The selection model for horizontal alliances between hotels and airlines: an integrated application of NGT, fuzzy TOPSIS and MCGP methods

Abstract

Purpose The purpose of this paper is to evaluate the hotel selection problem of airlines for their hotel and airline alliance (HAA) to develop potential customers of airlines. This paper will propose a hybrid mathematics evaluation model to help airline to select an optimal hotel with both qualitative and quantitative criteria. Design/methodology/approach To solve the hotel selection problem of airlines for their HAA, this paper focuses on the implementation of the NGT, Fuzzy TOPSIS and MCGP models in the hotel selection process. Initially, the NGT was used to create HAA decision-making criteria based on the literature review and expert opinions, and it was found that scale and scope possibility, brand value, tourism attraction, operating cost and industrial conditions are the most important criteria. Later, the Fuzzy TOPSIS method was used to obtain the general normalized fuzzy preference and to compute the closeness coefficients of each alternative hotel with respect to each criterion. Third, five tangible constraints were incorporated into the Fuzzy TOPSIS-MCGP model to calculate the optimal hotel with LINGO software. Findings Airline managers can use the proposed model to form a clear view of how to choose the most suitable hotel to cooperate with to outperform their competitors. Having access to this information allows airline managers to take steps to perform better and improve the performance of the partnership, helping them to gain more confidence in their decision-making capabilities while reducing investment risks. Originality/value This is the first paper that has adopted Fuzzy TOPSIS-MCGP to select hotel for their HAA from the airline’s point of view. The major contributions of this study are as follows: an efficient and simple evaluation framework is proposed for handling vagueness and uncertainty in real-world hotel selection problems; the advancement of treating uncertainty in the MCDM process; the fuzzy TOPSIS-MCGP method is extended for such problems, taking into account tangible and intangible criteria; airline managers can now make decisions in choosing to select the best hotel for their HAA that meets the airline's business goals and passenger demands; hotel operators are flexible in selecting their airline partnership, thus creating greater profit for both parties.