Do five-star hotel managers know their customers’ priorities? An AHP-Prioritised scorecard study

Abstract

Purpose Regular surveys by the Malta Hotels & Restaurants Association indicate a substantial improvement in the financial performance of five-star hotels in Malta in recent years. Therefore, the purpose of this paper is to investigate if this positive performance is primarily due to customer centricity by management. Design/methodology/approach The assessment is based on the findings of a quantitative study that compared the results of a demand side (customer survey) with those of a supply side (management survey). In total, 24 decision-choice criteria were framed within the four perspectives (financial, customer, internal process and employee learning/growth) of the balanced scorecard. Actual and potential customers of five-star hotels and hotel managers were asked to rank the decision-choice criteria and the balanced scorecard perspectives. The multi-criteria decision analysis was carried out by means of the AHP. Findings The study showed that managers in the five-star hospitality sector in Malta are in harmony with customer expectations given the strong positive correlation between the results of the customer and management surveys. Research limitations/implications This research is limited to the island of Malta but can be easily replicated for other touristic destinations. Practical implications This study has implication for hospitality customers, hotel managers and policy makers to help them to identify weak areas of hotel performance and improve them. Originality/value The paper has developed a Prioritised scorecard, a new hybrid balanced scorecard and AHP. Targets are therefore prioritised, which allow a better allocation of scarce resources.