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  • HITEC Special: Revenue Strategy: Not Just a Fancy New Name for Revenue Management

    By Cindy Estis Green. A strategic view of revenue calls for proactive business mix planning and decision-making around deployed resources, well beyond reacting to what comes over the transom. Excerpt from the 2018 HITEC Bytes Special Report.

  • HITEC Special: Forecasting Accuracy: The Living Forecast

    By Jill Wilder. Forward-looking, continuously updated statistical trend analysis is emerging as a strategic tool that performs the practical magic of creating an accurate forecast you can take to the bank.

  • Members Only: IT Spending in the Lodging Industry

    HFTP Research Report: The new USALI Schedule 6 — Information and Telecommunications Systems and the effects thus far on the industry. An analysis of IT spending data in the industry and compliance practices by lodging executives.

  • Primary Club Metrics

    Survey results identify which metrics are most often used to determine performance. By Agnes DeFranco, Ed.D., CHAE; Tanya Venegas, MBA, MHM, CHIA; and Amanda Belarmino

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Labor Scarcity, Finance, and Innovation: Evidence from Antebellum America

Cornell University School of Hotel Administration - Research & Publications·22 June 2018
This paper establishes labor scarcity as an important economic channel through which access to finance shapes technological innovation. We exploit antebellum America, a unique setting with (1) staggered passage of free banking laws across states and (2) sharp differences in labor scarcity between slave and free states. We find that greater access to finance spurred technological innovation as measured by patenting activities, especially in free states where labor was relatively scarce. Interestingly, in slave states where slave labor was prevalent, access to finance encouraged technological innovation that substituted for free labor, but discouraged technological innovation that substituted for slave labor.
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The Real Effects of Sharing Economy: Evidence from Airbnb

Cornell University School of Hotel Administration - Research & Publications·22 June 2018
Sharing economy has developed rapidly in recent years, but little is known regarding its real effects. This paper examines how a pioneer of sharing economy-Airbnb-affects local economy. Using venture capital infusions as plausibly exogenous shocks to Airbnb's expansion into a new county, we find that Airbnb expansion leads to poorer hotel performance in the local county. Meanwhile, Airbnb expansion appears to reduce unemployment rate and increase household income. Further analysis suggests that increased employment is concentrated in industries that are complementary to Airbnb's business and in employee groups with lower education levels. Our study sheds new light on the real effects of the sharing economy and provides important policy implications for policymakers.
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The Role of Coordinated Marketing-Operations Strategy in Services: Implications for Managerial Decisions and Execution

Cornell University School of Hotel Administration - Research & Publications·22 June 2018
Purpose In this article, we discuss the importance of a coordinated marketing and operations strategy in goods and service producing business organizations. Customer engagement and co-production are imperative service delivery considerations, and therefore an aligned marketing and operations strategy is essential for the formulation, development, and effectiveness of managerial decisions especially for service sector firms. Design/Methodology/Approach We present arguments in support of this paper's primary objectives by reviewing past research that have introduced theoretical frameworks, empirical support and applications in support of the close coordination between marketing and operations strategy. We then describe how the interrelationship between marketing and operations strategy impacts several managerial decisions. Findings We discuss several different types of managerial decisions within goods and service producing firms that require active interaction between marketing and oper
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Lodging Stocks Outperform Casinos on Wall Street, Reversing Their 1992-93 Performance

Cornell University School of Hotel Administration - Research & Publications·22 June 2018
A comparison of the stock market performance of lodging stocks and casino stocks over the past year reveals returns superior to the S&P500 for both groups. Over the 52-week period ending March 18, 1994, the average price of a sample portfolio of lodging stocks rose 61.6%, and a corresponding portfolio of casino stocks advanced 37.2%, compared with the S&P500's 4.6% return over the same period. The gain for lodging stocks represents a sharp rebound from the prior 52-week period, but a slowdown for the casino stocks. The strong showing of these stocks over the last year, as well as the changes in relative performance can be explained by an analysis of measures of fundamental value, such as the profit margin, return on equity, and return on assets, as well as structural changes in the industries. Interest in lodging and casino stocks by institutional investors is encouraging, but significant uncertainties, in particular with respect to taxation of gaming revenues and legalization of speci
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How Strong is the Pull of the Past? Measuring Personal Nostalgia Evoked by Advertising

Cornell University School of Hotel Administration - Research & Publications·22 June 2018
Marketers frequently evoke personal nostalgia in their advertising. To date, scales have been developed to measure the propensity to get nostalgic but not the actual dimensions of personal nostalgia. Results from four studies show that advertising evoked personal nostalgia comprises four correlated but distinct dimensions: past imagery, positive emotions, negative emotions, and physiological reactions. This multidimensional scale showed a high level of validity and reliability. Moreover, due to careful choice of sampling frames, the study demonstrates a high level of external generalizability. Evaluating nostalgia-based advertising using the study's multidimensional scale may provide marketers with strategic insights for developing and fine-tuning advertising aimed at inducing nostalgia among consumers.
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Assigning Telephone Operators to Shifts at New Brunswick Telephone Company

Cornell University School of Hotel Administration - Research & Publications·14 June 2018
I developed a procedure for assigning telephone operators to shifts at New Brunswick Telephone Company (NBTel). Al though the problem has received scant attention in the literature, its solution greatly affects employees' satisfaction with their work schedules. NBTel requires that all shifts be assigned to employees, and it is obligated contractually to satisfy preferences for shifts in order of employee seniority. The specialized shift assignment heuristic (SSAH) that I developed runs on a personal computer, generating approximately three solutions per second. Employee and shift databases are maintained in a spreadsheet, and macros are used to integrate the heuristic into the spreadsheet. Both management and employees see SSAH as an improvement over the previous manual procedure.
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Labor Staffing and Scheduling Models for Controlling Service Levels

Cornell University School of Hotel Administration - Research & Publications·14 June 2018
The problems of labor staffing and scheduling have received substantial attention in the literature. We introduce two new models of the labor staffing and scheduling problems that avoid the limitations of existing models. Collectively, the models have five important attributes. First, both models ensure the delivery of a minimally acceptable level of service in all periods. Second, one model can identify the least expensive way of delivering a specified aggregate level of customer service (the labor staffing problem and a form of labor scheduling problem). Third, the other model can identify the highest level of service attainable with a fixed amount of labor (the other form of the labor scheduling problem). Fourth, the models enable managers to identify the pareto relationship between labor costs and customer service. Fifth, the models allow a degree of control over service levels that is unattainable with existing models. Because of these attributes, which existing models largely do not possess, we expect these models to have broad applicability in a wide range of organizations operating in both competitive and noncompetitive environments.
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Leaving Talent on the Table? The Importance of Developing and Retaining Women Leaders

Cornell University School of Hotel Administration - Research & Publications·12 June 2018
While it’s been twenty years since McKinsey & Co. first coined the term ‘War for Talent’, many companies continue the fight to attract and retain the best and brightest. In an increasingly dynamic and competitive marketplace, retaining human capital can, literally, be the difference between life and death.
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A Glimpse into the Future of Work

Cornell University School of Hotel Administration - Research & Publications·12 June 2018
In this Instagram age of texts and tweets, it should come as no surprise that the most important and complex workplace challenge facing CEOs and CHROs is neatly summarized by the acronym ‘FoW’. Forget YOLO, FOMO or even VUCA, the Future of Work (FoW) is top of mind for global leaders as they wrestle with exactly what it means and how to best prepare their organizations for a future that is increasingly hard to predict. The good news? An April 2018 study by Catalant found that 63% of surveyed companies had a FoW plan in place1. The bad news? By the time the proverbial ink is dry, those plans may be woefully out of date or misaligned to the changing dynamics of the FoW.
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HR Metrics and Talent Analytics

Cornell University School of Hotel Administration - Research & Publications· 8 June 2018
Once again, there is buzz about organizations working to apply numbers to managing their talent. The opportunities created by "big data' in human resources (HR), along with the continuous pressure for greater effectiveness and productivity, have renewed calls for more analytical HR management as the way of the future. But we have heard this call in HR many times.
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A Morph-Based Simulated Annealing Heuristic for a Modified Bin-Packing Problem

Cornell University School of Hotel Administration - Research & Publications· 8 June 2018
This paper presents a local-search heuristic, based on the simulated annealing (SA) algorithm for a modified bin- packing problem (MBPP). The objective of the MBPP is to assign items of various sizes to a fixed number of bins, such that the sum-of-squared deviation (across all bins) from the target bin workload is minimized. This problem has a number of practical applications which include the assignment of computer jobs to processors, the assignment of projects to work teams, and infinite loading machine scheduling problems.
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The Impact of Supertasters On Taste Test and Marketing Outcomes: How an Innate Characteristic Shapes Taste, Preference, Experience, and Behavior

Cornell University School of Hotel Administration - Research & Publications· 8 June 2018
This article introduces advertisers to a new segmentation technique based on an individual's inherited taste sensitivity-that is, the 'supertaster.' Three studies demonstrate that this inherited supertaster difference can explain blind taste-test anomalies, such as the Pepsi Challenge; heightened brand loyalty; and a reduced sensitivity to peripheral product cues, such as visual variations. These findings underscore a new vein of segmentation that has great promise for explaining variance in lab, expert, and crowd-sourced evaluations involving matters of taste.
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Should Cookie Monster Adopt a Healthy Lifestyle or Continue to Indulge? Insights into Brand Icons

Cornell University School of Hotel Administration - Research & Publications· 7 June 2018
Developing a brand icon has been a way for marketers to humanize and forge relationships with consumers. Icon development takes time. During this time, marketers have to face how much they stay true and consistent with their icons and how much they allow their icons to adapt to cultural changes in the marketplace. Little is known about how consumers respond to changing icons, and even less is known about whether there may be certain consumer groups that are more or less receptive to such changes. Four experiments and qualitative interviews were undertaken to gain insights into these issues. People who have a low need to belong were most impacted by changes in the icon, with effects most evident among consumers with a fearful attachment style. Feelings of rejection were found to amplify these effects. These findings have implications both for theory and practice.
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Reconsidering the 1855 Bordeaux Classification of the Medoc and Graves using Wine Ratings from 1970-2005

Cornell University School of Hotel Administration - Research & Publications· 7 June 2018
This paper examines ratings of Bordeaux wines from vintages spanning 1970 to 2005. We use ratings from three popular rating sources - Robert Parker (The Wine Advocate), Stephen Tanzer (International Wine Cellar), and Wine Spectator - to examine differences and consistencies in ratings. Our study is based on over 3, 100 ratings for ch†teau/vintage/rater combinations for the 'classified growths' as identified in the 1855 Classification. We developed a regression model with rating scores as the depending variable and independent variables for raters, vintages, ch†teaux and rater-vintage. This model explains 64.6% of the variation in rating scores. We identify the performance of individual ch†teaux and use our findings to propose an update to the 1885 classification. Based on the ratings we examined, more than half of the 61 classified growths are misclassified, with some ch†teaux moving as many as three tiers upward or downward compared to the historical classifica

Scheduling Workforce Relief Breaks In Advance Versus In Real-Time

Cornell University School of Hotel Administration - Research & Publications· 7 June 2018
This paper focuses upon employee rest breaks, or reliefs, in workforce scheduling. Historically, the workforce scheduling literature has largely ignored reliefs, as less than 18% of the 64 papers we surveyed scheduled reliefs. The argument has been that one need not schedule reliefs in advance, since they can easily be scheduled in real-time. We find this argument to be flawed. We show that failing to schedule reliefs in advance will have one of two undesirable outcomes. First, there will be a less profitable deployment of labor should all reliefs actually be taken in real-time. Second, if some reliefs are never assigned or if relief-timing restrictions are relaxed so that more reliefs may be assigned in real-time, there will be a disgruntled and less productive workforce and perhaps violations of contractual obligations. Our findings are supported by anecdotal evidence drawn from commercial labor scheduling software.
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Learning to Become a Taste Expert

Cornell University School of Hotel Administration - Research & Publications· 5 June 2018
Evidence suggests that consumers seek to become more expert about hedonic products to enhance their enjoyment of future consumption occasions. Current approaches to becoming expert center on cultivating an analytic mindset. In the present research the authors explore the benefit to enthusiasts of moving beyond analytics to cultivate a holistic style of processing. In the taste context the authors define holistic processing as non-verbal, imagery-based, and involving narrative processing.
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Script Usage in Standardized and Customized Service Encounters: Implications for Perceived Service Quality

Cornell University School of Hotel Administration - Research & Publications· 1 June 2018
This study examines the effect that verbal scripts have on customer perceived service quality for two distinct service process types. We designed a video experiment that varied the level of verbal scripting for standardized and customized service encounters. We found that in standardized service encounters, an increase in the level of verbal scripting had no effect on perceived service quality. However, for customized encounters, perceived service quality was impacted. More specifically, a predominantly scripted encounter for customized service processes, on average, resulted in the lowest perception of service quality by respondents. Since verbal scripting was shown to impact customer perceptions of service quality, we suggest that a service provider's decision regarding the degree of verbal scripting is an important service design consideration.
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Understanding Customer Value in Technology-Enabled Services: A Numerical Taxonomy Based on Usage and Utility

Cornell University School of Hotel Administration - Research & Publications· 1 June 2018
Use of technologies in service encounters can enhance service delivery and increase customer satisfaction in services. Our research develops a numerical taxonomy that provides a deeper understanding of usage and value of customer-facing technology-based innovations in the U.S. restaurant industry. In this study, utility is a proxy for intrinsic customer value. Usage was estimated by past visits to restaurants and utility was calculated by using a specific type of discrete choice experiment known as Best-Worst (or max-diff) experiment. We offer insights for service strategy technology choices and customer value in service delivery systems research and practice. Furthermore, we advance service science by discussing the inherent management pitfalls of failing to distinguish between technology usage and utility in services.
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Choice Between Non-Equity Entry Modes: An Organizational Capability Perspective

Cornell University School of Hotel Administration - Research & Publications·31 May 2018
Many studies have examined the choice between different types of equity and non-equity modes; however, none has focused on the choice between different types of non-equity modes that service firms employ routinely. This study develops a theoretical framework based on the 'organizational capability' perspective to explain the choice between two non-equity modes- franchising and management-service contracts. While previous studies are based on the premise that foreign market entrants choose a mode-equity or non-equity-that offers them most control given their particular circumstances, the premise of this study is that foreign entrants choose a non-equity mode that, in addition, offers effective transfer of the firm's capabilities to the host-country venture.
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The Effects of Customer and Competitor Orientations on Performance In Global Markets: A Contingency Analysis

Cornell University School of Hotel Administration - Research & Publications·31 May 2018
Should companies adjust their orientations toward customers or toward competitors in global markets? To answer this question, we use contingency theory and examine how the effects of customer and competitor orientations on performance are moderated by different environmental conditions. Our results from the global hotel industry indicate that a customer orientation works better in economically developed markets, as well as in markets with good local business conditions, greater resource availability, and demanding customers. In contrast, a competitor orientation is more effective in markets that are economically developing, have poor local business conditions, and face resource scarcity.
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Broadening the Foreign Market Entry Mode Decision: Separating Ownership and Control

Cornell University School of Hotel Administration - Research & Publications·31 May 2018
This paper argues that the ownership and control dimensions of foreign market entry mode choice should be separated, and that foreign market entry mode decisions should be expanded to business activities beyond production and distribution. Empirical results from the global hotel industry indicate that the transferability of the entrant's competitive advantages, the local market's absorptive capacity, and the availability of trustworthy local partners differentially affect the ownership and control dimensions of the entry mode decision.
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Why Do Workers with Disabilities Earn Less? Occupational Job Requirements and Disability Discrimination

Cornell University School of Hotel Administration - Research & Publications·25 May 2018
We analyse competing explanations for the lower pay of employees with disabilities, using 2008-2014 data from the American Community Survey matched to O*Net data on occupational job requirements. The results indicate that only part of the disability pay gap is due to productivity-related job requirements. The remaining pay gap - experienced by employees whose impairments should not limit their productivity - reflects potential discrimination. The discrimination-related pay gaps appear to be smallest and possibly non-existent for women and men with hearing impairments, and largest for those with cognitive and mobility impairments. Overall the results indicate that discrimination is likely to remain an influence on the pay of many workers with disabilities.
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Because It Takes Two: Why Post-Dispute Voluntary Arbitration Programs Will Fail to Fix the Problems Associated with Employment Discrimination Law Adjudication

Cornell University School of Hotel Administration - Research & Publications·25 May 2018
For more than a decade, the employment law community, including the plaintiffs’ bar, the defense bar, and a cavalcade of academicians, has fiercely debated the use (or misuse, as some argue) of arbitration for the adjudication of federal and state employment law cases. The majority of the cases at issue in the debate are wrongful termination cases. In most wrongful termination cases, ex-employees allege that their ex-employers, or their employer’s alleged agents, harassed or otherwise discriminated against them, which resulted in their termination (or other adverse action). Resolution of such cases, whether via litigation, arbitration, or any other alternative means of dispute resolution, invariably entails interpretation of federal statutes such as Title VII of the Civil Rights Act of 1964 (“Title VII”),1 the Americans with Disabilities Act (“ADA”),2 the Age Discrimination in Employment Act (“ADEA”),3 and the equivalent state and local statutes that mirror and often bolster the federal law.
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We Can Thank Harvey Weinstein for Doing What Congress and the Supreme Court Failed to Do

Cornell University School of Hotel Administration - Research & Publications·24 May 2018
While the years 2017 and 2018 will be remembered for numerous geo political and social movements, any retrospective of this time will include the issue of sexual harassment and the corresponding “Me Too” movement. In this time, sexual harassment has transformed from a workplace legal concept to an issue that is defining the fabric of the country. While no one could persuasively argue that sexual harassment has not expanded from its legal roots to a movement that transcends the law, the fact is that the concept is rooted and adjudicated in law. Sadly, the commentators and the popular press often ignore or misstate the law. This creates a dangerous culture where the public is misinformed of their rights and responsibilities. More troubling, is the fact that there are serious problems with the law that need to be understand and, we contend, changed, in order for the entire problem to be eliminated, or, at least, mitigated. This paper explains the law with regard to what constitutes sexual harassment and when the employer is liable, identifies the problems, and proposes a fix so that we can create a future workplace where the authors’ five daughters (between them) and the rest of their generation will be able to honestly not raise their hands and not have to say: “Me Too!”
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Choose Your Own Price: an Exploratory Study Requiring an Expanded View of Price's Functions

Cornell University School of Hotel Administration - Research & Publications·18 May 2018
The existing consumer behavior literature generally presents prices as costs which consumers try to minimize and/or as cues which consumers use to judge quality. This limited perspective on price's functions assumes that, if allowed to choose their own price for a good or service of known quality, consumers would always choose the lowest price possible.
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Exploring Behavioral Differences Between New and Repeat Cruisers to a Cruise Brand

Cornell University School of Hotel Administration - Research & Publications·18 May 2018
The modern leisure cruise industry is one of the most dynamic and profitable sectors of the global tourism industry. However, the cruise industry has entered a maturity stage in North America, the largest cruise market in the world, as growth of the new-to-cruise segment diminishes.

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