Value chain management during crisis period: A study in all-inclusive hotels

This study examines the crisis perception of managers in the lodging industry, the effects of crisis periods on hotel operations, and management strategies during crisis periods. The data used in the research were collected through focus group discussions and one-on-one in-depth interviews conducted with general managers of 5-star hotels in the Alanya region, and analyzed using qualitative research methods. The study is conducted in three main headings: 1) crisis perception of management; 2) preparation and management strategies during crises; and 3) effects of crises on the value chain in lodging firms. To determine the crisis perception of hotel managers we conducted a series of intervies and collected experiences during crisis periods, crisis indicators, and measures of scale. Gathering the future crisis predictions by hotel managers we investigates the relationship between crises perception and future crisis expectations. The prominent crisis indicators identified in our study included a decrease in demand, loss of income, decrease in guest satisfaction, difficulty in paying staff wages, local and/or global events threatening security, and sudden increases in good and services used. Our research revealed that managers use criteria such as loss of profitability, time to recover losses, and asset-loss ratio in interpreting the magnitude of crises. Based on past experiences and crisis perceptions, political, energy, employment, climate, and economic themes were prominent in future crisis expectations by hotel managers. In the second part of the research, the preparation and management strategies of managers for crises were examined. Methods employed to increase resilience against crises ahead of crisis periods included enhancing quality of service, increasing operational efficiency, differentiation, investing in human resources, establishing a strong capital structure, diversifying markets, strengthening collection channels, and examining scenario simulations. During crisis periods, cost-saving, leadership attitude, price reduction, seeking credit, and long-term planning attitudes were observed to be prominent in management practices. The long-term enduring effects of crises on establishments were found to include a decrease in quality, an increase in guest dissatisfaction, financial weakening, difficulty in accessing human resources, and continued pressure on prices. However, it was emphasized that establishments that successfully navigate crises emerge stronger with these experiences. In the third part of the research, the effects of crisis periods on lodging value chain were examined. Within the primary activities of the value chain, disruptions in the supply chain, cost increases, and inventory management difficulties were observed in internal logistics activities; decreases in staff productivity, service quality issues, and health/safety measures were observed in operations; changes in guest experience and reservation management difficulties were observed in external logistics activities; decreased demand, market fluctuations, and changes in guest preferences were observed in marketing and sales; flexible cancellation/change policies, guest complaints, and requests for extra services were highlighted in services. In supportive activities of the value chain, the critical importance of establishing a strong financial structure, energy management and efficiency, and long-term planning during crisis periods was emphasized in managerial infrastructure. In human resources activities, changes in employment and employee motivations were prominent findings. In technology development activities, the importance of digital adaptation and innovations along with operational efficiency tools during crisis periods was revealed. Finally, in procurement activities, the critical role of supplier management and purchasing strategies in the face of crises was identified.