Guidelines for Hotel Business Management for Elderly Tourists

in the Central Region of Thailand

PRAHUSCHAI RAMART1, RUNGROJ SUBANJUI2*

1Faculty of Business Administration and Service Industry,

King Mongkut’s University of Technology North Bangkok

1518 Pracharat 1 Road, Wongsawang, Bangsue, Bangkok 10800

THAILAND

2Faculty of Business Administration,

King Mongkut’s University of Technology North Bangkok

1518 Pracharat 1 Road, Wongsawang, Bangsue, Bangkok 10800

THAILAND

*Corresponding Author

Abstract: - This research aims to 1) study the guidelines for hotel business management for elderly tourists in the

central region of Thailand and 2) test the influence of the management components of hotel businesses on elderly

tourists in the central region of Thailand. The research sample consisted of 400 hotel entrepreneurs or hotel

owners in the central region. The tools used include questionnaires. It is survey-based research. The statistics used

for data analysis include structural equation modeling. The results showed that the assumed model was consistent

with empirical data with p-value = 0.190, CMIN/DF = 1.090, GFI = 0.956, and RMSEA = 0.015. The research

findings indicate that: 1) Marketing strategy directly influences service quality, 2) Service quality directly affects

hotel management, 3) Marketing strategy directly impacts hotel management, 4) Marketing strategy directly

influences customer satisfaction, and 5) Customer satisfaction directly affects hotel management.

Key-Words: - hotel management, elderly tourists, marketing strategy, service quality, customer

satisfaction

Received: March 6, 2023. Revised: August 6, 2023. Accepted: September 5, 2023. Available online: October 24, 2023.

1 Introduction

The United Nations acknowledges that the number

of elderly individuals is rapidly increasing, and it is

projected that there will be over two billion people

aged 60 and above by the year 2050, accounting for

22% (or one in five) of the global population, [1]. As

a consequence of this population growth, tourism for

the elderly is expected to become a developing and

evolving market, [2]. In 2020, the global population

of "retirees" or individuals aged 60-65 and above

increased by approximately threefold, reaching 700

million people, a trend that is mirrored in Thailand,

[3]. Statistics for elderly individuals aged 60 and

above in Thailand in 2019 indicated a total of

11,136,059 people or roughly 16.73% of the

population. Thailand is poised to enter a fully aged

society in 2021. Based on the definition of a "3-level

aged society", it signifies that Thailand will progress

to the second level, referred to as an "Aged Society.

Based on the United Nations definition, a country is

an Ageing Society when the share of the aged

population (people aged 65 or older) is higher than

7% and is an Aged Society when this share rises

above 14%. Once this share is over 20%, the nation

is called a Super-Aged Society, [4]. More so today

than ever before, ageing has become a unique stage

in the development process. To achieve competitive

advantage in times of rapid change, tourism

stakeholders need to have a clear understanding of

this direction of change, and its implications for

business or destination management, [5].

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Significant global trends are currently prompting

the tourism industry to adapt. These trends include:

1) The trend of shifting the global population

structure towards an aging society is particularly

pronounced among international travelers when

compared to other age groups, [6]. 2) The trend of

promoting the tourism industry in several countries

through the relaxation of visa regulations for tourists

and support for investments has intensified

international competition in the sector, [7], and; 3)

The rapid advancement of digital technology has led

to a growing role for social media and smartphones

in consumers' daily lives. This shift has resulted in

changes in the behavior of travelers, necessitating

businesses to adapt promptly. Furthermore, the

proportion of elderly tourists, who are increasing at a

faster rate than other age groups and are entering

aging societies, makes them an influential market

segment for the tourism industry. Elderly tourists

have both purchasing power and leisure time, [8].

This presents an opportunity for the tourism

industry. Two primary groups with potential are

elderly tourists and retired foreign nationals. Elderly

tourists tend to spend more per person per trip

compared to general tourists. Additionally, the

increasing number of elderly tourists has had a

significant impact on the population of retired

foreign nationals in Thailand. The Tourism

Authority of Thailand (TAT) is pleased to report that

Thailand has been ranked the best place in Asia and

the fifth best place in the world for retirees by

French magazine Capital, which published the list on

the website Retraite sans Frontieres, [9].

Based on the aforementioned increasing

trend of elderly tourists, the researchers are

interested in studying the management strategies for

hotels catering to elderly tourists in the central

region of Thailand. The goal is to understand how

hotel businesses in this region are adapting to the

characteristics of elderly tourists. The researchers

anticipate that the findings from this study will be

beneficial for private sector organizations in

developing management guidelines for hotel

businesses catering to elderly tourists in the future.

1.1 Research Objectives

1) To study the guidelines for hotel business

management for elderly tourists in the central region

of Thailand.

2) To examine the influence of management

components on hotel business management for

elderly tourists in the central region of Thailand.

2 Literature Review

2.1 Tourism Management for Elderly

Travelers

Elderly tourists are a group that requires care,

services, and health risk management. They seek

recreational activities and emphasize the importance

of travel experiences related to relaxation and

enjoyment, as they have more leisure time due to

retirement, [10]. Additionally, elderly travelers are

experiential tourists who seek genuine experiences

during their journeys. They are interested in learning

and gaining real experiences from the destinations

they visit. Furthermore, elderly tourists prioritize

convenience in travel and often value safety in the

destination and accommodation, [11]. They also

seek value for the money they spend, [12].

2.2 Tourism for Senior Citizens

In 2003, the Elderly Persons Act was enacted in

Thailand. Whereas Section 54 of the Constitution of

the Kingdom of Thailand contains provisions on the

rights of the elderly that they have right to receive

aids from the State; in order to comply with the

provisions of law and enact the law which

encompasses every arenas for the elderly; therefore,

to carry out work in relation to the protection,

promotion and support of rights and benefits of the

elderly in a manner that is efficient and consistent

with provisions of the Constitution of the Kingdom

of Thailand, it is necessary to enact this Act, [13].

Therefore, hotel operators should review their

operational components to cater to the needs of

senior citizen travelers, [14]. This can be done under

the framework of EECE, which encompasses

Employees, Enterprises, Customers, and

Entrepreneurs, [15]. Such an approach ensures that

hotel management aligns with the preferences and

behaviors of senior citizen tourists, [10].

2.3 Kotler's Marketing 5.0

Marketing 5.0 is the integration of cutting-edge

technology with human-to-human communication to

enhance marketing capabilities in line with the

changing behaviors and preferences of consumers in

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the digital age, [16]. It involves the incorporation of

secure technology systems (Blockchain) to drive

digital businesses efficiently, [17]. This includes the

analysis of customer-generated data to help

marketers tailor their strategies to individual

customers, a process known as "one-to-one

targeting", [18].

2.4 McKinsey's 7s Model

Proactive management is becoming increasingly

important as it is a process for defining an

organization's direction and future course of action,

[19]. Strategic management involves analyzing both

external and internal environments, [20]. Managing

with McKinsey's 7s Model includes at least 7

factors: 1) Strategy, 2) Structure, 3) Systems, 4)

Style, 5) Staff, 6) Skills, and 7) Shared Values. It

requires an assessment of how well the McKinsey 7s

Model aligns with the organization's objectives and

goals, [21].

2.5 Conceptual Framework

According to all concepts and theories, the

guidelines for hotel business management for elderly

tourists in the central region of Thailand can be

summarized into 4 components, which are:

Marketing Strategy, Service Quality, Customer

Satisfaction, and Hotel Management as shown in

Figure 1.

Fig. 1: Conceptual Framework

3 Research Methodology

3.1 Population and Sampling

The population for this research consists of hotel

entrepreneurs or hotel owners in the central region of

Thailand, totaling 6,054 individuals. This population

includes small and medium-sized hotel operators

total of 5,757 individuals and large hotel operators

total of 297 individuals, [22]. The research used

hypothesis testing and analyzed the results using

Structural Equation Modeling (SEM). The sample

size used for analysis is determined by specifying

the ratio of samples to parameters or variables based

on, [23]. It suggests that the number of sample

groups suitable for multivariate analysis should be at

least 5-10 times the number of indicators. In this

research study, there are 40 questionnaire items, so a

minimum of approximately 400 samples is

recommended. The research uses purposive

sampling to select the sample.

3.2 Research Tools

The researchers used qualitative research with In-

depth interview techniques with 9 hotel business

experts to obtain the research tool and then used a

questionnaire in the form of a Likert Scale rating

scale, with criteria for rating responses on a 5-point

scale according to Likert's method, [24]. The

researchers created a draft questionnaire and

assessment form and provided them to experts with

knowledge and experience in the subject matter for

evaluation. Five experts were consulted to assess the

questionnaire to determine its quality using the

Index of Item-Objective Congruence (IOC). The

IOC values ranged between 0.60 and 1.00, with

values above 0.50 considered appropriate, [25].

Subsequently, the researchers conducted a Try-

Out with a sample population similar to the target

population. This sample consisted of 30 individuals

to analyze discrimination in the questionnaire items.

This involved analyzing the standard deviation

(S.D.) for items with a checklist format and

calculating the correlation and reliability values for

Likert Scale items. The discrimination values ranged

from 0.49 to 1.35, while the overall questionnaire

reliability was 0.98, which is considered the range of

more than 0.9 is very good, [26]. The research then

used this questionnaire to collect data by requesting

responses from the sample group.

3.3 Data Analysis

Data analysis involved both descriptive statistics and

inferential statistics using the SPSS software

package. For multivariate analysis and structural

equation modeling, the researchers used the AMOS

software. Developing models that are consistent with

empirical data must consider that the criteria used

for evaluation must be accepted and widely used.

The criteria used to evaluate the data-model fit as

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outlined in the research, consisting of four values: 1)

Chi-square probability greater than 0.05 2) Ratio of

chi-square to degrees of freedom less than 2.00 3)

Comparative Fit Index greater than 0.90, and 4) Root

Mean Square Error of Approximation less than 0.08,

[27].

4 Results

The importance levels of the components in the

guidelines for hotel business management for elderly

tourists in the central region of Thailand are as

follows:

1) Analysis of the Marketing Strategy

component indicates an overall high level of

importance (X

 = 4.38).

2) Analysis of the Service Quality

component reveals the highest overall level of

importance (X

 = 4.57).

3) Analysis of the Customer Satisfaction

component shows the highest overall level of

importance (X

 = 4.51).

4) Analysis of the Hotel Management

component indicates the highest overall level of

importance (X

 = 4.56).

The researcher conducted model

improvements based on the Modification Indices

obtained from the pre-established program along

with theoretical foundations to remove observed

variables that were deemed inappropriate one at a

time and processed the new model iteratively until a

model that met all four statistical criteria was

achieved. After completing the model adjustments,

the analysis results:

5) According to the objectives of studying

the components of the guidelines for hotel business

management for elderly tourists in the central region

of Thailand, which consist of 4 components:

Marketing Strategy, Service Quality, Customer

Satisfaction, and Hotel Management. All 4

components were derived from a review of relevant

literature. It was revealed that the empirical data

demonstrated consistency, with statistical values of

p-value = 0.190, CMIN/DF = 1.090, GFI = 0.956,

and RMSEA = 0.015. It achieved statistical

significance at the 0.001 level and aligned well with

the literature and empirical data, as shown in Figure

2. The observational variables are presented in Table

Fig. 2: Path Diagram of the Structural Equation

Model

Table 1. Observational variables

Abbreviation

Description

Marketing Strategy

MKS2

Setting marketing strategies based on analysis

MKS4

Implementing marketing strategies

MKS6

Controlling and evaluating marketing strategy

outcomes

Service Quality

SER1

Convenience facilities

SER4

Safe environment

SER9

Clean rooms

SER10

Comfort of the place

SER12

Polite and catering staff

SER14

Quick room reservations

SER17

Providing tourist information

Hotel Management

HTM15

Knowledgeable staffs

HTM20

Affordable room rates

HTM21

Efficient service staffs

HTM22

Building trust with customers

HTM23

Using technology for communication and

operations

HTM24

Collaborating with hotels in the area

Customer Satisfaction

CUS12

Friendly service staffs

CUS14

Online communication channels

CUS15

Luggage assistance service

CUS16

Convenient transportation near the community

CUS18

Good natural environment

Figure 2 shows the analysis of the overall

influence of latent variables in the structural

equation model, the business development

guidelines for hotel business management for elderly

tourists in the central region of Thailand in

Standardized Estate mode after model

improvements. The model consists of four latent

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variables, one exogenous latent variable (Marketing

Strategy), and three endogenous latent variables

(Service Quality, Customer Satisfaction, and Hotel

Management). The highest overall influence is on

the Marketing Strategy components Direct and

overall influence on Hotel Management with a

weight value (Standardized Region Weight) equal to

0.55.

The results of the hypothesis testing to analyze

the causal relationships among latent variables in the

structural equation model of the guidelines for hotel

business management for elderly tourists in the

central region of Thailand revealed 5 hypotheses:

Hypothesis 1, marketing strategy components

have a statistically significant direct influence on

service quality, has been confirmed with a statistical

significance level of 0.001 and a standardized

regression weight of 0.19. This aligns with the

research hypothesis as initially proposed.

Hypothesis 2, service quality components have a

statistically significant direct influence on hotel

management, has been confirmed with a statistical

significance level of 0.01 and a standardized

regression weight of 0.20. This aligns with the

research hypothesis as initially proposed.

Hypothesis 3, marketing strategy components

have a statistically significant direct influence on

hotel management, has been confirmed with a

statistical significance level of 0.001 and a

standardized regression weight of 0.55. This aligns

with the research hypothesis as initially proposed.

Hypothesis 4, marketing strategy components

have a statistically significant direct influence on

customer satisfaction, has been confirmed with a

statistical significance level of 0.001 and a

standardized regression weight of 0.44. This aligns

with the research hypothesis as initially proposed.

Hypothesis 5, customer satisfaction components

have a statistically significant direct influence on

hotel management, has been confirmed with a

statistical significance level of 0.01 and a

standardized regression weight of 0.52. This aligns

with the research hypothesis as initially proposed.

5 Discussion and Conclusion

The results of the research using descriptive statistics

and a structural equation model can be concluded:

5.1 Marketing Strategy Component

1) The results of the research model

analysis, as illustrated in Figure 2, reveal the

following findings: Marketing Strategy has a direct

influence on Service Quality, confirming Hypothesis

1. This aligns with the study conducted by, [28],

which found that strategies related to product,

pricing, promotion, place, personnel, and processes

significantly impact service quality and customer

satisfaction. A marketing strategy denotes a

business's complete game plan for reaching potential

consumers as well as turning them into customers of

their products along services. A marketing strategy

comprises the business's value proposition,

important brand messaging, data on target customer

demographics, as well as other high-level elements.

Based on the role of marketing strategy and service

quality in hotel business performance, it is evident

that improving marketing strategies to enhance

organizational efficiency involves innovative

approaches to service delivery that meet customer

needs.

2) The results of hypothesis testing for

Hypothesis 3, Marketing Strategy has a direct

influence on Hotel Management, align with previous

research, [29]. It was found that incorporating digital

marketing strategies, particularly in the analysis of

online customer reviews, can be used to develop

marketing plans and improve hotel operations.

Additionally, research by, [30], highlighted the

impact of the COVID-19 pandemic on the hotel

industry, leading to travelers' reluctance to travel and

stay in hotels. To instill confidence in hotel guests,

hotels must establish cleanliness measures within the

hotel premises and communicate these measures

effectively through online channels, ensuring that

travelers are well-informed and comfortable with the

idea of staying in hotels.

3) The results of hypothesis testing for

Hypothesis 4, Marketing Strategy has a direct

influence on Customer Satisfaction, are consistent

with previous research, [31]. It was found that

employing close-to-customer marketing strategies

leads to higher customer satisfaction. Additionally,

the research by, [32], emphasized that marketing

planning, considering factors such as business

location, cleanliness, effective staff management,

and direct customer relationships, directly influences

customer satisfaction when using the services

provided by the business.

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5.2 Service Quality Component

The results of hypothesis testing for Hypothesis 2,

Service Quality has a direct influence on Hotel

Management, align with previous research findings

regarding the impact of service quality on the hotel

industry. It was found that improving the skills and

quality of service among hotel staff significantly

enhances the efficiency of hotel management, [33].

Research by, [34], also established a direct

relationship between high service quality, perceived

value, and satisfaction of guests staying in hotels.

This relationship was further linked to internal hotel

management processes. Additionally, the study

conducted by, [35], revealed that high service quality

promotes customer satisfaction and value, fostering

clear communication and creative thinking,

ultimately contributing to profitability.

5.3 Customer Satisfaction Component

The results of hypothesis testing for Hypothesis 5,

Customer Satisfaction has a direct influence on

Hotel Management, are in line with previous

research findings, [36]. It was found that the

decision-making process of business travelers when

choosing hotel accommodations during their trips is

influenced by the management of services,

welcoming staff, and various amenities.

Additionally, the research by, [37], highlighted that

utilizing customer satisfaction survey results to

formulate improvement plans for hotel operations

helps in retaining existing customers.

5.4 Conclusion

The importance of the components of the hotel

business management for elderly tourists in the

central region of Thailand, analysis of the Service

Quality component reveals the highest overall level

of importance. According to, [38], they introduced

elements to enhance the SERVQUAL (Service

Quality) tools by identifying 10 service quality

assessment factors and consolidating them into 5

dimensions to gain a better understanding of the true

meaning of service quality in the service industry.

The fundamental factors that customers use to judge

the quality of service have been developed including

Tangibles, Reliability, Responsiveness, Assurance,

and Empathy. Customer satisfaction is influenced by

both HRM and service quality practices. Ultimately,

this research supports the close association between

HRM practices and hotel performance. Both human

resource management methods and service quality

practices have shown their impact on client

happiness, [39]. It shows the importance of service

quality that hotel business operators should focus on

as their priority.

6 Suggestions

1) The theoretical contributions obtained

from this research study aim to present strategic

marketing, service quality, and customer satisfaction

in managing hotel businesses for elderly tourists in

the central region of Thailand. The research results

provide theoretical contributions in generating

knowledge and advancing research findings to

develop new insights.

2) Hotel entrepreneurs should prioritize the

development of service quality and create customer

satisfaction that aligns with the changing

characteristics of customers in different eras. Special

attention should be given to the elderly customer

group, which will become a major customer base in

the future. Utilize appropriate technology and

amenities to cater to the elderly.

3) Government agencies can use the

research findings as guidelines for planning and

preparing for the increasing number of elderly

tourists in the future. This will ensure that it is

aligned with the service of hotels.

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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2024.21.2

Prahuschai Ramart, Rungroj Subanjui

E-ISSN: 2224-2899

Volume 21, 2024

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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2024.21.2

Prahuschai Ramart, Rungroj Subanjui

E-ISSN: 2224-2899

Volume 21, 2024