Strategic alignment leverage between hotels and companies: The buyer-supplier relationship perspective

Hoteliers are seeking ways to increase their revenue by working with travel agencies to costeffectively expand sales. In addition, they are simultaneously turning to hotel bookings to bolster their revenue in the face of decreasing airline commissions. The research objectives of the present study included determining how the strategic decisions of cooperating contract companies and travel agencies of the hotels are influenced by the service vision and standard service communication. Data were obtained via a mailed questionnaire survey from a sample of travel agencies and contract companies in Taiwan. Of the 300 questionnaires sent, 201 responses (67%) were received, yielding a usable response of 192 fully completed questionnaires. The use of the structural equation model to test the theoretical model of collaboration relationship could lead to a greater understanding of the nature and determinants of choice and decisions related to cooperation between firms. From the perspective of buyer-supplier relationships, hotels are seeking ways to develop long-term relationships and to increase their revenue by collaborating with travel agencies and contract companies, and through the firm's service vision and service-standard communication, hotels can develop services to align with their needs. Moreover, service trends affecting hoteliers may include adapting customer demands, increased expectations of value and quality, and an increasingly highly competitive environment. Hotels would therefore need to be able to make these changes in order to continue this alignment relationship, with substitution possibly being an option for these firms when hotels cannot do this. That is, hotels generally face fierce competition, and to be able to compete they must make continuous efforts to maintain product and service quality; they also need to be innovative to be the leading performers. (C) 2010 Elsevier Ltd. All rights reserved.