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01May '12

Identifying the Attributes of Blue Ocean Strategies in Hospitality

International Journal of Contemporary Hospitality Management

Theme: Integration of hospitality management theory and practice with blue ocean strategy concepts.

Summary: This study attempts to integrate hospitality management theory and practice with blue ocean strategy and suggests that blue ocean strategy offers important advantages with regards to company survival in the turbulent business environment of the hotel industry, particularly in Taiwan. Thirty two senior and top managers from 15 international tourist hotel chains in Taiwan were interviewed in this exploratory study to understand the context in which blue ocean strategy could be implemented in the hotel industry. The analysis revealed that hoteliers in Taiwan could create a blue ocean by eliminating travel barriers for visitors to Taiwan and removing constraints on foreign capital investment; reducing in-room equipment and amenities; raising brand awareness, cross-industry strategic alliances and customized travel packages; and creating packages for accompanying cultural tourism, integrating markets among regional hotels and creating a regional brand for the Asia Pacific. On the theoretical side, the authors demonstrate that concepts from customer relationship management (CRM) and network theory can be integrated into the implementation of a blue ocean strategy and indicate that differentiation between lodging offerings and the low cost advantages of hotels can be achieved by incorporating revenue management systems into blue ocean strategy. They also show that the modern hospitality environment calls for greater understanding of the value perceptions of guests in order to create new markets, expand brands, and create strategic alliances.

Reference: Yang, Jen-te. "Identifying the Attributes of Blue Ocean Strategies in Hospitality." International Journal of Contemporary Hospitality Management. 24 (2012): 701-720.
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