The Effects of Hotel Theme Strategy: An Examination on the Perceptions of Hotel Guests on Theme Elements
QU XIAO
HANQIN QIU ZHANG HUI HUANG
Theme hotels are a relatively new hotel type resulting from the continuous development of market segmentation trends in the lodging industry. The unique experience created by a theme hotel is the hotel’s key competitive advantage and differentiator. This is the first quantitative study of theme elements to include empirical data. Using importance– performance analysis, it examines the perceived importance and performance of 10 theme-related attributes among hotel guests. The results indicate that a theme hotel’s basic facilities and services are perceived as more important than its theme elements, and hotel guests are generally more satisfied with basic facilities and services than with theme elements. The findings suggest that theme culture should be further developed and enhanced in theme hotels.
KEYWORDS. Theme hotel, hotel attributes, hotel performance, guest satisfac- tion, China’s hotel industry
Qu Xiao is an Assistant Professor in the School of Hotel and Tourism Management at The Hong Kong Polytechnic University, Kowloon, Hong Kong, China (E-mail: qu.xiao@polyu.edu.hk). Hanqin Qiu Zhang is an Associate Professor in the School of Hotel and Tourism Management at
The Hong Kong Polytechnic University, Kowloon, Hong Kong, China (E-mail: hanqin.zhang. qiu@polyu.edu.hk).
Hui Huang is the Director of Operations at the Seaview O-City Hotel, Shenzhen China (E-mail: nancyhuangon@hotmail.com).
Introduction
Continuous market segmentation has become an important trend in the hotel industry worldwide, because it allows hotels to differentiate themselves from their competitors and to better serve the diverse needs of guests. Because guests can be classified in various ways, considerable efforts have been made in the hotel industry to segment lodging facilities and thereby target specific types of guests. As such, a number of nonconventional hotel types have become widely recognized in the past two decades, such as lifestyle (e.g., W and Aloft hotels), super luxury (e.g., Bulgari and Amani hotels), and green hotels. The theme hotel has also emerged as one of the most attractive new lodging segments in recent years. Unlike many other hotel types, such as extended-stay, limited-service, and suite hotels, which have distinct requirements related to facilities, amenities, and/or services, theme hotels focus on creating unique theme experiences through theme-oriented designs, products, and services (Bower, 2012; Milne, 2009; Wei, 2011; X. Xiao, 2010). Because each theme hotel is uniquely designed, it offers attractive alternatives to business and leisure guests who do not want standardized or indifferentiable hotel products. The crea- tion of a theme is determined fundamentally by a concept design and not by luxurious facilities or a high level of service (X. Xiao, 2010; Z. Xiao, 2012). Therefore, all hotels, ranging from economy to luxury properties and from business to resort hotels, could establish a competitive advantage by successfully adopting a theme concept.
Although they have a more than 50-year history in the United States, theme hotels were not introduced to China until the last decade (Fan, 2008; Feng, 2009). Nevertheless, they are part of the world’s fastest-growing hotel industry, and the number of theme hotels in China has been recorded at more than 400 properties, with more in development across the country (X. Xiao, 2010). Because the competition from international and domestic chains has been constantly increasing, the develop- ment and positioning of theme hotels have become important strategies for many independent properties to stay competitive with unique theme-oriented features (Z. Xiao, 2012).
Though the worldwide popularity of theme hotels has become increasingly evident, surprisingly little research has been conducted on this segment in China. The literature on theme hotels has taken a primarily descriptive tone, and most researchers have offered general discussions in addition to a few case studies. As such, empirical evidence in most theme hotel-related areas is rare. Although the general attributes and factors affecting regular guests’ hotel selections and experi- ences are popular topics in the literature, the perceptions of theme hotel guests remain an untouched topic, and the importance and performance of specific theme elements have not yet been investigated with empirical data. To supplement the established knowledge on theme hotels, this exploratory study investigated how theme hotel guests perceive the importance and performance of different theme elements. In particular, the primary purposes of this study were to (1) identify the key theme elements perceived to be the most important to guests, (2) explore how satisfied guests are with a theme hotel’s performance of these elements, and (3) compare the perceived importance and performance of these elements with those of other well-recognized, general (i.e., non-theme) attributes to investigate how much theme elements really matter in shaping guests’ experiences in theme hotels.
Literature Review
Definition and Classification of Theme Hotel
Among the different views on the origins of theme hotels, the most cited story dates back to 1958, when the legendary Madonna Inn opened its first 12 rooms, with different themes ranging from a caveman room complete with a waterfall to a Matterhorn room with a rock shower, in San Luis Obispo, California. The Madonna Inn has gradually expanded to 110 rooms and is recognized as the earliest and most representative theme hotel in the United States (Fan, 2008). Today, theme hotels can be widely found in most world-class destinations, particularly in vacation-oriented resorts. The most prominent theme h
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