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How does demand uncertainty affect food and beverage capacity in the hotel industry?

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  • Chiang-Ming Chen
  • Hsien-Hung Chiu
  • Chien-Lung Hsu

Abstract

This study investigates the effect of demand uncertainty on hotels’ food and beverage (F&B) capacity using the operation data of international tourist hotels in Taiwan. The empirical results of this study show that demand uncertainty leads to an increase in F&B capacity. Moreover, the magnitude of this effect increasingly strengthens for hotels with larger F&B scales. Our results together with other studies on room capacity collectively indicate that hotels’ overcapacity problem resulting from demand uncertainty considerably varies with hotel scales and between different hotel sectors.

Suggested Citation

  • Chiang-Ming Chen & Hsien-Hung Chiu & Chien-Lung Hsu, 2016. "How does demand uncertainty affect food and beverage capacity in the hotel industry?," Current Issues in Tourism, Taylor & Francis Journals, vol. 19(13), pages 1288-1294, November.
    • Handle: RePEc:taf:rcitxx:v:19:y:2016:i:13:p:1288-1294
    DOI: 10.1080/13683500.2015.1087478
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