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The Service Charge System of Five Star Hotels in Seoul

  • Journal of Tourism Sciences
  • Abbr : JTS
  • 2009, 33(7), pp.379-393
  • Publisher : The Tourism Sciences Society Of Korea
  • Research Area : Social Science > Tourism

백승우 1 Park, Seul-Gi 2 Lee, Hyung-ryong 2

1하얏트 호텔
2세종대학교

Accredited

ABSTRACT

The study identify the imposed condition of service charge in hotel industry and the influence of it on employees' wage. 11 years data(sales, rate of labor cost, labor cost per an employee and average wage) of 8 five star hotels in Seoul was used to examine the effect. The results show significant difference on sales, labor cost per an employee and average wage between hotels that pay fixed rate of service charge to employee and hotels that pay unfixed rate. Results also reveal that after paying the service charge, the average wage to employee has significant correlations with sales, rate of labor cost and labor cost per an employee. These results can provide practical implications on the effective operation of service charge system to hotel operators and investors.

Citation status

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