Hotel's grid group structure and risk management practices

Abstract

Risk management is an emerging research area in tourism and hospitality. This paper classifies hotels based on grid (control) and group (inter dependencies) structure given by the cultural theory of risk. Paper aims to understand whether hotels grouped as per grid group structure differ on risk coping strategies such as mitigation, absorption and transfer for various hospitality risks. Primary data is collected from 112 senior managers of luxury hotels using structured questionnaire aimed to capture the grid group aspect and risk management practices. Using factor scores, hotels are grouped. One way analysis of variance is performed on this data to ascertain whether risk management practices of various types of hotels differ. Results provide new insights into hotels grid group aspect and risk related behavior. Revealing that hotels significantly differ on risk coping, confirming that structure of hotel–the grid and group does impact its risk management practices. The study opens up a new perspective on hotel risk management. The Hotels risk professionals can benefit from understanding grid group structure and risk coping practices. The study enhances the understanding of risk and grid group structure with regard to managing hospitality risk.