Small accommodation business growth in rural areas: Effects on guest experience and financial performance. (January 2019)

• Record Type: Journal Article
• Authors: Ye, Shun; Xiao, Honggen; Zhou, Lingqiang
• Is Part Of: International journal of hospitality management. Volume 76(2018)Part A
• Page Start: 29
• Page End: 38
• Publication Date: 2019-01
• Subjects: Small accommodation business (SAB) -- Business size -- Guest experience -- Financial performance -- Hierarchical linear modelling; Hotel management -- Periodicals; Restaurant management -- Periodicals; Food service management -- Periodicals; Hôtels -- Gestion -- Périodiques; Restaurants -- Gestion -- Périodiques; Services alimentaires -- Gestion -- Périodiques; Food service management; Hotel management; Restaurant management; Periodicals; 647.94
• DOI: 10.1016/j.ijhm.2018.03.016
• Languages: English
• ISSNs: 0278-4319

Abstract

Highlights: Effects of SAB growth on guest experience and financial performance are examined. SAB size growth increases functional and emotional experience. SAB size growth deteriorates authentic experience. SAB size growth is conducive to financial performance. Abstract: Rural tourism development features growth of small accommodation businesses (SABs). The disparity between the applause that appreciates increased economic benefits from SAB development, and the criticism on its potential damage to rural tourism experience, makes it necessary to verify the exact consequences of SAB growth. Drawing on business growth theory, this study models, tests and compares the effects of SAB size on various guest experiences and financial performance in the context of a highly dynamic rural destination, the north of China's Zhejiang Province. Data was collected from 188 SABs and 873 guests, and analyzed through hierarchical linear modelling and multiple linear regression. The result points to a trade-off faced by entrepreneurs between enhancing guest experience and achieving economic goals as SAB size increases. Implications of the study for research and practice are also discussed.