The Economics of Quality in the Hotel Business

Ole Skalpe and KÃ¥re Sandvik

Tourism Economics, 2002, vol. 8, issue 4, 361-376

Abstract: There are few empirical studies on the economics of quality, and case studies and anecdotes dominate current research. This paper proposes that quality requires resources (input) and that quality has positive effects on economic performance (output). The study is based on quality ratings from 400,000 customers and detailed accounting information from more than 500 hotels. It demonstrates both that quality has positive effects on the hotels' economic performance and that superior quality requires economic resources.

Keywords: quality; customer satisfaction; economic performance; hotels (search for similar items in EconPapers)
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:8:y:2002:i:4:p:361-376

DOI: 10.5367/000000002101298188

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