This study aims to provide a comprehensive treatment of the various issues surrounding the concept of the cost competitiveness, competitiveness and sustainability of the…
Abstract
Purpose
This study aims to provide a comprehensive treatment of the various issues surrounding the concept of the cost competitiveness, competitiveness and sustainability of the hospitality industry. We also investigate how innovations in the Indian hospitality industry can optimize costs without compromising the quality of the product or the services offered.
Design/methodology/approach
The methodology used is mainly survey-based with the use of both structured and unstructured questionnaires. In addition, some interviews were conducted with policy-makers and academics to explore from their perspectives what might be the innovations and sustainability issues in the next decade.
Findings
The paper helps to identify the essential aspects of cost competitiveness, competitiveness and sustainability in the hospitality industry and to better understand if cost optimization can be accomplished simply by realigning process or cost. These issues have become very important in India in the present context of globalization.
Practical implications
With growing competition on a global level, the hospitality industry needs to proactively manage its internal operations and focus on reducing costs and raising service quality. In this context, the paper helps to reveal sustainable cost effective practices that are geared to today’s competitive environment.
Originality/value
The inspiration to write this paper arises from the recent global economic slowdown and the fact that the hospitality industry is confronted with growing competition on a global level. This study highlights how value can be created for customers by applying suitable strategies.
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The purpose of this paper is to discuss the outlook for risk management and enterprise risk management (ERM) within the hospitality sector including how ERM is being balanced with…
Abstract
Purpose
The purpose of this paper is to discuss the outlook for risk management and enterprise risk management (ERM) within the hospitality sector including how ERM is being balanced with the need to innovate, and what boards of directors are doing to become more engaged in risk oversight. The implementation of ERM is about taking a strategic view of risk and linking it to business goals and value creation.
Design/methodology/approach
An interviewer-administered survey was used to collect data from 33 senior risk professionals and other industry experts who had a clear understanding of both risk management and ERM. A structured and semi-structured questionnaire consisting of three sections was personally administered to 33 respondents in 2018 to collect information from risk professionals and other industry experts.
Findings
It is important to create a culture of risk awareness and to incorporate risk planning into business decisions. The complexity of modern business necessitates that managers in the hospitality sector have greater skill levels than ever before. This research should help hospitality managers to better understand the core risks and link them to strategy. ERM creates an environment where the organization as a whole can support the value creation process with a sharper focus on risk management.
Practical implications
The growing role of technology along with human connections is shaping the hospitality sector and redefining the travel ecosystem. Future travel experiences are likely to be influenced by a blend of technology and human experiences. Many Indian companies are applying the traditional risk management model in their businesses, while ERM is their future goal. The evolution from a traditional risk management model to ERM is challenging, and so it is important to have an appropriate framework in place for its implementation.
Originality/value
Hospitality managers need to know how to proactively manage risk management and ERM as the sector is increasingly vulnerable to internal risks. ERM creates a direct linkage between risks and opportunities required for decision-making in a dynamic environment. With growing competition on a global level, the hospitality industry should aim to manage risks strategically to increase the likelihood that organizational objectives can be achieved.
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The purpose of this paper is to provide some empirical evidence of the current trends regarding cost structures in the hospitality industry and to help reveal the present…
Abstract
Purpose
The purpose of this paper is to provide some empirical evidence of the current trends regarding cost structures in the hospitality industry and to help reveal the present practices on cost structures and management adopted by the Indian hospitality sector.
Design/methodology/approach
The methodology employed was mainly survey based with the use of structured questions. Online surveys and interviews were carried out during 2012 with management accountants, chief accountants and finance directors of hotel companies.
Findings
The results of the study suggest that hotels are increasingly challenged to find ways to reduce costs without sacrificing quality. Most of the respondents believe that good management and cost accounting practices are associated with the financial success of hotels.
Practical implications
A study on cost structures will help to identify and focus on the innovative practices that the sector needs to adopt in order to manage costs in the coming years. The findings from this study suggest companies need to modernize their cost accounting systems by implementing activity based costing. Most of the managers surveyed were of the opinion that the traditional costing system does not accurately reflect customer profitability analysis.
Originality/value
The inspiration for this paper arises from the fact that there is little empirical work on cost structures and design in the hospitality industry. Intense competition is now affecting the industry and efforts need to be made to create a sustainable model for hotels that can be adapted to an evolving market scenario.
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Harsh Vardhan, Pankaj Sinha and Madhu Vij
The purpose of this paper is to demonstrate importance of usage of sector indices which provides insight for sector specific investment strategies and direction for suitable…
Abstract
Purpose
The purpose of this paper is to demonstrate importance of usage of sector indices which provides insight for sector specific investment strategies and direction for suitable policy formulation for the Indian industry. It investigates long run, short run and causality relationships between eight identified sector indices and Sensex for the post subprime period.
Design/methodology/approach
The study uses Vector Error Correction Model (VECM) for econometric analysis. It employs Generalized Impulse Response and Variance Decomposition analysis for developed multivariate framework in order to provide information about precise interplay of the sector indices.
Findings
Long-term relationships between sector indices were determined by the usage of VECM indicating minimal benefits from diversifying investments to different sectors. Limited lead – lag short run relationships between sector indices were observed. Banking index played a predominant and integrating role in moving other indices. During this period of recovery; most sectors were protected and provided marginally better returns due to robust Banking policy. Realty and Metal were other significant drivers influencing remaining sectors contemporaneously. The study for the post subprime crisis period helps to understand the importance and behavior of interrelated sector indices and Sensex in the dynamic economic environment.
Practical implications
The study clearly provides direction for sector specific investment strategies and policy formulation.
Originality/value
The study highlights utility and importance of usage of sector indices. No study using sector indices for the Indian economy have been done earlier employing VAR for the post subprime crisis period.
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Gunjan M. Sanjeev and Richard Teare
The purpose of this paper is to profile the experiences of the theme editor and the writing team of Worldwide Hospitality and Tourism Themes (WHATT) theme issue “What should…
Abstract
Purpose
The purpose of this paper is to profile the experiences of the theme editor and the writing team of Worldwide Hospitality and Tourism Themes (WHATT) theme issue “What should Indian tourism and hospitality managers focus on to stay competitive in the coming decade?”
Design/methodology/approach
This paper uses structured questions to enable the theme editor to reflect on the rationale for the theme issue question, the starting point, the selection of the writing team and material and the editorial process.
Findings
This paper identifies key issues shaping the Indian tourism and hospitality industry and some of the implications for managers. It also identifies ways of improving competitiveness and some of the ways in which the Indian Government (at national and state levels) is investing in and facilitating community-focussed tourism development.
Practical implications
The theme issue outcomes provide lines of enquiry for others to explore and reinforce the value of WHATT’s approach to collaborative working and writing.
Originality/value
This paper draws on discussion and applied research with industry to identify and assess the likely impact of innovation, information technology, social media and related developments on tourism and hospitality industry development in India. The theme issue collection of this paper provides a rich picture of the occurring changes and prospects for the future.
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Gunjan M. Sanjeev and Richard Teare
The paper aims to profile the theme issue of Worldwide Hospitality and Tourism Themes titled “How is the need for innovation being addressed by the Indian hospitality industry?”…
Abstract
Purpose
The paper aims to profile the theme issue of Worldwide Hospitality and Tourism Themes titled “How is the need for innovation being addressed by the Indian hospitality industry?” with reference to the experiences of the theme editor, contributors from the industry and academia and the theme issue outcomes.
Design/methodology/approach
The paper uses structured questions to enable the theme editor to reflect on the rationale for their theme issue question, the starting-point, the selection of the writing team and material and the editorial process.
Findings
It highlights recent innovations that have taken place in the Indian hospitality industry especially in the areas of customer service, cost competitiveness, culinary management, revenue management and technology.
Practical implications
As hotel sector investment in India intensifies, this theme issue will be of interest to hoteliers, policy makers, analysts and others interested in the role that innovation can play in helping to facilitate differentiation between competing hotel products and services.
Originality/value
There is limited literature available on industry innovations in the Indian context. All the papers in this theme issue were written after several cycles of interaction between academics and practitioners and so they incorporate real–time, relevant and contemporary data.
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Elisabete Simões Vieira, Maria Elisabete Neves and António Gomes Dias
The purpose of this paper is to analyse the determinants of Portuguese firms’ performance.
Abstract
Purpose
The purpose of this paper is to analyse the determinants of Portuguese firms’ performance.
Design/methodology/approach
To achieve this aim, the authors used data from 37 non-financial firms in the period between 2010 and 2015. Three dependent variables were tested and the estimation of the model using the Generalised Method of Moments shows that internal, external and institutional factors are important to explain the performance of firms listed in Euronext Lisbon.
Findings
The determinants of firm performance vary depending on the variable used to measure the performance. Specifically, the results show that when the authors use a market variable of performance, the firm-specific variables are not so important to explain performance. The macroeconomic factors, including the investor’s sentiment and insider ownership, more effectively explain the firm’s performance. The evidence suggests that the determinants of firm performance change according to the way in which different stakeholders appreciate firm performance.
Originality/value
The main contribution of such approach is to show that internal and external factors influence performance measures in distinct ways, thus helping managers who are expected to make decisions according to the investors’ expectations. It provides initial guidelines for policy makers to understand how to improve the performance of their firms using firm-specific factors. Additionally, this work also demonstrates that the firm’s characteristics, macroeconomics and governance factors could affect the Portuguese firms’ performance, conveying a valuable contribution for investors.