Loyalty Programs Improve Hotel Revenues, says CQ Best Article

Mar 04, 2009

Contact:  Glenn Withiam, 607.255.3025, grw4@cornell.edu

Cornell Hospitality Quarterly Best Article Establishes Benefits of Loyalty-based Marketing Expenditures

But Some Hotels Make More Money by Trimming Certain Categories

Ithaca, NY, March 4, 2009 – An analysis of marketing expenditures by more than 2,800 U.S. hotels has been voted the best article for 2008 in the Cornell Hospitality Quarterly (CQ). The study is the first to establish a solid connection between spending on loyalty programs and net operating income. The winning article, “The Relationship of Sales and Marketing Expenses to Hotel Performance in the United States,” by John W. O'Neill, Bjorn Hanson, and Anna S. Mattila, was published in the November 2008 CQ. O'Neill and Mattila are on the faculty at Pennsylvania State University, while Hanson is at New York University.

“This is a groundbreaking study,” said Linda Canina, editor of the Cornell Quarterly and an associate professor at the Cornell School of Hotel Administration. “By analyzing several hotel segments, the authors identified the type of hotels that benefit from additional spending on loyalty programs, and those that should keep their marketing payroll in line. This is the type of study we most like to publish, because it both advances academic knowledge and provides managers with new information to improve their resource allocation strategies.”

The article was selected from a strong field of articles nominated by CQ editorial board members and Cornell faculty. Two articles dealing with human resources issues were runners up. First runner up was “Recognizing the Emotional Element in Service Excellence,” by Misty M. Johanson and Robert H. Woods, both at University of Nevada, Las Vegas. This article reported on strategies by human resources directors for assisting employees with the emotional demands of hotel work. The second runner up, "Contextual Factors and Cost Profiles Associated with Employee Turnover," by Cornell professors J. Bruce Tracey and Timothy R. Hinkin, focused on the specific factors that increased employee turnover costs and offered strategies to reduce turnover costs.

Published by the Cornell School of Hotel Administration, the Cornell Hospitality Quarterly is now in its fifth decade of publishing research based articles that have practical implications for the hospitality industry. Subscriptions and individual article downloads are available though Sage Publishing, http://cqx.sagepub.com/.

About the Cornell Hospitality Quarterly

The Cornell Hospitality Quarterly (CQ) editorial content is broad and publishes research in all business disciplines that contribute to management practice in the hospitality and tourism industries. The objective of the CQ is to help all those involved or interested in the hospitality industry to keep up-to-date on the latest research findings and theory development in order to improve business practices and to stay informed of successful strategies.

About The Center for Hospitality Research
A unit of the Cornell School of Hotel Administration, The Center for Hospitality Research (CHR) sponsors research designed to improve practices in the hospitality industry. Under the lead of the center's 77 corporate affiliates, experienced scholars work closely with business executives to discover new insights into strategic, managerial and operating practices. The center also publishes the award-winning hospitality journal, the Cornell Hospitality Quarterly. To learn more about the center and its projects, visit www.chr.cornell.edu.

Center partners and sponsors: AIG Global Real Estate Investment, American Airlines Admirals Club, Davis & Gilbert LLP, Deloitte & Touche USA LLP, Denihan Hospitality Group, eCornell & Executive Education, Expedia, Inc., Four Seasons Hotels and Resorts, Fox Rothschild LLP, FX Real Estate and Entertainment, Inc., General Growth Properties, Inc., HVS, InterContinental Hotels Group, job.travel, Jumeirah Group, LRP Publications, Marriott International, Inc., Marsh's Hospitality Practice, McDonald's USA, Mobil Travel Guide, Inc., Philips Hospitality, PricewaterhouseCoopers, Proskauer Rose LLP, SAS, Smith Travel Research, Southern Wine and Spirits of America, Inc., SynXis (a Sabre Holdings Corporation), Taj Hotels Resorts and Palaces, Thayer Lodging Group, TIG Global, Thompson Hotels, Travelport, WATG, and WhiteSand Consulting

Center friends: 4Hoteliers.com • American Tescor, LLC • Argyle Executive Forum • Caribbean Hotel and Restaurant Buyers Guide • Cody Kramer Imports • Cruise Industry News • DK Shifflet & Associates • ehotelier.com • EyeforTravel • Fireman's Fund Insurance Company • Gerencia de Hoteles & Restaurantes • Global Hospitality Resources • Hospitality Financial and Technology Professionals (HFTP) • hospitalityInside.com • hospitalitynet.org • Hospitality Technology Magazine • Hotel Asia Pacific • Hotel China • HotelExecutive.com • Hotel Interactive • Hotel Resource • International CHRIE • International Hotel and Restaurant Association • International Hotel Conference • International Society of Hospitality Consultants (ISHC) • iPerceptions • Lodging Hospitality • Lodging Magazine • Milestone Internet Marketing • MindFolio • Parasol • PhoCusWright, Inc. • PKF Hospitality Research • The Resort Trades • RealShare Hotel Investment & Finance Summit • Resort+Recreation Magazine • RestaurantEdge.com • Shibata Publishing Co. • Synovate • The Lodging Conference • TravelCLICK • UniFocus • WageWatch, Inc. • WIWIH.COM