XXI. MEZINÁRODNÍ KOLOKVIUM O REGIONÁLNÍCH VĚDÁCH. SBORNÍK
PŘÍSPĚVKŮ.
21ST
INTERNATIONAL COLLOQUIUM ON REGIONAL SCIENCES.
CONFERENCE PROCEEDINGS.
Place: Kurdějov (Czech Republic)
June 13-15, 2018
Publisher: Masarykova univerzita, Brno
Edited by:
Viktorie KLÍMOVÁ
Vladimír ŽÍTEK
(Masarykova univerzita / Masaryk University, Czech Republic)
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AUTOR, A. Název článku. In Klímová, V., Žítek, V. (eds.) XXI. mezinárodní kolokvium
o regionálních vědách. Sborník příspěvků. Brno: Masarykova univerzita, 2018. s. 1–5.
ISBN 978-80-210-8969-3.
AUTHOR, A. Title of paper. In Klímová, V., Žítek, V. (eds.) 21st
International Colloquium
on Regional Sciences. Conference Proceedings. Brno: Masarykova univerzita, 2018. pp. 1–
5. ISBN 978-80-210-8969-3.
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content and originality of the articles.
© 2018 Masarykova univerzita
ISBN 978-80-210-8969-3
ISBN 978-80-210-8970-9 (online : pdf)
Sborník příspěvků XXI. mezinárodní kolokvium o regionálních vědách Kurdějov 13.–15. 6. 2018
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DOI: 10.5817/CZ.MUNI.P210-8970-2018-82
SELECTED MODERN APPROACHES TO HOTEL
MANAGEMENT
Vybrané moderné prístupy k manažmentu hotelov
ANDREJ MALACHOVSKÝ1
ĽUDMILA MAZÚCHOVÁ2
1
Katedra cestovného ruchu a spoločného stravovania
Ekonomická fakulta
Univerzita Mateja Bela v Banskej Bystrici
1
Department of tourism and hospitality
Faculty of Economics
Matej Bel University in Banská Bystrica
 Tajovského 10, 975 90 Banská Bystrica, Slovak Republic
E-mail: andrej.malachovsky@umb.sk
2
Katedra cestovného ruchu
Fakulta stredoeurópskych štúdií
Univerzita Konštantína Filozofa v Nitre
2
Department of Tourism
Faculty of Central European Studies
Constantine the Philosopher University in Nitra
 Dražovská 4, 949 74 Nitra, Slovak Republic
E-mail: lmazuchova@ukf.sk
Annotation
Selected modern approaches for hotel industry, are opening the chances to accelerate development and increase
competitiveness. Therefore, it is necessary to carry out the management theory and management practices of large
enterprises in practice SMEs and large number of various methods that enable them to effectively achieve strategic
objectives. Most of these methods was founded on the principles of strategic and process management, and today
is actively used in successful companies of different industries. The paper is focused on the use of selected modern
management approaches in Slovak hotel industry. This paper aims to identify the level of utilization management
methods in hotels in Slovakia and confront it with the current level of use in other companies in Slovakia and
abroad. In evaluating the use of 14 modern management methods we used mathematical and statistical methods,
including mean values and standard deviation. The result of the research is identifying weaknesses in the use of
various methods of management and design of their efficient use in the Slovak hotel industry. There are partial
differences between knowledge and the use of key modern approaches to hotel management such as controlling,
benchmarking, strategic planning, Essential shortcomings are in knowing and using more than half of the methods
under review.
Key words
hotel, management approaches, strategy
Anotace
Osvedčené postupy v oblasti cestovného ruchu a hotelového priemyslu otvárajú šance na urýchlenie rozvoja a
zvyšovanie konkurencieschopnosti. Preto je potrebné vykonávať teóriu riadenia a postupy riadenia veľkých
podnikov v praxi malých a stredne veľkých podnikov a aplikovať veľký počet rôznych metód, ktoré im umožňujú
efektívne dosiahnuť strategické ciele. Väčšina týchto metód bola založená na princípoch strategického a
procesného riadenia a dnes sa aktívne využíva v úspešných spoločnostiach rôznych priemyselných odvetví.
Príspevok je zameraný na používanie moderných metód riadenia v slovenských hoteloch. Cieľom príspevku je
určiť úroveň metód riadenia využitia v hoteloch na Slovensku a porovnať ho so súčasnou úrovňou využitia v iných
spoločnostiach na Slovensku aj v zahraničí. Pri hodnotení využívania 14 moderných metód riadenia sme použili
matematické a štatistické metódy vrátane stredných hodnôt a štandardnej odchýlky. Výsledkom výskumu je
identifikácia slabých stránok v používaní rôznych metód riadenia a navrhovania ich efektívneho využitia
v slovenskom hotelierstve. Existujú čiastkové rozdiely medzi poznaním a využitím kľúčových moderných prístupov
k manažmentu hotelov ako sú kontroling, benchmarking, strategické plánovanie ap. Zásadné nedostatky sú
v poznaní a využití viac ako polovice skúmaných metód.
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Klíčová slova
hotel, prístupy v manažmente, stratégia
JEL classification: M16, Z32
1. Introduction
Hotels play an important role in the tourism system and they are a prerequisite for the development of tourism. At
the destination, they form the prerequisites for the efficient operation of other types of tourism equipment by
focusing on the purchasing demand of visitors and being the center of social life (Patúš, 2005). In addition to the
provision of basic accommodation and catering services, the primary needs of visitors are increasingly met. The
management method is a set of predefined activities and procedures designed to help managers in different areas
of their business achieve predetermined goals. Changing business environment and the development of modern
management also introduce new management methods. Their importance in management is undeniable because
they implement modern trends and new discoveries in theory and practice of management into day-to-day
management activities. Transnational educational institution Bain & Company from 1993 regularly deals with
monitoring frequency, evolutionary development and use of preference of management methods worldwide. Every
year analyzes surveys in more than 12,000 businesses from over 70 countries worldwide. The most used
management methods in the world today include strategic planning, customer relationship management, internal
relationship management, benchmarking, balanced scorecard, key competencies, outsourcing, change
management, supplier relationship management, establishing a vision and plan. The ranking of individual methods
has changed recently, but many have been the most commonly used management methods in the last decade.
The aim of the state is to identify the current state of knowledge and use of management methods in hotels in
Slovakia and confront the results with the use of management methods in enterprises of other economic sectors at
home and in selected countries. Data on the use and knowledge of management methods in hotels in Slovakia was
obtained through a primary survey based on a questionnaire survey. We made the survey electronically at the end
of the second half of 2014. Link to the electronic form, we sent to 30 pre-selected hotels in Slovakia. From 30 sent
questionnaires we returned 23, of which one was not assigned to the processing due to incomplete filling. Total
return was 73.3 %, which is motivated by a targeted selection of hotels. Due to the number of respondents, the
survey results can´t be generalized. The collected data were processed by mathematical and statistical methods at
a significance level of α = 0.05, with 95 % reliability. We compare our results with four surveys in our country
and in surrounding countries, which were focused on the use of management methods and implemented in recent
period. The criterion for selecting the hotels surveyed was the length of hotel managers' experience, which had to
go beyond 5 years in managing positions.
2. Selected modern management approaches – current state
Strategic Planning. Strategic planning is an important tool for business executives. It is not a completely new
management method, since its development dates back to the 1950s. This management tool implements a welldefined
enterprise strategy into key business goals. Explicitly connects all business goals with daily management
and transform goals into predetermined steps needed to achieve them (Nolan, 2008). Strategic planning is then
repeating process of creating a strategic plan, identifying key factors for achieving them, identifying possible
alternatives development, creating of corporate structure, decision-making processes, information system, system
of controlling and re-evaluation of results in relation to predetermined objectives of the strategy (Collis a Rukstad,
2008). Strategic planning in the current business environment helps the company identify early changes to the
external business environment and adapt to it the necessary measures in the future direction and corporate
governance. It is a tool to managers learn how to respond to constantly changing conditions and impacts of
environmental business (Fogg, 2010).
Customer Relationship Management. The most commonly method of value management include Customer Value
Analysis (CVA), Customer Value Management (CVM) and Customer Relationship Management (CRM). These
three value management methods are closely related to each other and are often part of a management tool called
Customer Relationship Management. By purchasing products, each consumer exchanges certain values for other
values that bring him additional benefits. This benefit is determined by the relationship of product or service
quality and the price that the consumer is willing to pay for this product or service. Customer value can be defined
as current and expected future values of a particular customer discounted to net present value (Vlček, 2002). The
basis of this analysis is to evaluate the economic efficiency of business cooperation with individual customers
based on profitability indicators. However, current profitability is only one component of the customer's actual
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value for the enterprise. Even a customer whose current return is low represents potential for the business in the
future, and the spread of goodwill can be part of the business marketing plan (Kim, 2012).The basis of this
management practice is to understand the needs and desires of its customers and at the same time satisfy them
adequately. In order for an enterprise to understand its customers, it is essential to collect and properly process
relevant data. Based on these, an enterprise can create sales strategies for its products, segment customers into
different groups according to predefined criteria and use this information to develop strategy, product innovations
and internal processes, plan future earnings, create a training program for employees, price formation, design of
product distribution channels for individual segments, create loyalty programs etc. (Peppers, 2011, Sarmaniotis,
2013).
Internal Relationship Management. Internal relationship management represents a tool for measuring satisfaction
and meeting the individual needs of employees, working groups and departments of enterprise. This management
method is a response to several studies (Jensen, 2007, Medlin, 2009 and other) that confirmed a direct dependence
between mentally and emotionally recruited employees with enterprise and the number of loyal customers and
business performance. This tool helps to identify the personal realization of employees in specific positions, their
relationship and links with other employees of the enterprise across the entire organizational structure (Borg,
2008). The goal of this tool is to reduce employee turnover, identify the right job positions for the right employees,
create compact working groups and create an appropriate work environment for employees.
Balanced Scorecard. When managing an enterprise, management has available a number of data and information.
Their mathematical quantification and combination gives rise to a number of indicators that are possible and in
many cases also needed to be continually used. However, correct use and importance of these indicators is often
also a problem for management staff. The amount and diversity of business performance indicators was also
investigated at Harvard Business School in the late 1990s, which led to the development of a modern management
method called Balanced Scorecard (Lawrie, 2004). Its aim is to reduce the information burden on managers and
emphasis on key financial and non-financial indicators that are crucial to the fulfillment of corporate strategy
(Creamer, 2010). The method Balanced Scorecard (further than BSC) transforms mission and strategy into a
comprehensive set of performance indicators that provide a return framework for assessing management and
business strategy (Kaplan, Norton, 2001). An advantage of BSC is its universal applicability suitable for a wide
range of business applications. It is part of an information system that is available to all employees at different
business levels (Laitinen, 2006). BSC uses four basic perspectives to measure enterprise performance: financial,
customer, corporate internal processes perspective and perspective of learning and growth outlook, utilizing their
causal relationships. All BSC perspectives must be balanced with each other as the name itself suggests. The
essential feature of this method is that it does not attach importance and more importance to any of the four
perspectives. Authors point to the fact that all performance measurement indicators must be equivalent and also
affect the achievement of the enterprise strategy, while the Balanced Scorecard quality and its usefulness do not
depend on the number of indicators used, such as the balanced identification of key success factors that drive
business performance (Kaplan, Norton, 2005).
Six Sigma. Among modern management methods include the perfectionist tool called Six Sigma. This
management method uses proven quality management tools with an emphasis on professional project management
(Bisgaard, 2004). Its base is mainly in statistical and mathematical techniques and Six Sigma aim is to create a
nearly flawless products or provide impeccable services, results of which are reflected in the improvement of
financial indicators of enterprise and increase its market value (Töpfer, 2008, 37).
Benchmarking. Benchmarking is one of the management methods that have been in common practice for a long
time. His popularity in practice explains the simplicity, which is one of the principles of this instrument. Learning
from more experienced, smarter and older is rooted in society for a long time. In this case, it exactly describes the
basic principles of this management tool. Its aim is to increase business performance by identifying, exploring and
applying best practices to individual business processes (Jetmarová, 2011). Leaders can compare processes and
performances externally with surrounding businesses or domestic within comparable business segments. The basic
benchmarking process consists of following steps:
Key Competencies. Management method, which aim is to highlight the main business benefits for customer, which
is almost impossible to duplicate from competitors (Šebová, Marčeková, Pompurová, 2017). We can also freely
translate it as a key business capability. This emphasis on business strengths today is a conceptually integrated
business management method, the essence of which is to identify and isolate key strengths of business and
compare them with competitors.
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Reengineering Business Processes. It represents a radical change in business process system in order to achieve a
significant increase in productivity, quality and in shortening the length of production process or provision of
services. The aim of this change is to increase the end value for customer and his satisfaction as a prerequisite for
increasing productivity and performance of business. The new value system and business processes must be
oriented to the main customer needs and satisfying them. New processes are designed to eliminate unproductive
activities and create a new effective organizational structure and information system in enterprise (Hammer, 2003).
Outsourcing. Outsourcing is a popular and used management method. Its essence is the use of external suppliers
to ensure processes and activities that are not the main business activities and creator of value. Evald (2012) lists
three basic approaches to outsourcing – cost approach, competency approach and relationship approach.
Supplier Relationship Management. Use of this management method aim is to synchronize all factors involved in
the process of producing goods or providing services – suppliers, manufacturers, distributors, dealers and
customers themselves, with an emphasis on timely, complete and effective satisfaction of their needs. This
approach is based on a sophisticated information system that ensures a close relationship between input factors
and makes the value chain of goods or services more efficient (Frazelle, 2001). Ayers (2006, p. 16) emphasizes
that the synergy of this close relationship is provision of services or sale of goods to a targeted customer "at the
right time, at the right place and at the right cost". The result is effective satisfaction of customer needs, increase
loyalty and mediate satisfaction of needs and intensify the relationship between provider and end-all parties
involved in the production chain. This management method was a response to changing business environment,
intensity of communication, use of new management methods of supply (e. g. Just-in-Time Method), data storage
and utilization, overall consolidation and tendency to association and build strategic partnerships (Trent, 2007).
Fisher (2010, p. 106) emphasizes the importance of suppliers and argues that their proper choice and negotiation
on input prices are nowadays a key factor for business performance.
Controlling as a Management Tool. Controlling is currently a relatively well-used management tool. Its detail and
elaboration is at such a level that various mathematical and statistical methods are used for control indicators.
Each area in which controlling of the company is devoted can be elaborated and analyzed in a very detailed manner
and based on various indicators. Foltínová a Kalafutová (1998, p. 9) define controlling as "a system whose purpose
is to improve management of an enterprise on the basis of objective evidence and evaluation of all economic
events in enterprise". When we summarize importance of controlling in enterprise, we find that it is an economic
expression of economic processes and their optimization, which they use to support management of the enterprise
value-building process. This is an in-house management of costs and revenues, while controlling is organizational
delegated management subsystem consisting of planning processes, forecasting and control, which are coordinated
and information interconnected.
3. Results and Discussion
At the beginning of primary survey, we investigated the extent to which hotel managers are aware of modern
management methods. To individual management methods, we've assigned a scale from 1 – I do not know to 5 –
I know very well. Based on the processed results (table 1), we can assert that respondents best known management
methods of controlling and strategic planning, followed by customer relationship management, benchmarking,
outsourcing, supplier relationship management and social media.
Tab. 1: Knowledge of Management Methods
Rank Management Method Count Average Standard Deviation
1 Controlling 22 4.09 0.92
1 Strategic Planning 22 3.91 0.87
3 Customer Relationship Management 22 3.73 0.77
3 Benchmarking 22 3.82 0.85
3 Outsourcing 22 3.95 1.00
3 Supplier Relationship Management 22 3.95 1.00
3 Social Media 22 3.77 1.07
3 Internal Relationship Management 22 3.27 0.88
9 Comprehensive Quality Management (TQM) 22 2.77 1.41
9 Key Competencies 22 2.73 1.20
9 Model of Excellence (EFQM) 22 2.32 1.49
12 Activity Based Costing 22 2.23 1.19
13 Balanced Scorecard 22 1.95 0.95
14 Six Sigma 22 1.50 0.80
Source: Own processing, 2014.
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Management methods as six sigma, balanced scorecard and ABC method managers do not know almost at all, the
EFQM and TQM methods are placed in the middle with the highest standard deviation, which means that some
managers know this method very well and others do not know it at all.
We examined the intensity of use of the identical management methods. Use management methods were
evaluated as follows: daily – 7, weekly – 6, monthly – 5, quarterly – 4, yearly
– 3, once every three years – 2, never – 1. Based on responses by using Friedman and Wilcoxon test among the
most widely used management methods are customer relationship management, social media, internal relationship
management, outsourcing, controlling and benchmarking. In none of monitored hotel is not used any of methods
TQM, EFQM, ABC, balanced scorecard and six sigma (table 2).
Managers of monitored hotels use customer relationship management, social media and internal relationship
management mostly weekly. Benchmarking, outsourcing, and controlling use mostly monthly. Supplier
relationship management, strategic planning and key competencies are used on average once a year. Based on the
value-order ranking of use of management methods, we can´t claim that any of methods are used more popular
than others.
Tab. 2: Use of Management Methods
Rank Management Method Median Standard Deviation
1 Customer Relationship Management 5.77 1.57
2 Social Media 5.46 1.68
2 Internal Relationship Management 5.59 1.50
4 Outsourcing 5.14 1.52
5 Controlling 4.96 1.89
5 Benchmarking 4.55 1.71
5 Supplier Relationship Management 4.41 1.79
8 Strategic Planning 3.64 1.47
9 Key Competencies 2.36 1.71
10 Comprehensive Quality Management (TQM) 1.00 0.00
10 Balanced Scorecard 1.00 0.00
10 Six Sigma 1.00 0.00
10 Activity Based Costing 1.00 0.00
10 Model of Excellence (EFQM) 1.00 0.00
Source: Own processing, 2014.
Based on characteristics of management methods, we have compiled answer scaling key to the second question
in questionnaire so that we can determine how many hotels from monitored respondents use or do not use selected
management methods. The minimum using frequency of management method is shown in table 3. If a hotel uses
the method less often than a specified minimum usage rate, we consider the method to be unused.
Tab. 3: Minimum Usage Intensity of Management Methods
Rank Management Method Minimum Usage Intensity
1 Customer Relationship Management Monthly
2 Social Media Weekly
3 Internal Relationship Management Monthly
4 Outsourcing Monthly
5 Controlling Monthly
6 Benchmarking Monthly
7 Supplier Relationship Management Monthly
8 Strategic Planning Yearly
9 Key Competencies Yearly
10 Comprehensive Quality Management (TQM) Monthly
11 Balanced Scorecard Monthly
12 Six Sigma Monthly
13 Activity Based Costing Monthly
14 Model of Excellence (EFQM) Monthly
Source: Own processing, 2014.
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Based on responses scaling, we can claim that the most used management methods in monitored hotels include
customer relationship management and strategic planning, which is used by 86% of surveyed hotels. Following is
the internal relationship management, controlling, outsourcing, benchmarking, social media and supplier
relationship management (table 4).
Tab. 4: Use of Management Methods
Rank Management Method
Use Do not use
Count Share in % Count Share in %
1 Customer Relationship Management 19 86 3 14
1 Strategic Planning 19 86 3 14
2 Internal Relationship Management 18 82 4 18
3 Controlling 17 77 5 23
4 Outsourcing 16 73 6 27
4 Benchmarking 16 73 6 27
5 Social Media 15 68 7 32
6 Supplier Relationship Management 14 64 8 36
7 Key Competencies 10 45 12 55
8 Comprehensive Quality Management (TQM) 0 0 22 100
8 Balanced Scorecard 0 0 22 100
8 Six Sigma 0 0 22 100
8 Activity Based Costing 0 0 22 100
8 Model of Excellence (EFQM) 0 0 22 100
Source: Own processing, 2014.
In case of monitored hotels, we did not recognize use of quality management methods TQM and EFQM.
Respondents do not use the methods of strategic management - balanced scorecard and six sigma or the ABC
method (Activity Based Costing).
Durkáčová (2012) applied selected management methods in survey of manufacturing enterprises in Slovakia.
Based on 110 completed questionnaires from enterprises operating in our country, with a turnover of more than 5
million euro, indicates the order of their use (table 5).
Tab. 5: Use of Management methods abroad and in Slovakia in 2010
Rank Abroad In Slovakia
1 Benchmarking Strategic Planning
2 Strategic Planning Customer Analyzes
3 Determining Vision and Plan Customer Relationship Management
4 Customer Relationship Management Support of Internal Innovations
5 Outsourcing Customer Incentives for Innovation
6 Balanced Scorecard Price Optimization Models
7 Key Competencies Focusing on Key Areas
8 Change Management Customer Segmentation
9 Strategic Alliances Tools for Maintaining Loyalty
10 Customer Segmentation Crisis Planning
Source: Durkáčová, Kádárová, 2012, p. 38.
Compared to the global trend, Slovakia is lagging behind using management methods as balanced scorecard,
benchmarking and strategic alliances. In Slovakia is similarly applied the management method of strategic
planning and customer relationship management. Somewhat more emphasis is placed by Slovak businesses on
their key competencies and customer segmentation.
Šiška and Matýsek (2007) conducted a survey in the Czech Republic in 2007 on a selected sample of 291
enterprises. The aim of their survey was to find out what methods and systems the Czech companies use to measure
their performance. Based on results, they found out that enterprises in the Czech Republic are mainly using the
oldest type of full-cost management accounting, combined with principles of control. Higher interest reached in
methods of quality management, TQM, constraint theory, balanced scorecard, revenue management and
reengineering business processes.
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Pawliczek (2013), in results of the survey of using modern management methods in 722 manufacturing companies
in the Czech Republic and Slovakia, indicates that the most widely used management methods of present are
SWOT analysis, which use 54.2 % of total number of respondents, the TQM method (22.4 % ), SMART (20.6
%), kaizen (16.8 %), six sigma (16.8 %), key performance indicators (14.0 %), lean (10.3 %) and the balanced
scorecard method used by 7.5 % of respondents.
The reason for the use of traditional or less complicated management methods is in the hotel industry's traditional
focus on operational problems, not on strategic issues. Hotels are less demanding for sophisticated technical
analyzes than industrial enterprises. Yet large network hotels associated with international hotel companies use a
wide range of modern management methods. The reason for this is the significant difference in the capital invested
in such companies, which requires efficient management also in view of their presence on the stock exchange.
Small and medium-sized establishments are characterized by a lower rate of profitability and focus on short-term
goals. This is also due to a higher level of competition in this business segment. This is, of course, a paradox,
because modern management methods would help the higher prosperity of independent hotel businesses.
Conclusion
Based on results of primary research, we can claim that respondents from 22 hotels in Slovakia have the most
intensive use of method of strategic planning and customer relationship management. Relatively often is used the
method of internal relationship management and controlling. Examined hotels do not use the TQM, EFQM,
balanced scorecard, six sigma and ABC methods at all. These methods are relatively unknown among hotel
managers.
Compared to businesses in other sectors of the economy at home and in surrounding countries, hotels are lagging
behind in using quality management methods. This fact is surprising, as tourism enterprises should focus on quality
of services provided. The balanced scorecard and six sigma methods are not yet widely used in enterprises in other
sectors of the economy. Based on their popularity abroad, we believe that the intensity of use will have a growing
trend in Slovakia for hotels and other tourism businesses as well.
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