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HotelTonight usage and hotel profitability

HotelTonight usage and hotel profitability PurposeThe purpose of this study is to empirically evaluate the influence of a hotel’s listing on the last-minute hotel booking app, HotelTonight, and average daily rate (ADR) on the hotel’s net operating income (NOI). The study examines the mediating effect of hotel occupancy rate on the relationships between ADR and hotel app usage in terms of NOI.Design/methodology/approachThe data for the study was graciously provided by Smith Travel Research, Inc. for 80 hotels located in the top Florida destinations listed on the HotelTonight app. Hierarchical multiple regression with a mediation effect was used in the study to test the mediating effect of occupancy between hotel app usage and ADR with NOI.FindingsThe research results show a positive association between a hotel’s HotelTonight listing and ADR in terms of its NOI. Occupancy is found to have a full mediation effect between a hotel’s usage of the mobile app and NOI.Originality/valueMobile apps that specialize in last-minute hotel bookings have proliferated in recent years by providing hotels a mobile platform to increase hotel occupancy. However, there is a dearth of studies examining the effect these apps have on a hotel’s bottom line profitability or NOI. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Hospitality and Tourism Technology Emerald Publishing

HotelTonight usage and hotel profitability

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1757-9880
DOI
10.1108/JHTT-12-2015-0050
Publisher site
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Abstract

PurposeThe purpose of this study is to empirically evaluate the influence of a hotel’s listing on the last-minute hotel booking app, HotelTonight, and average daily rate (ADR) on the hotel’s net operating income (NOI). The study examines the mediating effect of hotel occupancy rate on the relationships between ADR and hotel app usage in terms of NOI.Design/methodology/approachThe data for the study was graciously provided by Smith Travel Research, Inc. for 80 hotels located in the top Florida destinations listed on the HotelTonight app. Hierarchical multiple regression with a mediation effect was used in the study to test the mediating effect of occupancy between hotel app usage and ADR with NOI.FindingsThe research results show a positive association between a hotel’s HotelTonight listing and ADR in terms of its NOI. Occupancy is found to have a full mediation effect between a hotel’s usage of the mobile app and NOI.Originality/valueMobile apps that specialize in last-minute hotel bookings have proliferated in recent years by providing hotels a mobile platform to increase hotel occupancy. However, there is a dearth of studies examining the effect these apps have on a hotel’s bottom line profitability or NOI.

Journal

Journal of Hospitality and Tourism Technology – Emerald Publishing

Published: Aug 1, 2016

References

  • The moderator mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations
  • Looking beyond RevPAR
  • A model of ICDT internet flows on mobile devices for the travel and tourism consumer
  • Lodging demand for urban hotels in major metropolitan markets