Crisis Management Strategy for Recovery of Small and Medium Hotels after the COVID-19 Pandemic in Thailand
Abstract
:1. Introduction
2. Literature Review
2.1. Cost-Saving (CS)-Related Strategy
2.2. Revenue Management (RM)-Related Strategies
2.3. Customer Retention (CR)-Related Strategies
2.4. Service Provision (SV)-Related Strategies
3. Research Methodology
3.1. Questionnaire Development
3.2. Sample and Procedure
4. Results
4.1. Reliability and Validity Test
4.2. Hypothesis Test
5. Discussion
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Category | Recovery Strategies | Code |
---|---|---|
Cost-saving-related strategies (4 items) | Save labor costs by laying off employees, offering unpaid vacations, reducing the number of hours/workdays per week, reducing outsourcing contracts, and reducing wages [15,29,30] | CV1 |
Save operational costs by limiting hotel services and closing less used facilities [6,14,17] | CV2 | |
Maintain cost savings by postponing non-essential renovation and maintenance and purchasing lower-cost office supplies [4] | CV3 | |
Reduce marketing costs by using free tools and reducing sale promotion activities and OTAs (based on interviews with hotel managers) | CV4 | |
Revenue management-related strategies (4 items) | Enable service transformation by shifting to quarantine services and COVID-19 care units [15,32,33] | RM1 |
Diversify revenue by providing takeaway and food delivery services for local communities [14,29,33] | RM2 | |
Manage distribution channels by investing in digital marketing tools and OTAs [31,34,36] | RM3 | |
Target new markets and create new packages and special offers [14,17,32,35] | RM4 | |
Customer relation-related strategies (4 items) | Implement epidemic prevention standards/green promotion [14,29,37,38] | CR1 |
Train employees on strictly implementing hygiene standards and cleaning safety [13] | CR2 | |
Enable service innovation by inventing new automated service processes, such as contactless check-in/check-out, online service ordering, digital menus, and smart room control [1,15,17,29,39] | CR3 | |
Enhance communication by creating a marketing campaign to improve and rebuild customer confidence and using digital platforms such as social media to communicate with customers [36,40] | CR4 | |
Service provision-related strategies (4 items) | Provide flexible services such as flexible reservation program, flexible rescheduling, and reservation postponement during the COVID-19 pandemic [14,27,35] | SV1 |
Offer personalized services to reduce customer uncertainty in the COVID-19 situation [40] | SV2 | |
Offer additional benefits instead of reducing prices [35] | SV3 | |
Provide employee training for the new normal, including changes in customer behavior, technology skills, and multi-tasking skills (based on interviews with hotel managers) | SV4 | |
Hotel recovery strategies (4 items) | Hotels should focus on cost management (based on interviews with hotel managers) [4,6,14,15,17,29,30] | REC1 |
Hotels should focus on revenue management [14,15,17,29,31,32,33,34,35,36] | REC2 | |
Hotels should focus on customer relationship management [13,14,15,17,29,36,37,38,39,40] | REC3 | |
Hotels should focus on service quality enhancement (based on interviews with hotel managers) [14,27,35,40] | REC4 |
Province | Population | Proportion of Sample | Respondents |
---|---|---|---|
Chiang Mai (CM) | 552 | 157 | 204 |
Lampang (LP) | 44 | 11 | 24 |
Mae Hong Son (MHS) | 62 | 17 | 18 |
Chiang Rai (CR) | 208 | 58 | 65 |
Phrae (PR) | 30 | 8 | 15 |
Lamphun (LN) | 24 | 6 | 10 |
Nan (NN) | 48 | 14 | 32 |
Phayao (PY) | 21 | 6 | 18 |
Total | 989 | 277 | 386 |
Characteristics of Hotels | n | % |
---|---|---|
Location | ||
City center | 244 | 63 |
Suburb | 87 | 23 |
Near natural destination | 55 | 14 |
Ownership | ||
Independent hotel | 331 | 86 |
Chain hotel | 33 | 9 |
Management contract | 10 | 3 |
Franchise hotel | 12 | 3 |
Service offering | ||
Room only | 180 | 47 |
Room and restaurant | 124 | 32 |
Room and restaurant or conference room | 32 | 8 |
Room, restaurant, and conference room | 50 | 13 |
Price | ||
THB < 500 | 61 | 16 |
THB 501–1000 | 201 | 52 |
THB 1001–1500 | 69 | 18 |
>1501 THB | 55 | 14 |
Length of Time in Business | ||
<5 years | 89 | 23 |
5–10 years | 185 | 48 |
11–15 years | 57 | 15 |
>15 years | 55 | 14 |
Construct | Variable | Factor Loading | AVE | CR | Alpha Coefficient |
---|---|---|---|---|---|
CS | cs1 cs2 cs3 cs4 | 0.77 0.73 0.72 0.57 | 0.51 | 0.79 | 0.88 |
RM | rm1 rm2 rm3 rm4 | 0.79 0.71 0.70 0.67 | 0.52 | 0.81 | 0.92 |
CR | cr1 cr2 cr3 cr4 | 0.86 0.86 0.82 0.62 | 0.55 | 0.86 | 0.85 |
SV | sv1 sv2 sv3 sv4 | 0.87 0.78 0.66 0.66 | 0.51 | 0.83 | 0.91 |
REC | rec1 rec2 rec3 rec4 | 0.85 0.78 0.72 0.71 | 0.59 | 0.85 | 0.93 |
CS | RM | CR | SV | REC | |
---|---|---|---|---|---|
CS | 1 | ||||
RM | 0.67 | 1 | |||
CR | 0.40 | 0.55 | 1 | ||
SV | 0.57 | 0.73 | 0.67 | 1 | |
REC | 0.36 | 0.43 | 0.59 | 0.61 | 1 |
Fit Index | x2 | df | x2/df | TLI | CFI | RMSEA |
---|---|---|---|---|---|---|
Criterion [45] | <5 | Close to 1 | >0.9 | ≤0.08 | ||
Value | 770.54 | 197 | 3.9 | 0.84 | 0.87 | 0.08 |
Hypothesis and Structural Path | Std. Path Estimate | Critical Z-Value | P > |Z| | Result |
---|---|---|---|---|
H1: CS → REC | 0.035 | 0.83 | 0.405 | Rejected |
H2: RM → REC | −0.065 | −1.23 | 0.217 | Rejected |
H3: CR → REC | 0.331 | 3.49 | 0.001 | Accepted |
H4: SV → REC | 0.490 | 4.90 | 0.001 | Accepted |
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Promnil, N.; Polnyotee, M. Crisis Management Strategy for Recovery of Small and Medium Hotels after the COVID-19 Pandemic in Thailand. Sustainability 2023, 15, 4194. https://doi.org/10.3390/su15054194
Promnil N, Polnyotee M. Crisis Management Strategy for Recovery of Small and Medium Hotels after the COVID-19 Pandemic in Thailand. Sustainability. 2023; 15(5):4194. https://doi.org/10.3390/su15054194
Chicago/Turabian StylePromnil, Niramol, and Maythawin Polnyotee. 2023. "Crisis Management Strategy for Recovery of Small and Medium Hotels after the COVID-19 Pandemic in Thailand" Sustainability 15, no. 5: 4194. https://doi.org/10.3390/su15054194