Antecedents Influencing the Performance of Hotel Businesses in Thailand

Abstract

The tourism and hospitality industry serves as an essential economic driver in Thailand, representing a crucial source of national income. The COVID-19 pandemic caused a significant downturn in economic activities and resulted in considerable changes in consumer behavior—external factors that are outside the control of individual businesses but have far-reaching effects on the sustainability of tourism ventures. This study aims to: (1) examine the levels of customer relationship management capability, market orientation, innovativeness, organizational agility, and organizational performance within Thailand's hotel sector; (2) analyze how these capabilities influence hotel business performance; and (3) develop a performance model relevant to the hotel industry in Thailand. A mixed-methods approach was adopted. The quantitative component included a sample of 360 hotel executives or owners connected with the Thai Hotels Association, chosen through a multi-stage sampling method. The sample size was determined using a ratio of 20 cases for each variable observed. Data were collected through a questionnaire and later analyzed using structural equation modeling. The qualitative component involved in-depth interviews with 20 key informants, which comprised hotel entrepreneurs, association board members, presidents of regional associations, and honorary advisors. The results revealed that: (1) all five constructs—customer relationship management capability, market orientation, innovativeness, organizational agility, and organizational performance—were rated highly; (2) each of the first four constructs had a statistically significant effect on hotel performance at the 0.05 significance level; and (3) the resulting model, termed the “2OCMI Model,” includes Customer Relationship Management Capability (C), Market Orientation (M), Innovativeness (I), Organizational Agility (O), and Organizational Performance (O). Qualitative findings further emphasized the importance of digital transformation to improve hotel performance. This includes incorporating advanced digital technologies to enhance service efficiency, utilizing artificial intelligence for customer interaction, and aligning services with consumer needs and global standards. Additionally, enhancing staff skills in information and communication technologies was deemed vital. The study provides practical recommendations for policy development aimed at improving the performance of hotel businesses in Thailand.