Crises Readiness and Response Strategies in Times of Disruptions in The Hotel Industry: A Strategic Resilience Framework

Authors

  • Jordan M. Cabaguing Cebu Institute of Technology University.
  • Albim Y. Cabatingan Cebu Institute of Technology University.
  • Alexander Franco A. Delantar Cebu Institute of Technology University.

DOI:

https://doi.org/10.58837/CHULA.CBSJ.46.2.4

Keywords:

Crisis Readiness, Crisis Response, Crisis Resilience Framework, Government Support, Crisis Leadership

Abstract

Several unforeseen events have been happening recently that profoundly affected individuals and organizations, underscoring the critical importance of cultivating resilience within the hotel industry. As the industry is experiencing disruptions over time, it becomes imperative for hoteliers to adopt proactive measures that not only mitigate risks but also ensure a swift and effective response when a crisis strikes. Employing the convergent parallel mixed methods approach, the research identified the determinant factors influencing crisis readiness and reaction in the hotel industry during disruptions. Quantitative data were gathered from 141 hotel employees, while qualitative insights were derived from in-depth interviews with ten hotel managers. The key findings revealed that transformational leadership was crucial for crisis readiness, detailed crisis management plans, and improved communication networks from the top management to employees and other stakeholders. It was also observed that active marketing strategies and cost-cutting in financial management are better response strategies to disruptions. Government support was highly valued by hotels and exhibited a strong positive correlation with operations, marketing, human resource management, and financial management. Regression and path analysis demonstrated that marketing and government support are significantly associated with hotel crisis readiness. The framework developed from the study serves as a blueprint for future resilience as it guides policymakers to refine their existing support programs and formulate new initiatives tailored to the needs of the industry. The hotels may develop strategic plans that prioritize crisis readiness and response.

Author Biographies

Jordan M. Cabaguing, Cebu Institute of Technology University.

College of Management, Business & Accountancy,

Albim Y. Cabatingan, Cebu Institute of Technology University.

College of Management, Business & Accountancy,

Alexander Franco A. Delantar, Cebu Institute of Technology University.

College of Management, Business & Accountancy,

References

Ahlstrom, B., Leo, U., Norqvist, L., & Isling, P. P. (2020). School leadership as (un)usual. Insights from principals in Sweden during the pandemic. International Studies in Education Administration 48(2), 35–41.

Al-qassem, A., Agha, K., Mendoza, S., & El-Farra, E. (2022). Emergency Management and its Implications for Hospitality Industry during the coronavirus disease 2019 (COVID-19) outbreak. Journal of Positive School Psychology. 6(2), 1824–1839.

Al Shobaki, M. J., Abu Amuna, Y. M., & Abu-Naser, S. S. (2016). The impact of top management support for strategic planning on crisis management: A case study on UNRWA-Gaza Strip. International Journal of Academic Research and Development, 1(10), 20-25. http://dstore.alazhar.edu.ps/xmlui/handle/123456789/261

Alves, J. C., Lok, T. C., Luo, Y., & Hao, W. (2020). Crisis challenges of small firms in Macao during the COVID-19 pandemic. Frontiers of Business Research in China, 1-23.

Bajrami, D. D., Terzic, A., Petrovi´c, M. D., Radovanovic, M., Tretiakova, T. N., & Hadoud, A. (2021). Will we have the same employees in hospitality? The impact of COVID-19 on employees’ work attitudes and turnover intentions. International Journal of Hospitality Management., 94, 102754.

Breier, M., Kallmuenzer, A., Clauss, T., Gast, J., & Kraus, S. (2021). The role of business model innovation in the hospitality industry during the COVID-19 crisis. International Journal of Hospitality Management, 92, 102723. https://doi.org/10.1016/j.ijhm.2020.102723

Bundy, J., Pfarrer, M. D., Short, C. E., & Coombs, W. T. (2017). Crises and crisis management: Integration, interpretation, and research development. Journal of Management, 43(6), 1661–1692.

Burhan, M., Talha, M., Abou, O., & Tariq, H. (2021). Crisis management in the hospitality sector SMEs in Pakistan during. International Journal of Hospitality Management, 98(July), 103037. https://doi.org/10.1016/j.ijhm.2021.103037

Casal-Ribeiro, M., Boavida-Portugal, I., Peres, R., & Seabra, C. (2023). Review of crisis management frameworks in tourism and hospitality: A meta-analysis approach. Sustainability, 15(15), 12047.

Chartoff, S. E., Kropp, A. M. & Roman, P. (2021). Disaster planning. Treasure Island (FL): Stat Pearls Publishing.

Chen, H., Zhang, L., Huang, J., Du, Y., & Hu, Y. (2020). Future-Proofing Crisis Management: COVID-19 as a learning opportunity. Journal of Contingencies and Crisis Management, 28(4), 415-427.

Coombs, W. T. (2007). Ongoing crisis communication: Planning, managing, and responding, third edition. Sage, Thousand Oaks, California.

Dagnachew, S., Cheng, I., & Chan, C. (2021). A critical assessment of crisis management research in hospitality. International Journal of Hospitality Management, 95(June 2020), 102915. https://doi.org/10.1016/j.ijhm.2021.102915

Davis, G., & Rhodes, R. A. (2020). From hierarchy to contracts and back again: Reforming the Australian public service. In Institutions on the Edge? (pp. 74-98). Routledge. https://doi.org/10.4324/9781003116127-4

Foxon, T. J., Kohler, J., & Michie, J. (2013). Towards a new complexity economics for sustainability. Cambridge Journal of Economics, 37(1), 187-208.

Grint, K., (2020). Leadership, Management, and command in the time of the coronavirus. Leadership, 16(3), 314-319.

Hao, F., Xiao, Q., & Chon, K. (2020). COVID-19 and China’s hotel industry: Impacts, a disaster management framework, and post-pandemic agenda. International Journal of Hospitality Management. 90, 102636.

Hasan, A., & Rjoub, H. (2017). The role of effective leadership styles in crisis management: A study of Erbil, Iraq. International Journal of Economics, Commerce, and Management, 5(4), 107-121.

Haupt, B. (2021). The Use of Crisis Communication Strategies in Emergency Management. Journal of Homeland Security and Emergency Management, 18(2), 125-150.

Her´edia-Colaço, V., & Rodrigues, H. (2021). Hosting in turbulent times: Hoteliers’ perceptions and strategies to recover from the Covid-19 pandemic. International Journal of Hospitality Management. 94, 102835.

Hervie, D. M., Amoako-Atta, E., Hossain, M. B., Illés, C. B., & Dunay, A. (2022). Impact of COVID-19 pandemic on hotel employees in the greater Accra region of Ghana. Sustainability, 14, 2509.

Iglesias-S´anchez, P. P., L´opez-Delgado, P., Correia, M. B., & Jambrino-Maldonado, C. (2020). How do external openness and R&D activity influence open innovation management and the potential contribution of social media in the tourism and hospitality industry? Information Technology and Tourism, 22(2), 297-323.

Israeli, A. A., Mohsin, A., & Kumar, B., (2011). Hospitality crisis management practices: The case of Indian luxury hotels. International Journal of Hospitality Management. 30(2), 367–374.

James, E. H., Wooten, L. P., & Dushek, K. (2011). Crisis management: Informing a new leadership research agenda. Academy of Management Annals, 5, 455-493.

Jerrie, Y., Chen, Y., & Wang, Y. (2021). Government and social trust vs. hotel response efficacy: A protection motivation perspective on hotel stay intention during the COVID-19 pandemic. International Journal of Hospitality Management, 97(April), 102991.

Kahn, W. A., Barton, M. A., & Fellows, S. (2013). Organizational crises and the disturbance of relational systems. Academy of Management Review, 38, 377-396.

Kim, M., Roehl, W., & Lee, S. K. (2019). Effect of hotels’ price discounts on performance recovery after a crisis. International Journal of Hospitality Management, 83, 74–82.

Kovács, A. D., Gulyás, P., & Farkas, J. Z. (2021). Tourism perspectives in national parks—A Hungarian case study from the aspects of rural development. Sustainability, 13, 12002.

Lai, I. K. W., & Wong, J. W. C. (2020). Comparing crisis management practices in the hotel industry between the initial and pandemic stages of COVID-19. International Journal of Contemporary Hospitality Management, 32(10), 3135–3156.

Lee, S. G., Kim, S., & Lee, H. (2020). Potential surprise theory: An alternative perspective on managing COVID-19. Journal of Business Research, 17, 240-243.

Lo, A., Cheung, C., & Law, R. (2006). The survival of hotels during disaster: A case study of Hong Kong in 2003. Asia Pacific Journal of Tourism Research 11(1), 65–79.

Loosemore, M. (1998). Organisational behaviour during a construction crisis. International Journal of Project Management, 16(2), 115-121.

Madanchian, M., Hussein, N., Noordin, F., & Taherdoost, H. (2017). Leadership effectiveness measurement and its effect on organization outcomes. Procedia Engineering, 181, 1043-1048.

Mojtahedi, M., Sunindijo, R. Y., Lestari, F., Suparni. & Wijaya, O. (2021). Developing hospital emergency and disaster management index using TOPSIS method. Sustainability, 13, 5213. https://doi.org/10.3390/su13095213

Mones, R. A., & Cruz, C. G. (2015). The development of a crisis management program in the Philippine hospitality and tourism industry. https://doi.org/10.13140/RG.2.1.4859.5042

Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C… & Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): A review. International Journal of Surgery, 78, 185-193.

Novelli, M., Burgess, L., Jones, A., & Ritchie, B. W. (2018). ‘No Ebola. still doomed’: The Ebola-induced tourism crisis. Annals of Tourism Research. 70, 76–87.

Nyenswah, T., Engineer, C. Y., & Peters, D. H. (2016). Leadership in times of crisis: The example of ebola virus & disease in Liberia. Health Systems and Reform, 2(3), 194–207.

Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015). Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), 533-544.

Park, J., Lee, K., Lim, J. I., & Sohn, Y. W. (2018). Leading with callings: Effects of leader’s calling on followers’ team commitment, voice behavior, and job performance. Frontiers in Psychology, 9, 1706.

PSA. (2014). PSA releases 2014 gross regional domestic product. https://rssocar.psa.gov.ph/content/psa-releases-2014-gross-regional-domestic-product

Radwan, H. R. I., & Radwan, I. (2017). Managing hotels during economic challenges: A case study on hotels in Sharm El-Sheikh and Hurghada, Egypt. Journal of Tourism and Hospitality Management, 5(2), 84-100.

Rathi, N., Soomro, K. A., & Rehman, F. U. (2021). Transformational or transactional: Leadership style preferences during Covid-19 outbreak. Journal of Entrepreneurship, Management, and Innovation, 3(2), 451-473.

Remenyik, B., Horváth, D., & Vasa, L. (2020). Relationships between cycle theories, sustainable tourism, and the effects of the COVID-19 in Hungary. Economic Annals-XXI, 185, 79–90.

Ricca, S. (2020). Following COVID-19 Developments, Industry’s Response. https://www. hotelnewsnow.com/Articles/300779/Following-COVID-19-developments-industry’s response

Rivera, M. (2020). Hitting the reset button for hospitality research in times of crisis: COVID-19 and beyond. International Journal of Hospitality and Management, 87, 102528.

Robert, KH., Madsen, P., & Desai, V. (2007). Organizational sensemaking during crisis. International Handbook of Organizational Crisis Management, 1st ed. Sage, Los Angeles, CA, pp. 107–122.

Rodríguez-Ant´on, J. M., & Alonso-Almeida, M. M., (2020). COVID-19 impacts and recovery strategies: The case of the hospitality industry in Spain. Sustainability, 12, 8599.

Roux-Dufort, C., Dupuis, A., & Roussin-Bouchard, C. (2021). Potential surprise theory in crisis management: A systematic literature review. Journal of Contingencies and Crisis Management, 29(1), 64-78.

Santana, G. (2004). Crisis management and tourism. Journal of Travel and Tourism Marketing. 15(4), 299– 321.

Shapoval, V., Hägglund, P., Pizam, A., Abraham, V., Carlbäck, M., Nygren, T., & Smith, R. M. (2021). The COVID-19 pandemic effects on the hospitality industry using social systems theory: A multi-country comparison. International Journal of Hospitality Management, 94, 102813.

Sellnow, T. L., & Seeger, M. W. (2013). Theorizing crisis communication. Malden, MA: Wiley.

Simmie, J., & Martin, R. (2010). The economic resilience of regions: Towards and evolutionary approach. Cambridge Journals of Regions, Economy, and Society, 3(1), 27-43.

Schwartz, P. (1997). Art of the long view: Planning for the future in an uncertain world. John Wiley & Sons.

Gössling, S., Scott, D., & Hall, C. M. (2021) Pandemics, tourism, and global change: A rapid assessment of COVID-19. Journal of Sustainable Tourism, 29(1), 1-20.

Tugcu, C. T. (2014). Tourism and economic growth nexus revisited: A panel causality analysis for the case of the Mediterranean Region. Tourism Management, 42, 207-212.

Tütüncü, Ö., Ozen, E., & Kurtulmuşoğlu, F. B. (2021). Future-Proofing in Crisis Management: A systematic Literature Review. Journal of Business Research, 135, 179-194.

von Oetinger, B., Kapadia, S., & Johnson, B. (2019). Sustainability of smallholder agriculture in semi-arid areas: A case study in the Thar Desert, India. Journal of Arid Environments, 168, 45-54.

UNWTO. (2020). UNWTO World Tourism Barometer May 2020 Special Focus on the Impact of COVID-19 https://webunwto.s3.eu-west-1.amazonaws.com/s3fs-public/2020-05/Barometer_May2020_full.pdf

Walker, B., & Salt, D. (2004). Resilience thinking: Sustaining ecosystems and people in a changing world. Island Press.

Wieczorek-kosmala, M. (2021). COVID-19 impact on the hospitality industry: Exploratory study of financial-slack-driven risk preparedness. International Journal of Hospitality Management, 94, 102799.

Williams, T. A., Gruber, D. A., Sutcliffe, K. M., Shepherd, D. A., & Zhao, E. Y. (2017). Organizational response to adversity: Fusing crisis 191 management and resilience research streams. Academy of Management Annals, 11(2), 733-769.

Woodrow, L. (2015). Researching motivation. Research Methods in Applied Linguistics: A Practical Guide, 403-420.

Zhang, Y. W., Choi, J. G., & Akhmedov, A. R. (2021). The impacts of perceived risks on information search and risk reduction strategies: A study of the hotel industry during the COVID-19 pandemic. Sustainability, 13(21), 12221.

Downloads

Published

2024-12-30

How to Cite

Cabaguing, J. M. ., Cabatingan, A. Y. ., & Delantar, A. F. A. . (2024). Crises Readiness and Response Strategies in Times of Disruptions in The Hotel Industry: A Strategic Resilience Framework. Creative Business and Sustainability Journal, 46(2), 62–82. https://doi.org/10.58837/CHULA.CBSJ.46.2.4

Issue

Section

Research Articles