• Land and Housing Review
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• v.9 no.4
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• pp.10-18
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• 2018

As the volatility increasement of the number of tourist, there was been controversy over supply-demand imbalance in hotel market. The purpose of this study is to analysis on determinants of hotel occupancy rate in Jeju Island. The quantitative method is based on cointegrating regression, using an empirical dataset with hotel from 2000 to 2017. The primary results of research is briefly summarized as follows; First, there are high relationship between total hotel occupancy rate and hotel occupancy of foreign tourist. The volatility of hotel occupancy is caused by foreigner user than local tourists though local tourist high propotion of hotel occupancy in Jeju Island. Second, hotel occupancy of local tourist has not relationship with demand and supply variables. Because some hotel users are not local tourists but local resident, and effects to other variables of hotel consumer trend, accommodation such as Guest house, Airbnb. Third, there are high relationship between foreign hotel occupancy rate and demand-supply variables. These research imply that total management of supply-demand is very important to seek stability of hotel occupancy rate in Jeju Island. Also it can provide a useful solution regarding mismatch problem between supply-demand as well as development the systematic forecasting model for hotel market participants.

• Industrial Engineering and Management Systems
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• v.16 no.1
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• pp.103-108
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• 2017

Tourism is a sector that plays an important role in the economic growth of Indonesia. Bandung as the capital of West Java province is known as the city with diverse tourism potential, both in the attractiveness of the city and surrounding natural beauty. DHR is a three stars resort hotel in the city with a strategic location. As a three stars resort hotel, DHR has been experiencing occupancy rate problems, consequently, it cannot often reach the set targets, both during high season and low season. The purpose of this study is to identify the factors of hotel performance that influences consumer staying back decision in the future. Questionnaires have been distributed to hotel guests to gather information regarding their interest and the performance assessment of the hotel services and facilities, and staying back decision in the future. Discriminant Analysis and Hypothesis Testing are used to determine which hotel performance variables will directly affect consumer staying back decision. The result of this study provide marketing strategy that should be implemented by the hotel management in order to increase its occupancy rate.

• Culinary science and hospitality research
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• v.21 no.5
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• pp.214-220
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• 2015

This study examines whether the two variables that encompass the number of rooms sold and occupancy, as independent variables, positively affect a total of revenue generated from the hotel industry. Using a simple regression analysis and a standard multiple regression analysis, the study evaluates if the two independent variables play an important role in influencing a total of revenue in the hotel industry. A finding tells that researchers need consider a removal of the occupancy rate for a better and accurate prediction. It is expected that this study will contribute to a theoretical development of a study group that focuses on what determinants enable to improve a financial performance in the hotel sector.

• Journal of Korean Society for Quality Management
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• v.41 no.4
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• pp.513-525
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• 2013

Purpose: The purpose of this paper are to propose a strategic map for hotel industry through analyzing the relationship between service resource, operational capabilities, and performance. Methods: A phone survey was conducted among Korean hotels, and 102 data sets were collected. Measurement items are assessed using both cognitive and objective scales. Results: As results, 'superior group', which is superior in both physical resources and human resources, is excellent in all capabilities and also in room occupancy rate. On the other hands, 'inferior group', which is inferior in both physical resources and human resources, shows lower achievements is in most areas except speed. In addition, physical superior group is better than human superior group in most capabilities except speed, but human superior group shows better results than physical superior group in both room occupancy rate and customer satisfaction. Conclusions: Through the empirical analysis, the conclusions attained are as follows; First, human resources affect customer satisfaction more directly that physical resources. Second, the balancing between physical resources and human resources has an importance to improve operational capabilities.

• Journal of The Korean Digital Architecture Interior Association
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• v.10 no.2
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• pp.5-12
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• 2010

Unlike housing development project that can ensure profit by selling built units, a hotel development depends on long-term business operation to be profitable due to characteristics of service industry. The expected cash flow has substantial uncertainty depending on room occupancy rate and room charge. Thus, even after construction is complete, business risk tends to rise. It is necessary to ensure strategic response to uncertainty in future value of a hotel. The objective of the study is to explore strategic measures to deal with risk and uncertain future value in hotel development project by adopting abandonment option, which is a type of real options. The case in analysis had sevenyears of project period: Two years for construction, and five years for operation; a plan was made to sell the hotel after five years' of operation. For the research purpose, option value ofrecoverable investment amount was estimated, and value of abandonment option was KRW 124.921 billion. When abandonment option is applied, the project value was deemed to be KRW 120.592 billion. Generally, the amount of loss is enormous when a real estate project like a hotel development fails, and therefore, application of option is expected to be an effective measure to leverage uncertainty of a project.

• Industrial Engineering and Management Systems
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• v.12 no.3
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• pp.207-223
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• 2013

Revenue management (RM) has been widely used to model products characterized as perishable. Classical RM model assumed that price is the sole factor in the model. Thus price adjustment becomes a crucial and costly factor in business. In this paper, an optimal pricing model is developed based on minimization of soft customer cost, one kind of price adjustment cost and is solved by Lagrange multiplier method. It is formed by expected discounted revenue/bid price integrating quantity-based RM and pricing-based RM. Quantity-based RM consists of two capacity models, namely, booking limit and overbooking. Booking limit, built by assuming uncertain customer arrival, decides the optimal capacity allocation for two market segments. Overbooking determines the level of accepted order exceeding capacity to anticipate probability of cancellation. Furthermore, pricing-based RM models occupancy/demand rate influenced by internal and competitor price changes. In this paper, a mathematical model based on game theoretic approach is developed for two conditions of deterministic and stochastic demand. Based on the equilibrium point, the best strategy for both hotels can be determined.