Importance of F&B operation in luxury hotels: the case of Asia versus the US

Sung Gyun Mun, Linda Woo, Kwanglim Seo

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

Purpose: This paper aims to understand the effect of food and beverage (F&B) services on the operating performance of luxury hotels and to identify the heterogeneous effects of the luxury hotels’ F&B operation on the business performance between Asia and the USA. Design/methodology/approach: Operating performance of luxury hotels in Asia (37 hotels), including Japan, Singapore, South Korea and Hong Kong and in the USA (72 hotels), including New York, California, Florida, Illinois and Texas was collected from STR reports. This study applied generalized estimating equations models to reach the conclusions. Findings: The emphasis on F&B services exhibits a significant positive effect on the operating performance of luxury hotels in Asia. The occupancy rate and gross operating profit per available room of luxury hotels in Asia have improved with the investment in F&B offerings. Therefore, a distinctive F&B offering should be considered as one of the main products and services rather than a supplementary service in Asia. While devotion to F&B services lacks a significant positive effect on luxury hotels in the USA. Originality/value: This study is the first effort to identify the importance of luxury hotels’ F&B operation for the overall hotel performance in Asia and the USA by focusing on the entire industry’s operating information.

Original languageEnglish
JournalInternational Journal of Contemporary Hospitality Management
DOIs
Publication statusPublished - Nov 2020

Keywords

  • Asia
  • GEE
  • GOPPAR
  • Luxury hotel F&B
  • RevPAR

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management

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