Do 5-star hotel managers know their customers’ priorities? An AHP-Prioritised scorecard study

Purpose: Regular surveys by the Malta Hotels & Restaurants Association (MHRA) indicate a substantial improvement in financial performance of 5-star hotels in Malta in recent years. Therefore, this study investigates 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). Twenty-four 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 5-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 5-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.