Crisis Management, Reputation, and Performance of Upscale Hotels in the Post-COVID-19 Crisis

Abstract

The tourism and hospitality industry has been badly affected by the COVID-19 pandemic. The consumption patterns and the brand-building process face an uncertain future because of the unprecedented economic crisis impacts. Therefore, this study investigates how crisis management influences brand reputation and performance, including the factors that influence upscale hotels in the post-COVID-19 crisis in Indonesia. A total of 341 upscale hotel managers were selected as respondents. The hypotheses were tested using the covariance-based structural equation modeling (CB-SEM) analysis. The results indicate that crisis management mitigates the adverse long-term effects of a crisis instead of directly affecting brand reputation and performance. In addition, the result also shows that brand reputation significantly influences brand performance. The findings of the study confirm that guests will keep from ignoring the brand and the brand will suffer long-term damage if the crisis is not managed effectively. Lastly, it is empirically proven that crisis management and a strong brand specifically in the Indonesian hotel industry can assist the hotel industry in selecting the best mitigation strategies to preserve brand performance if a future crisis occurs.

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Publication Date

06 May 2024

eBook ISBN

978-1-80296-132-4

Publisher

European Publisher

Volume

133

Print ISBN (optional)

-

Edition Number

1st Edition

Pages

1-1110

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Riyadi, A., Leonandri, D. G., & Jamaluddin, M. R. (2024). Crisis Management, Reputation, and Performance of Upscale Hotels in the Post-COVID-19 Crisis. In A. K. Othman, M. K. B. A. Rahman, S. Noranee, N. A. R. Demong, & A. Mat (Eds.), Industry-Academia Linkages for Business Sustainability, vol 133. European Proceedings of Social and Behavioural Sciences (pp. 1032-1055). European Publisher. https://doi.org/10.15405/epsbs.2024.05.84