How does demand uncertainty affect food and beverage capacity in the hotel industry?. Issue 13 (9th November 2016)

• Record Type: Journal Article
• Authors: Chen, Chiang-Ming; Chiu, Hsien-Hung; Hsu, Chien-Lung
• Is Part Of: Current issues in tourism. Volume 19:Issue 13(2016)
• Page Start: 1288
• Page End: 1294
• Publication Date: 2016-11-09
• Subjects: demand uncertainty -- food and beverage -- capacity; Tourism -- Social aspects -- Periodicals; Tourism -- Environmental aspects -- Periodicals; Travel -- Periodicals; 338.479105
• DOI: 10.1080/13683500.2015.1087478
• Languages: English
• ISSNs: 1368-3500

Abstract

Abstract : This study investigates the effect of demand uncertainty on hotels' food and beverage (F&B) capacity using the operation data of international tourist hotels in Taiwan. The empirical results of this study show that demand uncertainty leads to an increase in F&B capacity. Moreover, the magnitude of this effect increasingly strengthens for hotels with larger F&B scales. Our results together with other studies on room capacity collectively indicate that hotels' overcapacity problem resulting from demand uncertainty considerably varies with hotel scales and between different hotel sectors.