PERFORMANCE MEASUREMENT SYSTEM: A BENCHMARKING SYSTEM OF THE SLOVENE AND CROATIAN HOTELS
Gordana Ivankovič - University of Primorska, Faculty of Tourism Studies – Turistica, Obala 11a, 6320 Portorož, Slovenia
Mateja Jerman - University of Primorska, Faculty of Management, Cankarjeva 5, 6000 Koper, Slovenia
DOI: https://doi.org/10.31410/tmt.2020.317
5th International Thematic Monograph - Modern Management Tools and Economy of Tourism Sector in Present Era, Belgrade, 2020, Published by: Association of Economists and Managers of the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, North Macedonia; ISSN 2683-5673, ISBN 978-86-80194-42-4; Editors: Vuk Bevanda, associate professor, Faculty of Social Sciences, Belgrade, Serbia; Snežana Štetić, full time professor, The College of Tourism, Belgrade, Serbia, Printed by: SKRIPTA International, Belgrade
Abstract: The paper presents a performance measurement system that was developed with the aim to provide a useful benchmarking tool for Slovene and Croatian hotels. Financial results of Slovene and Croatian hotels show that there is room for improvements. That is why the necessity to develop a performance measurement system emerged. The paper presents the development process of this performance measurement system and the theoretical background of selected measures that are included in the system. This system includes both financial and non-financial indicators of performance. Financial indicators are based on USALI standards for the lodging industry, while non-financial indicators were developed based on a literature review. Non-financial indicators include information about guests, employees, and corporate social responsibility. The presented performance measurement system enables hotels to analyse their financial performance on a daily level, while non-financial indicators can be evaluated on a monthly and annual basis.
Keywords: Hotel industry, Performance analysis, Benchmarking analysis, Slovenia, Croatia.
REFERENCES
Ahmad, Nik N. N., Sulaiman, M., & Siswantoro, D. (2003). Corporate Social Responsibility
Disclosure in Malaysia: An Analysis of Annual Reports of KLSE Listed Companies. International
Journal of Economics, Management and Accounting, 11(1), 1–21.
AJPES. (2020). Financial data. Retrieved from https://www.ajpes.si/fipo/ag_default.asp.
Arbelo, A., Pe´rez-Go´mez, P., Arbelo-Pe´rez, M. (2017). Cost efficiency and its determinants in
the hotel industry. Tourism Economics, 23(5) 1056–1068.
Ashton, A. S. (2018). How human resources management best practice influence employee satisfaction
and job retention in the Thai hotel industry. Journal of human resources in hospitality
& tourism, 17(2), 175–199.
Benavides-Velasco, C.A., Quintana-García, C., & Marchante-Lara, M. (2014). Total quality
management, corporate social responsibility, and performance in the hotel industry. International
Journal of Hospitality Management, 41, 77-87.
Casado-Díaz, J. M., & Simón, H. (2016). Wage differences in the hospitality sector. Tourism
Management, 52, 96-109.
Chibili. M. N. (2016). Basic Management Accounting for the Hospitality Industry. Noordhoff
Uitgevers Groningen: Houten.
Chi, C. G., & Gursoy, D. (2009). Employee satisfaction, customer satisfaction, and financial performance:
An empirical examination. International Journal of Hospitality Management,
28(2), 245-253.
Damonte, L., Rompf, P., Bahl, R., & Domke, D. (1997). Brand affiliation and property size
effects on measures of performance in lodgings industry. Hospitality research journal,
20(3), 1-16.
De Grosbois, D. (2012). Corporate Social Responsibility Reporting by the Global Hotel Industry:
Commitment, Initiatives and Performance. International Journal of Hospitality
Management, 31(3), 896–905.
Dopson, L.R., & Hayes, D.K. (2016). Managerial Accounting for the Hospitality Industry. New
Baskerville: Wiley.
Dent, J. (1996). Global competition: challenges for management accounting and control. Management
accounting research, 7(2), 247-269.
Directive 2014/95/EU of the European Parliament. (2014). Retrieved from https://eur-lex.europa.
eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0095.
Downie, N. J. (1997). The use of accounting information in hotel marketing decisions. International
journal of hospitality management, 16(3), 305-312.
D’Urso, P., De Giovanni, L., Disegna, M., & Massari, R. (2013). Bagged Clustering and its
application to tourism market segmentation. Expert Systems with Applications, 40(12),
4944–4956.
Forgacs, G. (2010). Revenue Management. Maximizing Revenue in Hospitality Operations.
Michigan: American Hotel and Lodging Educational Institute.
FTHM – Faculty of Tourism and Hospitality Management. (2020). Hotel Benchmarking. Retrieved
from http://www.hotel-benchmarking.com/uploads/44383-benchmarking-report-
for-12-2020.pdf
Füller, J., & Matzler, K. (2007). Virtual product experience and customer participation—A
chance for customer-centred, really new products. Technovation, 27(6–7), 378-387.
Garay, L. A., & Font, X. (2012). Doing Good to Do Well? Corporate Social Responsibility Reasons,
Practices and Impacts in Small and Medium Accommodation Enterprises. International
Journal of Hospitality Management 31(2), 329–337.
GRI. (2020). GRI Standards. Retrieved from https://www.globalreporting.org/how-to-use-thegri-
standards/resource-center/?g=6fac477e-42a6-42b4-b2b5-dc34887703d5.
Gu, Z., & Siu, R. C. S. (2008). Industry Labor Force Quality: An Investigation from the Customer
Service Perspective. UNLV Gaming Research and Review Journal, 12(1-2), 1-13.
Harris, P. J. (1992). Profit planning. Oxford: Butterworth-Heinemann.
Holcomb, J. L., Randall, S.U., & Okumus, F. (2007). Corporate Social Responsibility: What
Are Top Hotel Companies Reporting? International Journal of Contemporary Hospitality
Management, 19(6), 461–475.
Ivankovič, G., Jerman, M., Planinc, T., & Uran Maravić, M. (2015). Benchmarking of the Slovene
and Croatian hotel industry – approach to market segmentation and employees. In
C. Kerdpitak (Ed.), ICBTS 2015: Proceedings of the 2015 ICBTS International Academic
Research Conference in Europe & America. Paper presented at International Academic
Research Conference, Paris, France, 12-15 April, 2015 (pp. 83-90). Bangkok: ICBTS Institute
& CK Research.
Jones, T. A. (1995). Identify Managers Information Needs in Hotel Companies. In P. J. Harris
(Ed.), Accounting and Finance for the International Hospitality Industry (pp. 163-182).
Oxford: Butterworth-Heinemann.
Jones, T. A, & Lockwood, A. (1998). Operations management research in the hospitality industry.
International journal of hospitality management, 17 (2), 183-202.
Kahreh, M. S., Tive, M., Babania, A., & Hesan, M. (2014). Analyzing the Applications of Customer
Lifetime Value (CLV) based on Benefit Segmentation for the Banking Sector. Procedia
- Social and Behavioral Sciences, 109(8), 590–594.
Kaplan, R. S., & Norton, D. P. (1992). The Balanced Scorecard: Measures that Drive Performance.
Harvard Business Review, 70, 71-79.
Khasharmeh, H.A., & Desoky, A. M. (2013). On-line Corporate Social Responsibility Disclosures:
The Case of the Gulf Cooperation Council (GCC) Countries. Global Review of
Accounting and Finance, 4(2): 39–64.
Kim, Y. H., Barber, N., & Kim, D. (2019). Sustainability research in the hotel industry: Past,
present, and future. Journal of Hospitality Marketing & Management, 28(5), 576-620.
Köseoglu, M. A., Altin, M., Chan, E., & Aladag, O. F. (2020). What are the key success factors
for strategy formulation and implementation? Perspectives of managers in the hotel industry.
International Journal of Hospitality Management, 89, 102574.
Laškarin Ažić, M. (2017). The impact of hotel employee satisfaction on hospitability performance.
Tourism and Hospitality Management, 23(1), 105-117.
Lewis, R., & Chambers, R. E. (1989). Marketing leadership in hospitality. Foundations and
practices. London: Van-Nostrand Reinhold.
Lipunga, A. M. (2013). Corporate Social Responsibility Reporting by Commercial Banks in
Annual Reports: Evidence from Malawi. International Journal of Business and Social
Research, 3(9), 88–101.
Matzler, K., & Renzl, B. (2007). Assessing asymmetric effects in the formation of employee
satisfaction. Tourism Management, 28(4), 1093-1103.
Mia, L., & Chenhall, R. (1994). The usefulness of MAS functional differentiation and management
effectiveness. Accounting, organization, and society, 19(1), 1-13.
Ministry of Tourism Republic of Croatia. (2020). Tourism in figures 2019. Retrieved from https://
www.htz.hr/sites/default/files/2020-07/HTZ%20TUB%20HR_%202019%20%281%29.pdf.
Nemec Rudež, H. (2013). Potovalna dejavnost v sodobnem okolju. Koper: University of Primorska.
Nemec Rudez., H., & Mihalic, T. (2007). Intellectual capital in the hotel industry: A case study
from Slovenia. Hospitality Management, 26(1), 188-199.
Nickels, G. W., & Wood B. M. (2000). Marketing Relationships, Quality, Value. New York:
Worth Publishers, Inc.
Polovitz, N. (1996). Foundations of tourism. Chicago: Prentice Hall.
Ponnu, C. H., & Okoth, M. O. (2009). Corporate Social Responsibility Disclosure in Kenya: The
Nairobi Stock Exchange. African Journal of Business Management, 3(10), 601–608.
RNUST 2007-2011. (2009). Retrieved from http://www.turistica.si/downloads/
RNUST-2007-2011.pdf.
Serra-Cantallops, A., Peña-Miranda, D. D., Ramón-Cardona, J., & Martorell-Cunill, O. (2018).
Progress in Research on CSR and the Hotel Industry (2006-2015). Cornell Hospitality
Quarterly, 59(1) 15–38.
STB – Slovenian Tourist Board. (2020). Tourism in numbers 2019. Retrieved from https://www.
slovenia.info/uploads/dokumenti/tvs/2019/turizem_v_stevilkah_2019.pdf.
Stubelj, I. & Jerman, M. (2019). Empirical analysis of Slovenian hotel industry performance
with the relative residual income approach. In V. Bevanda & S. Štetić (Eds.), 4th International
Thematic Monograph: Modern Management Tools and Economy of Tourism Sector
in Present Era (pp. 397-412). Belgrade: Association of Economists and Managers of the
Balkans with Faculty of Tourism and Hospitality, Ohrid, North Macedonia.
Su, L., Pan, Y., & Chen, X. (2017). Corporate social responsibility: Findings from the Chinese
hospitality industry. Journal of Retailing and Consumer Services, 34, 240-247.
USALI – Uniform System of Accounts for the Lodging Industry. (2019). Retrieved from https://
www.hftp.org/hospitality_resources/usali_guide/
Tkaczynski, A., Rundle-Thiele, S. R., & Beaumont, N. (2009). Segmentation: A tourism stakeholder
view. Tourism Management, 30(2), 169–175.
Tranter, K. A., Stuart-Hill, T., Parker, J. (2014). An Introduction to Revenue Management for the
Hospitality Industry: Principles and Practices for the Real World. Harlow: Pearson.
Tsai, H., Nelson, K. F. T., & Cheng, S. (2012). Hotel Employees’ Perceptions on Corporate
Social Responsibility: The Case of Hong Kong. International Journal of Hospitality Management,
31(4), 1143–1154.
Tutuncu, O., & Kozak, M. (2007). An Investigation of Factors Affecting Job Satisfaction. International
Journal of Hospitality and Tourism Administration, 8(1), 1-19.
Yee, R. W. Y., Yeung, A. C. L., & Cheng, T. C. E. (2008). The impact of employee satisfaction
on quality and profitability in high-contact service industries. Journal of Operations Management,
26(5), 651-668.
WTTC – World Travel & Tourism Council. (2020). Slovenia. 2020 Annual Research: Key Highlights.
Retrieved from https://wttc.org/Research/Economic-Impact
Keywords: Hotel industry, Performance analysis, Benchmarking analysis, Slovenia, Croatia.
REFERENCES
Ahmad, Nik N. N., Sulaiman, M., & Siswantoro, D. (2003). Corporate Social Responsibility
Disclosure in Malaysia: An Analysis of Annual Reports of KLSE Listed Companies. International
Journal of Economics, Management and Accounting, 11(1), 1–21.
AJPES. (2020). Financial data. Retrieved from https://www.ajpes.si/fipo/ag_default.asp.
Arbelo, A., Pe´rez-Go´mez, P., Arbelo-Pe´rez, M. (2017). Cost efficiency and its determinants in
the hotel industry. Tourism Economics, 23(5) 1056–1068.
Ashton, A. S. (2018). How human resources management best practice influence employee satisfaction
and job retention in the Thai hotel industry. Journal of human resources in hospitality
& tourism, 17(2), 175–199.
Benavides-Velasco, C.A., Quintana-García, C., & Marchante-Lara, M. (2014). Total quality
management, corporate social responsibility, and performance in the hotel industry. International
Journal of Hospitality Management, 41, 77-87.
Casado-Díaz, J. M., & Simón, H. (2016). Wage differences in the hospitality sector. Tourism
Management, 52, 96-109.
Chibili. M. N. (2016). Basic Management Accounting for the Hospitality Industry. Noordhoff
Uitgevers Groningen: Houten.
Chi, C. G., & Gursoy, D. (2009). Employee satisfaction, customer satisfaction, and financial performance:
An empirical examination. International Journal of Hospitality Management,
28(2), 245-253.
Damonte, L., Rompf, P., Bahl, R., & Domke, D. (1997). Brand affiliation and property size
effects on measures of performance in lodgings industry. Hospitality research journal,
20(3), 1-16.
De Grosbois, D. (2012). Corporate Social Responsibility Reporting by the Global Hotel Industry:
Commitment, Initiatives and Performance. International Journal of Hospitality
Management, 31(3), 896–905.
Dopson, L.R., & Hayes, D.K. (2016). Managerial Accounting for the Hospitality Industry. New
Baskerville: Wiley.
Dent, J. (1996). Global competition: challenges for management accounting and control. Management
accounting research, 7(2), 247-269.
Directive 2014/95/EU of the European Parliament. (2014). Retrieved from https://eur-lex.europa.
eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0095.
Downie, N. J. (1997). The use of accounting information in hotel marketing decisions. International
journal of hospitality management, 16(3), 305-312.
D’Urso, P., De Giovanni, L., Disegna, M., & Massari, R. (2013). Bagged Clustering and its
application to tourism market segmentation. Expert Systems with Applications, 40(12),
4944–4956.
Forgacs, G. (2010). Revenue Management. Maximizing Revenue in Hospitality Operations.
Michigan: American Hotel and Lodging Educational Institute.
FTHM – Faculty of Tourism and Hospitality Management. (2020). Hotel Benchmarking. Retrieved
from http://www.hotel-benchmarking.com/uploads/44383-benchmarking-report-
for-12-2020.pdf
Füller, J., & Matzler, K. (2007). Virtual product experience and customer participation—A
chance for customer-centred, really new products. Technovation, 27(6–7), 378-387.
Garay, L. A., & Font, X. (2012). Doing Good to Do Well? Corporate Social Responsibility Reasons,
Practices and Impacts in Small and Medium Accommodation Enterprises. International
Journal of Hospitality Management 31(2), 329–337.
GRI. (2020). GRI Standards. Retrieved from https://www.globalreporting.org/how-to-use-thegri-
standards/resource-center/?g=6fac477e-42a6-42b4-b2b5-dc34887703d5.
Gu, Z., & Siu, R. C. S. (2008). Industry Labor Force Quality: An Investigation from the Customer
Service Perspective. UNLV Gaming Research and Review Journal, 12(1-2), 1-13.
Harris, P. J. (1992). Profit planning. Oxford: Butterworth-Heinemann.
Holcomb, J. L., Randall, S.U., & Okumus, F. (2007). Corporate Social Responsibility: What
Are Top Hotel Companies Reporting? International Journal of Contemporary Hospitality
Management, 19(6), 461–475.
Ivankovič, G., Jerman, M., Planinc, T., & Uran Maravić, M. (2015). Benchmarking of the Slovene
and Croatian hotel industry – approach to market segmentation and employees. In
C. Kerdpitak (Ed.), ICBTS 2015: Proceedings of the 2015 ICBTS International Academic
Research Conference in Europe & America. Paper presented at International Academic
Research Conference, Paris, France, 12-15 April, 2015 (pp. 83-90). Bangkok: ICBTS Institute
& CK Research.
Jones, T. A. (1995). Identify Managers Information Needs in Hotel Companies. In P. J. Harris
(Ed.), Accounting and Finance for the International Hospitality Industry (pp. 163-182).
Oxford: Butterworth-Heinemann.
Jones, T. A, & Lockwood, A. (1998). Operations management research in the hospitality industry.
International journal of hospitality management, 17 (2), 183-202.
Kahreh, M. S., Tive, M., Babania, A., & Hesan, M. (2014). Analyzing the Applications of Customer
Lifetime Value (CLV) based on Benefit Segmentation for the Banking Sector. Procedia
- Social and Behavioral Sciences, 109(8), 590–594.
Kaplan, R. S., & Norton, D. P. (1992). The Balanced Scorecard: Measures that Drive Performance.
Harvard Business Review, 70, 71-79.
Khasharmeh, H.A., & Desoky, A. M. (2013). On-line Corporate Social Responsibility Disclosures:
The Case of the Gulf Cooperation Council (GCC) Countries. Global Review of
Accounting and Finance, 4(2): 39–64.
Kim, Y. H., Barber, N., & Kim, D. (2019). Sustainability research in the hotel industry: Past,
present, and future. Journal of Hospitality Marketing & Management, 28(5), 576-620.
Köseoglu, M. A., Altin, M., Chan, E., & Aladag, O. F. (2020). What are the key success factors
for strategy formulation and implementation? Perspectives of managers in the hotel industry.
International Journal of Hospitality Management, 89, 102574.
Laškarin Ažić, M. (2017). The impact of hotel employee satisfaction on hospitability performance.
Tourism and Hospitality Management, 23(1), 105-117.
Lewis, R., & Chambers, R. E. (1989). Marketing leadership in hospitality. Foundations and
practices. London: Van-Nostrand Reinhold.
Lipunga, A. M. (2013). Corporate Social Responsibility Reporting by Commercial Banks in
Annual Reports: Evidence from Malawi. International Journal of Business and Social
Research, 3(9), 88–101.
Matzler, K., & Renzl, B. (2007). Assessing asymmetric effects in the formation of employee
satisfaction. Tourism Management, 28(4), 1093-1103.
Mia, L., & Chenhall, R. (1994). The usefulness of MAS functional differentiation and management
effectiveness. Accounting, organization, and society, 19(1), 1-13.
Ministry of Tourism Republic of Croatia. (2020). Tourism in figures 2019. Retrieved from https://
www.htz.hr/sites/default/files/2020-07/HTZ%20TUB%20HR_%202019%20%281%29.pdf.
Nemec Rudež, H. (2013). Potovalna dejavnost v sodobnem okolju. Koper: University of Primorska.
Nemec Rudez., H., & Mihalic, T. (2007). Intellectual capital in the hotel industry: A case study
from Slovenia. Hospitality Management, 26(1), 188-199.
Nickels, G. W., & Wood B. M. (2000). Marketing Relationships, Quality, Value. New York:
Worth Publishers, Inc.
Polovitz, N. (1996). Foundations of tourism. Chicago: Prentice Hall.
Ponnu, C. H., & Okoth, M. O. (2009). Corporate Social Responsibility Disclosure in Kenya: The
Nairobi Stock Exchange. African Journal of Business Management, 3(10), 601–608.
RNUST 2007-2011. (2009). Retrieved from http://www.turistica.si/downloads/
RNUST-2007-2011.pdf.
Serra-Cantallops, A., Peña-Miranda, D. D., Ramón-Cardona, J., & Martorell-Cunill, O. (2018).
Progress in Research on CSR and the Hotel Industry (2006-2015). Cornell Hospitality
Quarterly, 59(1) 15–38.
STB – Slovenian Tourist Board. (2020). Tourism in numbers 2019. Retrieved from https://www.
slovenia.info/uploads/dokumenti/tvs/2019/turizem_v_stevilkah_2019.pdf.
Stubelj, I. & Jerman, M. (2019). Empirical analysis of Slovenian hotel industry performance
with the relative residual income approach. In V. Bevanda & S. Štetić (Eds.), 4th International
Thematic Monograph: Modern Management Tools and Economy of Tourism Sector
in Present Era (pp. 397-412). Belgrade: Association of Economists and Managers of the
Balkans with Faculty of Tourism and Hospitality, Ohrid, North Macedonia.
Su, L., Pan, Y., & Chen, X. (2017). Corporate social responsibility: Findings from the Chinese
hospitality industry. Journal of Retailing and Consumer Services, 34, 240-247.
USALI – Uniform System of Accounts for the Lodging Industry. (2019). Retrieved from https://
www.hftp.org/hospitality_resources/usali_guide/
Tkaczynski, A., Rundle-Thiele, S. R., & Beaumont, N. (2009). Segmentation: A tourism stakeholder
view. Tourism Management, 30(2), 169–175.
Tranter, K. A., Stuart-Hill, T., Parker, J. (2014). An Introduction to Revenue Management for the
Hospitality Industry: Principles and Practices for the Real World. Harlow: Pearson.
Tsai, H., Nelson, K. F. T., & Cheng, S. (2012). Hotel Employees’ Perceptions on Corporate
Social Responsibility: The Case of Hong Kong. International Journal of Hospitality Management,
31(4), 1143–1154.
Tutuncu, O., & Kozak, M. (2007). An Investigation of Factors Affecting Job Satisfaction. International
Journal of Hospitality and Tourism Administration, 8(1), 1-19.
Yee, R. W. Y., Yeung, A. C. L., & Cheng, T. C. E. (2008). The impact of employee satisfaction
on quality and profitability in high-contact service industries. Journal of Operations Management,
26(5), 651-668.
WTTC – World Travel & Tourism Council. (2020). Slovenia. 2020 Annual Research: Key Highlights.
Retrieved from https://wttc.org/Research/Economic-Impact
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