Balancing short-term gains and long-term success in lodging: The role of customer satisfaction and price in hotel profitability model

• Ganna Demydyuk ^[1] ; Mats Carlbäck ^[2]
  1. [1] Leiden University

     Leiden University

     Países Bajos

     
  2. [2] Örebro University

     Örebro University

     Suecia

     
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 30, Nº. Extra 4, 2024 (Ejemplar dedicado a: IATE 2022 Conference), págs. 844-875
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • This study examines the relationship between revenue and profit drivers and long-term financial performance in the hotel industry based on 17-years data (2004–2020) of six US hotel chains. The analysis creates, tests, and analyzes a cross-level model that examines the complex endogenous relationships, underlying long-term financial performance of hotels. Specifically, we examine the interaction of room price (ADR) and customer satisfaction (ACSI) within a sales-volume-driver framework that impacts financial performance through profitability, measured at both the operating and accounting levels. This study seeks to advance our understanding of these relationships, their characteristics, and their implications for long-term financial performance in the hotel industry. The findings reveal that customer satisfaction is more important than price in achieving long-term financial success in the hotel industry, whereas room nights sold is significant positive driver of all performance levels.