Investing more money in salaries of employees who have contact with customers pays off in greater profitability for hotels, concludes a study of 563 hotels in the United States conducted by three professors in Cornell's School of Hotel Administration.

The study also found that the more a hotel invests in brand affiliation and management companies, the higher the hotel's profitability. However, investing in professional personnel and support staff did not pay off in greater revenue, said co-author Cathy Enz, associate dean for industry research and affairs and the Lewis G. Schaeneman Jr. Professor of Innovation and Dynamic Management at the Hotel School. She conducted the study with Professors Linda Canina and Kate Walsh.

The researchers controlled for factors that influence hotel profitability, such as demand, the size of the hotel, its property value and its location.

The study is available free at http://www.hotelschool.cornell.edu/chr/research/centerreports.html.