The Signalling Theory: The Key Role of Quality Standards in the Hotels Performance

ABSTRACT

The application of the Signalling Theory to the case of the tourism standards of quality are established. An empirical research study on the performance of a wide range of hotels that have evolved from not possessing certification to being accredited by some form of quality standard (regional, national or international) during a period of seven years. The results provide evidence on the usefulness of quality certifications as signals to the market to achieve increases in sales, gains in market share, increased occupancy and average room price, and therefore an improvement in profitability per room and overall profit for the hotels.

KEYWORDS:

• Signalling theory
• quality standards
• ISO
• hotel performance

Notes

1. Initially the year had been considered as a random covariate and the number of stars of the accommodation as a covariate, however the model has worked substantially better with the number of tourists per year.