by customer social influence, which entails that repeat customers with great social influence are more likely to receive managerial responses. Moreover, reviews from repeat customers who have had a longer time since their last consumption are also more likely to receive managerial responses.
Practical implications
The results present implications for restaurant managers in business practice regarding managerial response. Managers should take advantage of platform designs and tools (i.e. customer relationship management programs to keep track of repeat customers) to locate repeat customers and avoid the potential negative effects caused by their selected response strategies.
Originality/value
To the best of the authors’ knowledge, this study is among the first attempts to examine empirically how restaurant managers respond to reviews generated by repeat customers in real business practice and reveals what drives such activities from the perspectives of social influence and revisit intention.
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Xianwei Liu, Juan Luis Nicolau, Rob Law and Chunhong Li
This study aims to provide a critical reflection of the application of image recognition techniques in visual information mining in hospitality and tourism.
Abstract
Purpose
This study aims to provide a critical reflection of the application of image recognition techniques in visual information mining in hospitality and tourism.
Design/methodology/approach
This study begins by reviewing the progress of image recognition and advantages of convolutional neural network-based image recognition models. Next, this study explains and exemplifies the mechanisms and functions of two relevant image recognition applications: object recognition and facial recognition. This study concludes by providing theoretical and practical implications and potential directions for future research.
Findings
After this study presents different potential applications and compares the use of image recognition with traditional manual methods, the main findings of this critical reflection revolve around the feasibility of the described techniques.
Practical implications
Knowledge on how to extract valuable visual information from large-scale user-generated photos to infer the online behavior of consumers and service providers and its influence on purchase decisions and firm performance is crucial to business practices in hospitality and tourism.
Originality/value
Visual information plays a crucial role in online travel agencies and peer-to-peer accommodation platforms from the side of sellers and buyers. However, extant studies relied heavily on traditional manual identification with small samples and subjective judgment. With the development of deep learning and computer vision techniques, current studies were able to extract various types of visual information from large-scale datasets with high accuracy and efficiency. To the best of the authors’ knowledge, this study is the first to offer an outlook of image recognition techniques for mining visual information in hospitality and tourism.
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Ricardo Sellers-Rubio and Juan-Luis Nicolau-Gonzalbez
The purpose of this paper is to test decoy effect in the framework of sales promotion, by conducting several experiments to figure out how this decoy effect is influenced by the…
Abstract
Purpose
The purpose of this paper is to test decoy effect in the framework of sales promotion, by conducting several experiments to figure out how this decoy effect is influenced by the presence or absence of a store brand.
Design/methodology/approach
Several experiments have been conducted to test the validity of the decoy effect and rule out some explanations for the changes in demand that take place. The experiments consider three brands (two national brands and one store brand). All the brand names and prices employed in the experiment are real.
Findings
The results indicate that, as expected, the inclusion of a decoy in the choice set significantly increases the consumer’s relative preference for the promoted product; however, more importantly, the results also show that store brand consumers are more influenced by a decoy than national brand consumers.
Originality/value
This paper presents the first evidence of the decoy effect in the presence of store brands.
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Francisco José Mas‐Ruiz, Juan Luis Nicolau‐Gonzálbez and Felipe Ruiz‐Moreno
The aim of this study is to examine the determining factors of a firm’s performance, as a direct consequence of its diversification strategy in its expansion into foreign markets…
Abstract
The aim of this study is to examine the determining factors of a firm’s performance, as a direct consequence of its diversification strategy in its expansion into foreign markets, considering certain factors like the market, the product and the company itself. As a novelty, the methodology employed uses the event‐study to estimate the excess of returns generated by its shares on the Stock Market, based on a sample of 35 expansion announcements into external markets corresponding to 11 diversifying companies. A regression analysis is also carried out to examine the impact of these factors, market, product and company, on the excesses in returns observed. The empirical application, carried‐out in Spain, has allowed us to detect that, on average, the impact of the news about a company’s expansion on the returns on its shares is positive; its determining factors being the speciality of the product offered and the level of development in the target country.
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Sofia Oliveira and Helena Albuquerque
The paper aims to present a literary itinerary inspired in Julio Dinis’ novel An English Family (Uma Família Inglesa) through a comparative analysis of the places identified in…
Abstract
Purpose
The paper aims to present a literary itinerary inspired in Julio Dinis’ novel An English Family (Uma Família Inglesa) through a comparative analysis of the places identified in the novel and the touristic attraction proposed by Visit Porto website. This novel is representative of the cultural identity and society of Porto city in the 19th century. Developing an itinerary based on this novel can facilitate the reading and understanding of the historical and cultural development of Porto.
Design/methodology/approach
This case study is based on the reading of the Julio Dinis’ novel An English Family (Uma Família Inglesa), whose storyline takes place in Porto city, Portugal in the 19th century. It used QGIS v. 3.12 software, a geographical information system to identify the places, to produce the maps and to create the itinerary.
Findings
The comparison between the places identified in the novel and the tourist attraction in Visit Porto website revealed that only 6 points in the novel are referenced on Visit Porto website. These points correspond to the ones in the historical city centre of Porto. However, the creation of an itinerary that brings together all the points mentioned by Julio Dinis in his novel, will allow the development of a new touristic itinerary, alternative to existing itineraries in the city and that can be seen as a distinguish offer that allows a different view of the urban space of Porto.
Research limitations/implications
There are some limitations to this study that can be highlighted. First, it was difficult to find the correct location of some points identified in the novel, due to difficulty of finding historical maps with quality of the data. At the same time, as tourist information is dispersed by several sources, and most of those data is not georeferenced, it was time consuming the integration of all the information in the same geodatabase. The choice of the shortest path can also be considered as a limitation, rather than the route followed by the author in the novel, but geographic information systems operates on spatial and temporal scale, which can present a limitation in tourism analysis. In the case of this project, we have chosen the shortest path, assuming that tourist would prefer that.
Originality/value
This research allowed to address two areas of knowledge that are emerging in the study of urban centres as tourist areas: the use of GIS and literary tourism. Despite the fact that there are already articles on this subject, the originality focuses on the approach made around one of the greatest writers of Portugal in the 19th century, allowing to present a tourist itinerary about one of his literary works, and the comparison made between the places identified in the novel and the tourist points identified on the Visit Porto website.