Towards performance measurement in hotels : an incremental approach

The overall aim of this study is to investigate the phenomenon of performance measurement in independently owned hotels in Ireland in order to understand the role of measurement in the management of the largest component of the hotel sector. The primary objectives of this study are to investigate the extent to which Irish hotel operators are utilising performance measurement techniques, to establish the rationale for the use of selected performance measures in independent hotels and to understand approaches to performance measurement in the management of independent hotels. A comprehensive investigation of existing performance management and measurement activity is provided in this study. A mixed methods approach to the research was undertaken to gather data on the phenomenon of performance measurement, allowing for a triangulation of data through multiple sources. A survey questionnaire was carried out within the hotels in Ireland followed by focus groups and indepth interviews carried out in a number of small and medium-sized hotels in Ireland. A number of key' performance measurement issues were investigated and include the rationale for performance measurement, the benefits of performance measurement, those responsible for carrying out the function, critical success factors impacting on the business and performance dimensions and measures utilised by hotel operators in the study. The findings of this research have implications for a number of stakeholders, however, the greatest impact will be on the small and medium-sized hotel operator. The research shows there is a need for these hotel operators to adopt a more structured formal approach to performance measurement. A number of models of performance measurement for small, medium-size and large hotels are proposed. These models will contribute to the management of performance in the hotel sector in Ireland, leading to increased effectiveness which is especially important in the current economic climate that the hotel and tourism sector is facing and will face into the future.