Hotels_ Outsourcing_ Egypt_

1. Sayed S. Mohammad El-Houshy
Demonstrator, Hotel Studies Department
Faculty of Tourism & Hotels
University of Alexandria
A Research Proposal
Submitted in Partial Fulfillment of the
Requirements for the M. Sc. Degree
In Hotel Management
2014
Outsourcing of Hotel Activities:
An investigation of Current Status & Future Tendency

2. The Hotel Business
2
Introduction
Due to economic globalization, technological change, fiercer competition, high
labor intensity and volatile demand.
Hotel management should adopt new working strategies and consider new ways
of managing organizations.
Outsourcing…
It is defined as “a management strategy in which a hotel utilizes a specialized
outsourcing supplier, forming strategic alliances with it to have the supplier operate
certain hotel functions, in an attempt to reduce costs and risks and improve efficiency’’

3. The Hotel Business
3
Statement of the Problem
Recent years have seen increased attention given to hotel outsourcing.
Significant parts of hotel operations and management have been outsourced and
documented in some parts of the world; mainly Europe, North America and Asia.
In Egypt, hotels may be engaged in one form of outsourcing or the other But,
– Empirical or even anecdotal study about strategic outsourcing in the Egyptian hotel
industry is lacking.
– Little is known of what actually happens in these hotels.
Therefore, studying hotel outsourcing is one of the significant fields that should be
well investigated in context of hotels in Egypt.

4. The Hotel Business
4
Statement of the Problem (Contd.)
What is the status-quo and future tendency of employing outsourcing
as a business strategy by four and five-star hotels
in Egypt?
Accordingly the main purpose of this study is to answer the following
question;

5. The Hotel Business
5
Objectives of the Study
Determining the reasons of outsourcing, both strategic reasons and tactical or cost
reasons.
Investigating the barriers faced by hotel managers and preventing them from
adopting outsourcing strategy.
Scrutinizing managers' perceptions of the overall effects/benefits of outsourcing
strategy in terms of quality, financial, organizational and administrative benefits.
1
2
3
4
Examining the types of functions that are currently outsourced by hotels and
finding out the tendency to outsource hotel activities in the future.

6. The Hotel Business
6
Objectives of the Study (Contd.)
Examining and analyzing the differences among hotels with different profiles
regarding the application of strategic outsourcing and its relevant determinants.
Understanding the various stages a hotel has to go through while outsourcing a
certain department or function.
Developing guidelines for applying a comprehensive outsourcing strategy in
hotels.
Providing practitioners with recommendations and suggestions to enhance the
implementation of strategic outsourcing.
5
6
7
8

7. The Hotel Business
7
Review of Literature
Definition.. Risks..Reasons..History.. Types..
TCE Theory RBV Theory Contingency Theory
Activities Outsourced in Hotels The Outsourcing Process
Ch.1
Ch.2
Ch.3
The Concept of Hotel Outsourcing
Theories Relevant to Outsourcing
The Outsourcing Strategy
Benefits

8. The Hotel Business
8
Hypotheses of the Study
Managers' Awareness of
the Reasons of
Outsourcing.
Managers' Perceptions
of the Benefits of
Outsourcing.
Barriers of Outsourcing
The Current
Status of
Outsourcing,
The Tendency for
Outsourcing
Application
(-)
(-)
(+) (+)
(+) (+)
Figure 1: The Hypothesized Model and Variables Relationships

9. The Hotel Business
9
Hypotheses of the Study
There is a significant relationship between the current status of outsourcing, tendency
for application and the managers' awareness of the reasons of outsourcing.
There is a significant relationship between the current status of outsourcing, tendency
for application and the managers' perceptions of the benefits of outsourcing.
There is a variance in the influence level between the determinant factors in affecting
the outsourcing adoption decision.
H1
H2
H3

10. The Hotel Business
10
Hypotheses of the Study
The current status of outsourcing and tendency for application is negatively related to
the perceived barriers of outsourcing.
There is a relationship between characteristics of the hotel profile (size, grade,
ownership and number of employees) and the current status of outsourcing, tendency
for application and the determinant factors in affecting the outsourcing adoption
decision.
H4
H5

11. The Hotel Business
11
Methodology of the Study
Descriptive-analytical study.
A combined methodology will be used during two phases of research.
Desk-based
Research
Field
Research
Phase
one
Phase
Two

12. The Hotel Business
12
Methodology… (Contd.)
Phase Two: Field Research
Personal
Interviews
General
Managers
(GMs)
Four-star
hotels
Sharm El-
Sheikh City
five-star
hotels
Structured
Questionnaire

13. The Hotel Business
13
Methodology…(Contd.)
Sample and Population
The targeted population of the research will include;
ALL four and five-star hotels
in Sharm El-Sheikh City
Total No. = 105
(64) four-stars & (41) five-stars
Stratified random sampling
50 % of the total population will be selected
(50% from each grade)
Sample size = 53
(32) four-stars & (21) five-stars

14. The Hotel Business
14
Methodology… (Contd.)
The structured questionnaire will contain FIVE main sections;
Status of
Outsourcing
(Checklist )
Section One
Reasons of
Outsourcing
Section Two
Barriers of
Outsourcing
Perceived Benefits
of Outsourcing
(20 Statements)
Section Three
Respondents’/Hotel
Profile
Section Four
Other
Determinant
Factors

15. The Hotel Business
15
Structure of the Study
Chapter_1: Introduction
Chapter_2: The Concept of Hotel OutsourcingPart ONE
Chapter_3: Theories Relevant to Outsourcing
Chapter_4: The Outsourcing Strategy
Chapter_5: MethodologyPart TWO
Chapter_7: Conclusion and Recommendations
Chapter_6: Results and Discussion

16. 3 January 2016 Faculty of Tourism & Hotels 16
Thank You
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