CENTER FOR HOSPITALITY RESEARCH White Paper JD Power/SITE Foundation Incentive Travel Survey 2016 by Stephani K. Robson, Ph.D; Rick Garlick, Ph.D.; Global Practice Lead, Travel and Hospitality, JD Power; and Kevin Hinton, Chief Excellence Officer, Society for Incentive Travel Excellence EXECUTIVE SUMMARY ncentive travel is a multi-billion dollar segment of the travel industry that continues to grow. This I white paper outlines the findings from the 2016 JD Power/SITE Foundation survey on incentive travel buyers and sellers, bringing particular focus to the considerations and concerns facing incentive travel professionals. Controlling program costs is a major focus as travel planners turn to less expensive destinations, accommodations and amenities while still seeking innovative and engaging experiences for participants. North American, Caribbean and European destinations are increasingly popular for incentive travel. Buyers and sellers of incentive travel services report growing concerns regarding economic volatility, regulatory changes that make travel more difficult for some populations, and safety issues such as local violence or terrorism. And while consolidation and disintermediation within the travel industry continue to influence planning decisions, incentive travel professionals maintain a largely optimistic outlook for growth in the near future. Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 1 ABOUT THE AUTHOR Stephani K. A. Robson, Ph.D., senior lecturer, worked for several years in restaurants and retail food operations in her native Canada before deciding to pursue a college degree in the field. She graduated from the School of Hotel Administration in 1988, and began her career as a foodservice designer with Cini-Little International and subsequently with Marrack Watts in Toronto, Ontario. As a professional foodservice designer, she has designed kitchen facilities for hotels, restaurants, airports, hospitals, universities and catering halls. She joined the school’s faculty in 1993, earned a Master of Science in human-environment relations in 1999, and in 2010 completed her PhD at Cornell with a focus on consumer behavior in hospitality settings. Her academic interests center on how the design of environments affect consumer intentions, satisfaction and behavior. She is a specialist in the psychology of hotels and restaurants and has presented and published her research in a wide range of industry and academic forums around the world. 2 Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 CORNELL HOSPITALITY REPORT White Paper JD Power/SITE Foundation Incentive Travel Survey 2016 by Stephani K. A. Robson, Ph.D. usinesses around the world use incentive travel to reward employees for a job well done and to B motivate them to excel. In the United States, roughly 40% of businesses acknowledge their employees and partners with incentive traveli, spending roughly $3.9 billion on such trips in 2015ii. While typically defined as a subset of business travel, incentive travel is often to world- class leisure or resort destinations, that have been expressly selected to feel like a reward rather than work for those employees eligible to participate. And incentive travel works: effective incentive travel programs have been demonstrated to increase productivity and teamwork, lower turnover rates, increase organizational loyalty, and boost worker moraleiii. In addition to recognizing workers, firms use incentive travel to reward their customers: firms responding to a survey by the Intellective Group indicated that they spent $3.1 billion on incentive travel for their customers in 2015iv. i Incentive Marketplace Estimate Research Study, July 2016. http://www.incentivefederation.org/wp-content/uploads/2016/07/Incentive-Marketplace-Estimate- Research-Study-2015-16-White-Paper.pdf ii Ibid. iii For examples of academic research in this area, see: Hastings, B., Kiely, J. & Watkins, T., 1988. Sales force motivation using travel incentives: Some empirical evidence. Journal of Personal Selling & Sales Management, 8(2), pp.43–51. Jeffrey, S.A., 2014. The motivational power of incentive travel: the participant’s perspective. Journal of Behavioral and Applied Management, 15(3), p.122- 127. Ricci, P.R. & Holland, S.M., 1992. Incentive travel: Recreation as a motivational medium. Tourism Management, 13(3), pp.288–296. Shinew, K.J. & Backman, S.J., 1995. Incentive travel: An attractive option. Tourism Management, 16(4), pp.285–293. iv Incentive Marketplace Estimate Research Study, July 2016, op. cit. Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 3 15% of buyer respondents were from other areas of the globe Given the importance and size of the incentive travel including Asia and Australia. industry, understanding the practices and perspectives of buyers and sellers of these services allows travel marketers to Sellers were a slightly more diverse group, with approximately better position themselves in a period of rapid and significant 40% from North America, 40% from EMEA, and 20% from the change. To that end, J.D. Power, in partnership with the SITE rest of the world. Respondents were predominantly destination Foundation, surveyed incentive travel professionals in the latter management companies and hoteliers (together representing 75% half of 2016 to uncover their perceptions, plans and concerns for of seller respondents) but also included convention and visitor the near future. This white paper summarizes the results of the bureaus, destination marketers, cruise lines, technology companies survey and highlights important findings related to the current (see Graph 1). The 2016 survey had a significantly higher response state of the incentive travel industry. from destination management firms than was the case in 2015. Survey Description Demographically, buyer and seller respondents were similar: about 60% female and in their mid-to-late forties on average. The 2016 SITE Index Benchmark Survey conducted by J.D. They were also seasoned veterans with long-standing knowledge Power and Associates had 599 respondents from 62 different and experience in the industry, averaging 18.1 years of experi- countries, an increase of roughly 50% over the number of ence for buyers and 17.8 years of experience for sellers. completed responses received in the 2015 survey. For the first time, the 2016 SITE survey was conducted in three languages: Signs of Growth in Incentive Travel Volume English, Spanish and Mandarin, broadening the survey’s reach and increasing the robustness of its findings over similar surveys Overall, the survey uncovered positive signs for growth in incentive conducted in prior years. Of the completed surveys, 167 (27.9%) travel. Sixty percent of buyers reported plans to increase the number came from buyers of incentive travel, 400 (66.8%) from sellers of individuals who are eligible for incentive travel (see Graph 2). of incentive travel services, and 32 (5%) identified as “additional Similar to 2015’s survey results, in 2016 just under half of interested parties” which included consultants, educators, and buyers (49%) report that they plan to increase travel incentive travel media. In order to distinguish the perspectives of incentive budgets to some degree. In contrast, fewer sellers (44%) think travel buyers from those of sellers, each group received survey that incentive travel budgets are increasing compared with 2015 questions tailored to their specific roles. (63%), and today’s sellers report receiving a median per person spend of only $1,500 in comparison to buyers’ reports of a Respondent Profiles median per person spend of $3,000. Corporate buyers reported Buyers were comprised of either third party suppliers who spending slightly more per person year-over-year ($3,100 in 2016 create incentive travel packages (71% of buyer respondents) or versus $3,000 in 2015) while third party incentive travel suppliers corporate users of incentive travel services (29%). Sixty percent indicated a 16% decline in per person spend ($3,000 in 2016 of buyer respondents were from North America, 25% were from versus $3,500 in 2015). Europe, the Middle East and Africa (EMEA), and the remaining Graph 1: Seller Respondents 4 Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 Graph 2: Buyers’ Anticipated Changes in Incentive Eligibility Applying Strategies to Control Costs The 78% of buyers that indicated that they were taking measures to control incentive travel program costs are planning shorter programs, choosing less expensive destinations, and selecting less expensive amenities among other strategies (see Graph 3). Corporate buyers were less likely to be looking to contain costs: 27% were not taking any cost-saving measures as compared with 19% of third party buyers. Third party suppliers were significantly more likely to reduce costs by cutting back on the duration of programs than were corporate buyers. Graph 3 Buyer actions to manage cost of incentive travel programs Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 5 In response to buyers’ needs for keeping costs in line, almost important from the seller perspective as well: sellers increased the all sellers reported that they are creating additional value by proportion of trips that always had meetings from 19% in 2015 working closely with clients to create more engaging experiences to 26% in 2016. through greater creativity and innovative event design (76%) or offering more for the same price (40%), including complimentary In planning incentive travel, buyers are paying greater goods and services, waived rental fees, or upgraded accommo- attention to the age of those who qualify for incentive travel (42% dations (see Graph 4). Sellers also rewarded loyal buyers with versus 35% in 2015) when designing programs to best meet the benefits such as rebates, volume discounts, and upgrades. needs of their participants. This is particularly the case for third party suppliers: 46% say they give “a great deal of consideration” Program Characteristics to qualifier age as opposed to 31% of corporate buyers. This may reflect third party suppliers’ needs for greater responsiveness Many characteristics of incentive travel programs remained to client requirements in order to remain competitive. similar to those identified in the 2015 survey. The typical length of stay is still about 4 days, with typically one day added for des- Finally, regarding destination choice, incentive travel tinations that require more than three hours of travel time. As continues to increase the most in North America, the Caribbean was the case in 2015, meetings during the stay are continuing to and Western Europe, with North America being the top choice grow in importance. Corporate users were more likely to incor- for both corporate users and third party suppliers (see Graph 5). porate meetings than third party suppliers, with 58% of corpo- However, third party suppliers are significantly decreasing their rate respondents stating that meetings were always part of their use of Western European destinations, with 19% responding that incentive travel programming. Meetings are becoming more they have moved away from travel to this region. Graph 4 Seller actions to add value for incentive travel buyers 6 Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 Graph 5 Buyers’ Destination Choice Note: Values highlighted in green boxes are significantly higher than 2015 results It’s important to note that in some parts of the world, there A substantial majority of both buyers (82%) and sellers is a preference to stay local for a variety of reasons, even though (80%) believe that incentive travel is a powerful motivator of a significant amount of the benefit of incentive travel programs positive performance. However, only about one quarter of buyers can stem from the global aspect of the travel opportunities. If reported that they routinely track the return on investment in a preference for close-to-home travel increases, the industry incentive travel in any formal way (see Graph 7). There are two will need to add greater value to domestic travel programs by keys reasons that firms do not perform any ROI analysis: either developing attractive travel incentives and staging memorable such analysis is not required in their organizations, or incentive events within the region to excite and motivate qualifiers. travel programs are simply accepted as being inherently valuable and thus are not seen as requiring confirmatory analysis. Program Effectiveness However, given the importance of ROI analysis to effective In line with prior academic research, an impressive 99% of decision making, a focus on tracking and measuring outcomes buyers surveyed believe that incentive travel programs are of incentive travel should become a priority for both buyers either somewhat or very effective. Buyers identified increasing and sellers of incentive travel services. Sellers could benefit profitability of the overall company, increased individual from developing ROI measurement tools to provide clients with productivity and improved employee engagement/morale as a higher level of service and increase their value proposition. their top three reasons for employing incentive travel programs Buyers likewise can benefit from having an objective approach to (see Graph 6). Third party suppliers ranked increased individual demonstrating the effectiveness of incentive travel programs in productivity higher than company profitability whereas corporate order to provide data-driven support for future budget decisions. users viewed these as equally important. Other that these minor Developing partnerships between sellers and buyers to develop differences, corporate users and third party suppliers are largely tools to measure and track incentive travel ROI may be a possible in agreement regarding the relative importance of positive avenue for collaboration. program outcomes. Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 7 Graph 6 Rank order of importance of outcomes associated with incentive travel programs (1 = most important and 8 = least important) GRAPH 7 Frequency of Return on Investment (ROI) Analysis of Incentive Travel 8 Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 External Influences on Incentive Travel concern for the majority (57%) of buyers. While most of these Programs and Planning external factors are beyond the direct control of buyers and sellers, there may be strategies that each can adopt to mitigate An important goal of the survey was to capture respondents’ negative effects while bolstering those factors that have the views about the impact of specific external factors on incentive potential to contribute positively. travel1. Some of these – notably sustainability and corporate social responsibility – are seen by many as likely to have a net The following sections examine each of these positive and positive effect on incentive travel (see Table 1). However, despite negative factors in more detail. a general feeling of optimism about the effectiveness and growth potential of incentive travel, the survey respondents indicated 1 It is important to note that the 2016 SITE Index Benchmark Survey notable unease regarding cost increases, political change, was conducted between August 11 and September 12, 2016. Respondents to terrorism and the possible effects of an unsettled economy (see the survey were reacting to known events and anticipated events that may differ notably from what has actually occurred since the survey closed. Table 2). Disintermediation within the travel industry is also of TABLE 1 Events with Most Positive Impact Note: Items with green boxes are significantly higher than 2015 results TABLE 2 Events with Most Negative Impact Note: Items with green boxes are significantly higher than 2015 results Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 9 Corporate Social Responsibility industry has negatively affected their companies. This view is held primarily by third party suppliers, 70% of whom think the Incorporating corporate social responsibility into travel programs increase in the number of corporate buyers who work directly continues to be important to both buyers and sellers and is with lodging and transportation firms to book incentive travel has viewed as having the most positive impact on incentive travel had a detrimental effect on their own organizations. Third party of all of the external factors noted in the survey. The majority suppliers need to better demonstrate to buyers the value they of respondents indicated that they currently include at least one provide, whether it is in saving buyers’ time and effort to plan and corporate social responsibility activity into their travel incentive execute incentive travel programs or in the strong relationships programs. About a third of both buyers and sellers report that third party suppliers have established with hotel, airline and specifically targeting corporate social responsibility efforts toward other travel companies that ensure the best possible experiences younger employees although the majority (70%) say they target for their corporate clients. such programs to all age groups equally. Integrating social engagement during incentive travel Political Upheaval may hold promise. Many luxury hotels already include social The past twelve months have seen enormous political change engagement in their programming. Four Seasons Hotels, for worldwide with little indication of stability in the near future. example, provides opportunities for meeting attendees to engage Beginning with Britain’s “Brexit” vote to leave the European in team building activities that help the local community (e.g., Union and continuing with a fractious American election, planting trees, preparing meals for the needy, helping at a local political uncertainty was significantly more important to hospital). Incentive travel planners should examine the potential respondents in 2016 when compared with the 2015 survey. of such activities to help strengthen the CSR activities of Forty percent of buyers and 50% of sellers thought that political corporate buyers. change would have either slight or notably negative effects on incentive travel. At the time of the survey, the outcome of the Increasing Role of Event Technology US election was unknown, and few could have predicted the While service providers of all types were seen as important to rapid rise of populism in the US and in parts of Europe. The incentive travel buyers, 83% of buyer respondents noted that recent UK and French elections returned relatively mainstream event technology suppliers – firms that design and create program governments to power in those countries, but there continues to events and experiences – are playing an increasingly important be a great deal of disruption in the US as a result of the election role in successful incentive travel programs. The demand for and its aftermath. memorable, engaging and unique experiences continues to grow Although there were grave concerns in the travel press as do the number and scope of firms competing for this business. about the negative impact that Britain’s exit from the EU could Over half (54%) of buyers surveyed said that they project having cause for the British meetings industry, in the year since “Brexit” increased buying power with event technology suppliers over the the industry has not been notably affected, possibly due to a next few years, while only 10% anticipate reducing their spending weakened pound which makes travel to Britain more affordable. on this sector in the foreseeable future. However, concerns about labor cost and availability are mounting as major infrastructure projects that could affect tourism have Industry Consolidation and Disintermediation the potential to be delayed if access to EU labor is curtailed. In the survey, buyers noted the continuing consolidation of Furthermore, a second Scottish independence referendum travel-related firms. Thirty percent of buyers saw destination sparked by the Brexit vote has currently been shelved but is likely management firms as the next travel sector likely to consolidate, to be revisited before 2020, which could affect demand in the following the airline and hotel sectors which have been leaders British travel market. in forming strategic partnerships or merging with competitors. There was less agreement among respondents regarding the Economic Uncertainty and Increasing Costs consolidation status of event technology firms, third party Given the political upheaval described above, it is not surprising suppliers, and specialty travel sectors such as cruises, but it is clear that economic concerns were also high on the list of potential that all of these sectors are seeing consolidation to some extent. impacts on incentive travel. Although 20% of buyers and 28% This consolidation suggests that it will be even more challenging of sellers had a somewhat positive outlook on the US economy, for smaller organizations to compete, particularly because larger a third of buyers and 44% of sellers thought the US economy organizations can dedicate more resources to creating a strong would negatively affect their incentive travel programs. For online presence that makes it easier for buyers to book directly sellers, this was a significant increase in negative sentiment over rather than go through a third party. 2015. The world economy was even more of a concern: 56% of Although online search and other digital tools have buyers and 67% of sellers had a negative view on the effect of broadened choices for incentive travel buyers, the majority world economic conditions, likely to stem from uncertainty over of buyers (57%) think that this disintermediation in the travel Brexit and the possible economic ripple effects worldwide. 10 Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 The biggest individual economic issue for survey A second major regulatory change introduced in early 2017 respondents continued to be airline costs, with over 70% of all was the restriction on the use of laptop computers and other respondents indicating that the cost to fly had a slight to strong large electronic devices on inbound aircraft from eight Middle negative impact on their programs. Gasoline prices were also Eastern nations. This ban was not initially directed at flights viewed negatively by about one third of buyers and sellers. from other nations, but if enacted, such a regulation could affect up to 65 million passengers and reduce business-related travel – Border Security including incentive travel -- across the globe. As an illustration of the possible fallout from this policy, a poll by Meetings and Existing border security policies were viewed negatively by some Conventions found that 69% of respondents would possibly or buyers and sellers although about half of those surveyed did definitely avoid traveling to meetings in locations affected by the not see this issue as a major concern. Similar proportions of banvi. As of July 2017, all airlines with flights into the United both groups (38% of buyers and 39% of sellers) felt that tighter States have agreed to comply with elevated screening and other border controls would have a slightly or strongly negative effect security measures, thus eliminating the need to wholly ban on incentive travel programs. However, two significant regulatory laptops and similar devices. But the fact that such a ban can and changes related to border security have occurred since the has been enforced raises the potential for regulatory measures survey was completed. The first is the Trump Administration’s such as this in the future with potentially significant effects on executive order restricting travel from seven dominantly Muslim inbound travel. nations (Iraq, Iran, Libya, Sudan, Somalia, Syria and Yemen), which was greeted with major protests and injunctions from the Other Regulatory Change courts when the policy was first announced in late January 2017. ForwardKeys, a travel data analysis consultancy, found that net Travel professionals of all types continue to monitor the travel bookings from these nations for the week immediately likely effects of further changes in US government policies following the executive order’s announcement had declined by and regulations, although buyers indicated that most of these 80% year over year. changes are unlikely to significantly affect their incentive travel programs. The majority of buyers (82%) responded that the The effects of this “travel ban” could spread well beyond Affordable Care Act (still in place at the time of the survey) inbound travel from affected nations. According to a poll by the would have no effect on RFP scopes of service, but 31% felt that Global Business Travel Associationv, roughly one third of US new pharmaceutical industry compliance laws would reduce business travel professionals expect some level of reduction in their opportunities. New regulations for financial transparency were company’s travel due to the executive order, and 17% of European viewed as detrimental by one fifth of respondents, positive by travel professionals reported that their companies had cancelled another fifth, and as neutral by the remaining 60% of buyers. business travel to the US on account of the ban. In the same poll, And the “AIG effect”, a response to strongly negative publicity 51% of respondents believed that there could be retaliatory policies incurred by the insurance giant for holding costly incentive travel from affected countries that will make travel for US nationals events shortly after receiving government funds, still lingers: more challenging, and 41% believed there will be increased threats roughly 30% of respondents believe there is still sufficient against US travelers abroad. 45% of European respondents said sensitivity to such spending that their incentive travel plans could their companies would be less willing to plan meetings in the US be affected. and 38% would be less willing to send business travelers to the country. It follows that incentive travel would be similarly curtailed Terrorism and International Conflict should the executive order be applied as written. At this writing, a revised version of the original travel ban is in effect but is being A growing number of buyers (78%) and sellers (61%) revealed challenged on a number of legal fronts. that they believe the threat of terrorism will have a strong, negative impact on incentive travel programs. This represents In a related vein, in early March 2017, the US government a marked increase over the results of the 2015 survey but is not initiated enhanced visa screening for citizens of many countries surprising given the terrorist attacks in France, Britain, Belgium including China, Mexico, and Brazil – all of which have been and elsewhere during 2015 and early 2016. Such concerns could important sources of tourism demand that could be greatly further increase given more recent incidents such as those in reduced if visa processing is not expedited. On another visa London, Manchester, and Las Vegas. In addition, drug-related front, citizens of some EU countries are not eligible for US visa violence in Mexico has notably reduced tourism activity in once- waivers while other EU citizens are, despite the fact that visa popular destinations like Acapulco. The survey did not explicitly reciprocity within the EU is a cornerstone of EU policy. In identify Mexico and Central America as destination options but response, the European Parliament voted in March to suspend rather included them in North America, making it difficult to visa waivers for US travelers to the EU but this policy has not yet been put into place. Discussions between the US and the EU are continuing but visa-free passage for all EU and US citizens has v Press Releases from the Global Business Travel Association: http://www.gbta.org/PressReleases/Pages/rls_020217.aspx; not yet been established. http://www.gbta.org/PressReleases/Pages/RLS_030817.aspx Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 11 determine what specific effect this violence is likely to have on Incentive travel professionals are concerned about a number incentive travel to these areas. But given the widespread concern of external factors that they feel could negatively affect their regarding terrorism, it might be expected that incentive travel programs in the next few years. At the top of the list were to areas recently suffering from violence from all sources will be issues like terrorism, increased air travel costs, and upheaval negatively affected. STR data suggest that the degree to which a due to increased political and economic volatility worldwide. market relies on discretionary travel, coupled with the availability Industry changes such as consolidation within travel sectors and of viable alternative destinations nearby, are the main drivers of disintermediation were likewise concerns, although corporate travel demand fall-off after a terrorism attackvii. buyers were less worried about the impact of these trends than third party suppliers. Since the 2016 survey was completed, increased tensions in the Middle East and in Asia have made travel to destinations For purchasers and suppliers of incentive travel programs, like Qatar or South Korea more of a concern for many. While the key takeaway from this survey is recognizing the need to offer specific hostilities are largely unpredictable, no doubt these engaging and innovative programs in a high-value, cost-effective conditions will continue to impact international travel demand. way in a climate of uncertainty and increasing competitiveness. n Summary vi M&C Research Survey, July 2017. Incentive travel buyers and sellers are largely optimistic about http://www.meetings-conventions.com/News/Research/Statistics- the growth and potential of incentive travel programs in 2017, poll-laptop-ban/ as most buyers say eligibility and budgets are increasing overall. They feel these programs have many demonstrable benefits and vii STR: London Hotel Market Demonstrates Resilience to Terror, July 2017. are positively influenced by trends such as sustainability and http://www.hotelnewsnow.com/Articles/148807/London-hotel- the use of event technology suppliers. Destinations in North market-demonstrates-resilience-to-terror America, the Caribbean, and Western Europe continue to be most popular with survey respondents (the majority of which were based in North America and Europe), although choosing closer destinations to reduce travel time is one of several approaches being deployed to keep program costs in check. 12 Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 Center for Hospitality Research Publication Index chr.cornell.edu 2017 Reports Vol. 17 No. 18 Hotel Sustainability Bench- Vol. 17  No. 4  What Matters Most to Your Vol. 16 No. 13 The Changing Relationship marking Index 2017: Energy, Water, and Guests: An Exploratory Study of Online between Supervisors and Subordinates: How Carbon, by Eric Ricaurte Reviews, by Jie J. Zhang, Ph.D., and Rohit Managing This Relationship Evolves over Verma, Ph.D. Time, by Michael Sturman, Ph.D. and Sang- Vol. 17 No. 17 Information in stock prices: hee Park, Ph.D. Buy the rumor, sell the news? By Pamela Vol. 17  No. 3  Hotel Brand Standards: How Moulton, Ph.D. to Pick the Right Amenities for Your Property, Vol. 16 No. 12 Environmental Implications of by Chekitan Dev, Ph.D., Rebecca Hamilton, Hotel Growth in China: Integrating Sustain- Vol. 17  No. 16  The Food-Service Indus- Ph.D., and Roland Rust, Ph.D. ability with Hotel Development, by Gert try: Best of Times, Worst of Times, by Alex Noordzy, Eric Ricaurte, Georgette James, and Susskind, Ph.D. Vol. 17  No. 2  When Rules Are Made to Be Meng Wu Broken: The Case of Sexual Harassment Law, Vol. 17  No. 15  How Co-Production and by David Sherwyn, J.D., Nicholas F. Menillo, Vol. 16 No. 11 The International Hotel Man- Authenticity Affect Experience Design Man- J.D., and Zev J. Eigen, J.D. agement Agreement: Origins, Evolution, and agement, by Lewis P. Carbone and Kathryn Status, by Michael Evanoff A. LaTour, Ph.D. Vol. 17  No. 1  The Future of Hotel Revenue Management, by Sheryl E. Kimes, Ph.D. 2017 Vol. 16 No. 10 Hotel Performance Impact of Vol. 17  No. 13  REIT Capital Structure: The CREF Cornell Hotel Indices Vol. 6  No. 2  Socially Engaging with Consumers, by Chris Value of Getting It Right, by Eva Steiner, Ph.D. Cornell Hotel Indices: First Quarter 2017: Anderson, Ph.D., and Saram Han Status Quo Maintained, by Crocker H. Liu, Vol. 17  No. 12  seniority_list: A Tool to Ph.D., Adam D. Nowak, Ph.D., and Robert Vol. 16 No. 9 Fitting Restaurant Service Style Address the Challenge of Airline Mergers M. White, Jr. to Brand Image for Greater Customer Satisfac- and Labor Integration, by Robert Davison tion, by Michael Giebelhausen, Ph.D., Evelyn and Sean E. Rogers, Ph.D., published by the Chan, and Nancy J. Sirianni, Ph.D. Cornell Institute for Hospitality Labor and 2017 CREF Cornell Hotel Employment Relations Indices Vol. 16 No. 8 Revenue Management in Restaurants: Unbundling Pricing for Reserva- Vol. 17  No. 11  The Billboard Effect: Still Third Quarter 2017: Bigger Is Not Better: Alive and Well, by Chris K. Anderson, Ph.D. Smaller Hotels Outperform Larger Hotels, tions from the Core Service, by Sheryl Kimes, Crocker H. Liu, Adam D. Nowak, and Robert Ph.D., and Jochen Wirtz, Ph.D. Vol. 17  No. 10  Ethics from the Bottom Up, M. White Jr. Vol. 16 No. 7 Instructions for the Food by Judi Brownell, Ph.D. Second Quarter 2017: Positive Momentum Preparation Scheduling Tool v2015, by Gary Thompson, Ph.D. Vol. 17  No. 9 Entrepreneurship Is Global: Continues: A New Price High Reached, Highlights from the 2016 Global Entrepre- Crocker H. Liu, Adam D. Nowak, and Robert Vol. 16 No. 6 Compendium 2016 neurship Roundtable, by Mona Anita K. M. White Jr. Olsen, Ph.D. Vol. 16 No. 5 Executive Insights on Leader First Quarter 2017: Status Quo Maintained, Integrity: The Credibility Challenge, by Tony Vol. 17  No. 8 Total Hotel Revenue Manage- Crocker H. Liu, Adam D. Nowak, and Robert Simons, Ph.D., with Kurt Schnaubelt, John ment: A Strategic Profit Perspective, by Breffni M. White Jr Longstreet, Michele Sarkisian, Heather Allen, M. Noone, Ph.D., Cathy A. Enz, Ph.D., and Jessie Glassmire Fourth Quarter 2016: Hotels Are Getting and Charles Feltman Costlier to Finance, Crocker H. Liu, Adam D. Vol. 16 No. 4 Authenticity in Scaling the Vol. 17  No. 7  2017 CHR Compendium Nowak, and Robert M. White Jr.  Vision: Defining Boundaries in the Food and Beverage Entrepreneurship Development Vol. 17  No. 6 Do Property Characteristics or Cash Flow Drive Hotel Real Estate Value? The 2016 Reports Cycle, by Mona Anita K. Olsen, Ph.D., and Cheryl Stanley Answer Is Yes, by Crocker Liu, Ph.D., and Vol. 16 No. 15 Hotel Profit Implications from Jack Corgel, Ph.D. Rising Wages and Inflation in the U.S., by Jack Vol. 16 No. 3 Communication Planning: A Corgel, Ph.D. Template for Organizational Change, by Amy Vol. 17  No. 5  Strategic Management Newman Practices Help Hospitals Get the Most from Vol. 16 No. 14 The Business Case for (and Volunteers, by Sean Rogers, Ph.D. Against) Restaurant Tipping, by Michael Lynn, Ph.D. Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19 13 Advisory Board Syed Mansoor Ahmad Cornell Hospitality Report Vice President & Global Business Head for Energy Management Services, Wipro EcoEnergy Vol. 17, No. 18 (December 2017) Scott Berman ’84 © 2017 Cornell University. This report may not be reproduced or distributed without the express permission of the publisher. Principal, Real Estate Business Advisory Services, Industry Leader, Hospitality & Leisure, PwC Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Re- Noah Brodsky ’02, SVP, Worldwide Loyalty & search at Cornell University. Engagement, Wyndham Hotel Group Christopher K. Anderson, Director Bhanu Chopra, Founder and Chief Executive Officer, Carol Leitch-Zhe, Program Manager RateGain Kate Walsh, Dean, School of Hotel Administration Nathalie Corredor, Senior Vice President of Corporate Center for Hospitality Research Strategy, Hilton Cornell University S.C. Johnson College of Business Susan Devine ’85, Senior Vice President, Strategic School of Hotel Administration Development, Preferred Hotels & Resorts Statler Hall Ithaca, NY 14853 Balaji Krishnamurthy, VP, Global Strategy, Corporate 607-254-4504 chr.cornell.edu Development and Business Intelligence, Sabre Peter Nowlan, Executive Vice President & Chief Marketing Officer, Four Seasons Hotels and Resorts Dave Mei ’94, Vice President, Owner & Franchise Services, InterContinental Hotel Group Chuck Floyd, P ’15, P ’18, Global President of Operations, Hyatt Abhijit Pal, Senior Executive, Expedia R.J. Friedlander, Co-founder and Chief Executive Officer, Nabil Ramadhan, Group Chief Human Capital Officer, ReviewPro Jumeirah Group Dario Gonzalez Vice President, Enterprise Architecture, Dave Roberts, ENG ’87, MS ’88, Senior Vice President, , DerbySoft Consumer Insight & Revenue Strategy, Marriott International, Inc. Steve Hood, Senior Vice President of Research, STR John Spencer, Senior Managing Director, Global Sanjeev Khanna, Vice President & Head of Business Hospitality Leader, Accenture Unit, Tata Consultancy Services, Ltd. Berry van Weeldon, MMH ’08, Director, Reporting and Thomas Landen, Director, Global Field Marketing, Analysis, Priceline.com Revinate Adam Weissenberg, ’85, Global Travel, Hospitality & Faith Marshall, Director, Business Development, NTT Leisure Leader & National Managing Partner, Clients & DATA, Inc. Industries, Deloitte & Touche USA LLP Craig Mason ’85, Senior Vice President, Asset Jon S. Wright, President and Chief Executive Officer, Management, Host Hotels and Resorts Access Point Financial 14 Cornell Hospitality Report • December 2017 • www.chr.cornell.edu • Vol. 17, No. 19