The Other Side of Technology Adoption: Examining the Relationships Between e-Commerce Expenses and Hotel Performance
Keywords
IT, E-commerce, rooms revenue, gross operating profit, hotel performance
Abstract
As information technology (IT) increasingly permeates all aspects of the contemporary society, hotels have spent millions of dollars to deploy electronic commerce (e-commerce) tools and develop appropriate strategies to attract and retain guests. Yet, while the literature reflects the drivers of adopting certain e-commerce tools, it does not provide a conclusive answer regarding the effectiveness of e-commerce expenditures. Specifically, it is unclear whether such expenditures affect performance in terms of revenue and gross operating profit, or whether such effects are consistent over time and across different chain scales. Based on financial data reported by a sample of 275 hotels from 2007 through 2012, this study found that e-commerce expenses significantly and positively impacted rooms revenue for all sample years, except in 2007. When subgroup analyses were performed by chain scale, it was found that e-commerce expenses significantly contributed to the gross operating profit for midscale and upscale hotels but not for the luxury, upper upscale, and the upper midscale categories.
Publication Date
12-26-2014
Original Citation
Hua, N., Morison, C., & DeFranco, A. (2015). “The Other Side of Technology Adoption: Examining the Relationships between E-Commerce Expenses and Hotel Performance.” International Journal of Hospitality Management. 45, 109-120.
Number of Pages
109-120
Document Type
Paper
Language
English
Source Title
International Journal of Hospitality Management
Volume
45
Copyright Status
Unknown
Copyright Date
2015
College
Rosen College of Hospitality Management
Location
Rosen College of Hospitality Management
STARS Citation
Hua, Nan; Morosan, Cristian; and DeFranco, Agnes, "The Other Side of Technology Adoption: Examining the Relationships Between e-Commerce Expenses and Hotel Performance" (2014). Faculty Scholarship and Creative Works. 519.
https://stars.library.ucf.edu/ucfscholar/519
Accessibility Statement
This item was created or digitized prior to April 24, 2027, or is a reproduction of legacy media created before that date. It is preserved in its original, unmodified state specifically for research, reference, or historical recordkeeping. In accordance with the ADA Title II Final Rule, the University Libraries provides accessible versions of archival materials upon request. To request an accommodation for this item, please submit an accessibility request form.