Measuring Performance of Hotels in Kolkata: An Empirical Study through VAICTM Method

Abstract

Intellectual capital is the most complicated element of management and the same is more important in any service sector including hospitality and tourism. Airlines, hotels, restaurant chains, and tour operators have been focusing on human resources for enhancing technical and functional qualities of services. Here, the study is confined to the measurement of service quality of Indian hotels in Kolkata through intellectual capital (human capital and structured capital) and its comparison with the physical capital over the years. Value Added Intellectual Coefficient Method (VAICTM) is applied for measuring the performance of hotels. Corporate performance through quality services of intellectual capital has been measured through profitability, return on equity, and sales growth. The findings suggest that the performance of a hotel's intellectual capital can significantly explain corporate value creation through quality services.