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The Economics of Quality in the Hotel Business

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  • Ole Skalpe
  • KÃ¥re Sandvik

Abstract

There are few empirical studies on the economics of quality, and case studies and anecdotes dominate current research. This paper proposes that quality requires resources (input) and that quality has positive effects on economic performance (output). The study is based on quality ratings from 400,000 customers and detailed accounting information from more than 500 hotels. It demonstrates both that quality has positive effects on the hotels' economic performance and that superior quality requires economic resources.

Suggested Citation

  • Ole Skalpe & KÃ¥re Sandvik, 2002. "The Economics of Quality in the Hotel Business," Tourism Economics, , vol. 8(4), pages 361-376, December.
    • Handle: RePEc:sae:toueco:v:8:y:2002:i:4:p:361-376
    DOI: 10.5367/000000002101298188
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    References listed on IDEAS

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    1. Van Ackere, Ann & Warren, Kim & Larsen, Erik, 1997. "Maintaining service quality under pressure from investors: a systems dynamics model as a hands-on learning tool," European Management Journal, Elsevier, vol. 15(2), pages 128-137, April.
    2. Lakshman Krishnamurthi & S. P. Raj, 1991. "An Empirical Analysis of the Relationship Between Brand Loyalty and Consumer Price Elasticity," Marketing Science, INFORMS, vol. 10(2), pages 172-183.
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    Cited by:

    1. Carlos Gómez & Javier Lozano & Javier Rey-Maquieira, 2008. "Environmental policy and long-term welfare in a tourism economy," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(1), pages 41-62, March.

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