Hotel management contract: impact on performance in the Korean hotel sector

Soo Y. Kim

The Service Industries Journal, 2008, vol. 28, issue 5, 701-718

Abstract: This study investigates the influence of hotel management contract on the performance of super-deluxe hotels in Korea and identifies how the 1996--1997 tourism recessions affected the relationship between management contract and the performance of the hotels. The Mann--Whitney U test, stepwise logistic regression, and multivariate analysis of variance statistical analyses indicate that management contract is positively related to the performance of the hotels, and the 1996--1997 tourism recessions caused the management contract--performance link to vary. From the industry application perspective, this study provides hotel owners with empirical information relating to: (1) a means to assess the performance of hotels under management contract and (2) a decision rule to apply an appropriately matched operating arrangement to an environmental state for maximum performance. The results obtained present an invaluable analysis tool for all owners involved in charting a hotel's future.

Date: 2008
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Citations: View citations in EconPapers (3)

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DOI: 10.1080/02642060801988332

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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