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Demand-wise Coach Services for Hotel Industry: A Structured Approach to Outsourcing and Sharing Decisions
Date Issued
2016
ISBN
978 0 9943656 37
ISSN
2205-6033
Citation
Asia Pacific Journal of Advanced Business and Social Studies, 2016,vol 2(2), pp. 380-391
Type
Peer Reviewed Journal Article
Abstract
Purpose ‐ Hotel industry in Hong Kong is under keen competition and is facing
fluctuating demand. Some hotel services which are conventionally provided in-house are
under pressure of cost reduction. This paper investigates coach services of hotel industry.
What is the background underlying the emergence and potential growth of demand-wise
coach services for hotel industry? Would demand-wise hotel coach services be feasible?
This paper intends to answer these questions.
Design/methodology/approach ‐ A hotel coach service network in Hong Kong was
analysed. A new network with shared coach services is proposed and it can be
restructured to simulate sharing of hotel coach passenger capacity among a group of
hotels, or to assign a fixed number of coaches to more hotels. A demand-wise coach
services provision decision diagram is developed.
Findings ‐To determine an optimal coach services provision, it is necessary to integrate
all the three types of provision strategy: outsourcing to third parties, providing the
services in-house and sharing of coaches with other hotels.
Research limitations – On-site traffic data surveys should be carried out to confirm the
simplified scenario analysis. The study only considered the trips among hotels in the
urban area of Hong Kong.
Originality/value ‐Given the vehicle size and frequency of service, the traffic impact of
hotel coaches on the city transport system is significant. The results of the study can be
valuable references to hotel managers and transport policy makers in Hong Kong and
other countries.
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