IDEAS home Printed from https://ideas.repec.org/a/eee/touman/v52y2016icp242-253.html
   My bibliography  Save this article

Do regional factors matter? Determinants of hotel industry performance in China

Author

Listed:
  • Yang, Zhenshan
  • Cai, Jianming

Abstract

The hotel industry is deeply embedded in local regional conditions, though the influence of regional factors is seldom investigated. Three key hotel industry metrics, Revenue per Available Room (RevPAR), Average Room Rate (ARR), and rooms rented, were examined for their determinants using ordinary least squares and negative binomial regression models on key endogenous and exogenous (regional) factors, including Destination Attractiveness and Capacity, Business and Commercial Environment, Image and Openness, and Tourism Professional Specialization. Using China as a case study, and at different hotel star designations (2- to 5-star hotels), the results show that RevPAR is determined mainly by labor quality and Tourism Professional Specialization. Particularly, regional factors significantly affect ARR and rooms rented. The influence and sophistication of regional factors increases with higher star designations. This paper highlights links between the hospitality industry and regional economic development, which should be considered by both the hotel industry and tourism policy makers.

Suggested Citation

  • Yang, Zhenshan & Cai, Jianming, 2016. "Do regional factors matter? Determinants of hotel industry performance in China," Tourism Management, Elsevier, vol. 52(C), pages 242-253.
    • Handle: RePEc:eee:touman:v:52:y:2016:i:c:p:242-253
    DOI: 10.1016/j.tourman.2015.06.024
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S026151771500148X
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.tourman.2015.06.024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fraj, Elena & Matute, Jorge & Melero, Iguácel, 2015. "Environmental strategies and organizational competitiveness in the hotel industry: The role of learning and innovation as determinants of environmental success," Tourism Management, Elsevier, vol. 46(C), pages 30-42.
    2. Shi, Peng & Valdez, Emiliano A., 2014. "Multivariate negative binomial models for insurance claim counts," Insurance: Mathematics and Economics, Elsevier, vol. 55(C), pages 18-29.
    3. Song, HakJun & You, Geun-Jun & Reisinger, Yvette & Lee, Choong-Ki & Lee, Seung-Kon, 2014. "Behavioral intention of visitors to an Oriental medicine festival: An extended model of goal directed behavior," Tourism Management, Elsevier, vol. 42(C), pages 101-113.
    4. Wong, Jimmy & Newton, Joshua D. & Newton, Fiona J., 2014. "Effects of power and individual-level cultural orientation on preferences for volunteer tourism," Tourism Management, Elsevier, vol. 42(C), pages 132-140.
    5. Quintal, Vanessa Ann & Thomas, Ben & Phau, Ian, 2015. "Incorporating the winescape into the theory of planned behaviour: Examining ‘new world’ wineries," Tourism Management, Elsevier, vol. 46(C), pages 596-609.
    6. Ryan, Chris & Gu, Huimin, 2010. "Constructionism and culture in research: Understandings of the fourth Buddhist Festival, Wutaishan, China," Tourism Management, Elsevier, vol. 31(2), pages 167-178.
    7. Nieves, Julia & Segarra-Ciprés, Mercedes, 2015. "Management innovation in the hotel industry," Tourism Management, Elsevier, vol. 46(C), pages 51-58.
    8. Francisco Ledesma & Manuel Navarro & Jorge Perez-Rodriguez, 2005. "Return to tourist destination. Is it reputation, after all?," Applied Economics, Taylor & Francis Journals, vol. 37(18), pages 2055-2065.
    9. Chen, Ming-Hsiang, 2010. "The economy, tourism growth and corporate performance in the Taiwanese hotel industry," Tourism Management, Elsevier, vol. 31(5), pages 665-675.
    10. Pan, Frank C., 2015. "Practical application of importance-performance analysis in determining critical job satisfaction factors of a tourist hotel," Tourism Management, Elsevier, vol. 46(C), pages 84-91.
    11. Assaf, A. George & Josiassen, Alexander & Agbola, Frank W., 2015. "Attracting international hotels: Locational factors that matter most," Tourism Management, Elsevier, vol. 47(C), pages 329-340.
    12. Sun, Ya-Yen & Rodriguez, Ariel & Wu, Jih-Hwa & Chuang, Shu-Tzu, 2013. "Why hotel rooms were not full during a hallmark sporting event: The 2009 World Games experience," Tourism Management, Elsevier, vol. 36(C), pages 469-479.
    13. Gu, Huimin & Ryan, Chris & Bin, Li & Wei, Gao, 2013. "Political connections, guanxi and adoption of CSR policies in the Chinese hotel industry: Is there a link?," Tourism Management, Elsevier, vol. 34(C), pages 231-235.
    14. Sun, Minghui & Zhang, Xiaoyu & Ryan, Chris, 2015. "Perceiving tourist destination landscapes through Chinese eyes: The case of South Island, New Zealand," Tourism Management, Elsevier, vol. 46(C), pages 582-595.
    15. Alfonso Gambardella & Myriam Mariani & Salvatore Torrisi, 2009. "How 'Provincial' Is Your Region? Openness and Regional Performance in Europe," Regional Studies, Taylor & Francis Journals, vol. 43(7), pages 935-947.
    16. Kirillova, Ksenia & Fu, Xiaoxiao & Lehto, Xinran & Cai, Liping, 2014. "What makes a destination beautiful? Dimensions of tourist aesthetic judgment," Tourism Management, Elsevier, vol. 42(C), pages 282-293.
    17. Larry Dwyer & Peter Forsyth, 1997. "Impacts and Benefits of MICE Tourism: A Framework for Analysis," Tourism Economics, , vol. 3(1), pages 21-38, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Surya Bintarti & Mohammad Hatta Fahamsyah, 2018. "Improving Tourism Quality by Islamic Finance," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 393-401.
    2. Michael Murimi & Billy Wadongo & Tom Olielo, 2021. "Determinants of revenue management practices and their impacts on the financial performance of hotels in Kenya: a proposed theoretical framework," Future Business Journal, Springer, vol. 7(1), pages 1-7, December.
    3. Wang, Caiping & Dai, Shanshan & Xu, Honggang, 2018. "Estimating the land opportunism of hotel investment in generating real estate appreciation and firms’ market value," Land Use Policy, Elsevier, vol. 77(C), pages 752-759.
    4. Walheer, Barnabé & Zhang, Linjia & Luo, Yingchan, 2020. "Bidirectional technological spillover in the Chinese star-rated hotel sector: An empirical investigation," Economic Modelling, Elsevier, vol. 86(C), pages 210-226.
    5. Teixeira, Sérgio & Pocinho, Margarida, 2020. "Hotel Industry And Regional Competitiveness: The Bibliometric Perspective Of Web Of Science," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 8(2), pages 129-147.
    6. Hai Dong & Nicolas Peypoch & Linjia Zhang, 2020. "Do contextual factors matter? Evidence from Chinese hotel productivity with heterogeneity," Tourism Economics, , vol. 26(2), pages 257-275, March.
    7. Taotao Deng & Chen Gan & Yukun Hu, 2021. "Do hotel business benefit from increased tourist accessibility? Evidence from China’s high-speed railway program," Tourism Economics, , vol. 27(7), pages 1357-1374, November.
    8. Dora DONCHEVA & Dimitrina STOYANCHEVA, 2021. "Cost and profit efficiency: the case of Bulgarian hotel industry," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 12, pages 190-212, December.
    9. João Romão, 2020. "Variety, Smart Specialization and Tourism Competitiveness," Sustainability, MDPI, vol. 12(14), pages 1-13, July.
    10. Jim McFarlane & Bligh Grant & Boyd Blackwell & Stuart Mounter, 2017. "Combining amenity with experience," Tourism Economics, , vol. 23(5), pages 1076-1095, August.
    11. Barnabé Walheer, 2019. "Dynamic directional nonparametric profit efficiency analysis for a single decision-making unit: an aggregation approach," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(4), pages 1123-1149, December.
    12. Baranowski Paweł & Korczak Karol & Zając Jarosław, 2020. "Forecasting Cinema Attendance at the Movie Show Level: Evidence from Poland," Business Systems Research, Sciendo, vol. 11(1), pages 73-88, March.
    13. Arbelo-Pérez, Marta & Arbelo, Antonio & Pérez-Gómez, Pilar, 2017. "Impact of quality on estimations of hotel efficiency," Tourism Management, Elsevier, vol. 61(C), pages 200-208.
    14. Pilar Alberca & Laura Parte, 2020. "Efficiency in the Holiday and Other Short-Stay Accommodation Industry," Sustainability, MDPI, vol. 12(22), pages 1-22, November.
    15. George Assaf, A. & Josiassen, Alexander & Woo, Linda & Agbola, Frank W. & Tsionas, Mike, 2017. "Destination characteristics that drive hotel performance: A state-of-the-art global analysis," Tourism Management, Elsevier, vol. 60(C), pages 270-279.
    16. Wasfi Alrawabdeh, 2022. "Seasonal balancing of revenue and demand in hotel industry: the case of Dubai City," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(1), pages 36-49, February.
    17. Hongbo Zhao & Tianshun Gu & Li Yue & Xiaoman Xu, 2022. "Locational Dynamics of Luxury Hotels in Shanghai Metropolis, China: A Spatial-Temporal Perspective," Land, MDPI, vol. 11(10), pages 1-19, September.
    18. Gil Montant, 2020. "The determinants of the hotel sector revenues: The case of French Polynesia," Tourism Economics, , vol. 26(5), pages 809-829, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hongbo Zhao & Tianshun Gu & Li Yue & Xiaoman Xu, 2022. "Locational Dynamics of Luxury Hotels in Shanghai Metropolis, China: A Spatial-Temporal Perspective," Land, MDPI, vol. 11(10), pages 1-19, September.
    2. Taotao Deng & Chen Gan & Yukun Hu, 2021. "Do hotel business benefit from increased tourist accessibility? Evidence from China’s high-speed railway program," Tourism Economics, , vol. 27(7), pages 1357-1374, November.
    3. Elbanna, Said, 2016. "Managers' autonomy, strategic control, organizational politics and strategic planning effectiveness: An empirical investigation into missing links in the hotel sector," Tourism Management, Elsevier, vol. 52(C), pages 210-220.
    4. Daxin Dong & Xiaowei Xu & Yat Fung Wong, 2019. "Estimating the Impact of Air Pollution on Inbound Tourism in China: An Analysis Based on Regression Discontinuity Design," Sustainability, MDPI, vol. 11(6), pages 1-18, March.
    5. George Assaf, A. & Josiassen, Alexander & Woo, Linda & Agbola, Frank W. & Tsionas, Mike, 2017. "Destination characteristics that drive hotel performance: A state-of-the-art global analysis," Tourism Management, Elsevier, vol. 60(C), pages 270-279.
    6. Patrycjusz Zarębski & Grzegorz Kwiatkowski & Ewa Malchrowicz-Mośko & Ove Oklevik, 2019. "Tourism Investment Gaps in Poland," Sustainability, MDPI, vol. 11(22), pages 1-19, November.
    7. Li, Yanning & Wood, E.H. & Thomas, R., 2017. "Innovation implementation: Harmony and conflict in Chinese modern music festivals," Tourism Management, Elsevier, vol. 63(C), pages 87-99.
    8. Puciato, Daniel, 2016. "Attractiveness of municipalities in South-Western Poland as determinants for hotel chain investments," Tourism Management, Elsevier, vol. 57(C), pages 245-255.
    9. Yu, Xiaojuan & Xu, Honggang, 2016. "Ancient poetry in contemporary Chinese tourism," Tourism Management, Elsevier, vol. 54(C), pages 393-403.
    10. Prageeth Roshan Weerathunga & Chen Xiaofang & Manoj Samarathunga, 2019. "Firm-specific and Contextual Determinants of Sri Lankan Corporate Hotel Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 213-224.
    11. P. R. Weerathunga & Cheng Xiaofang & W. H. M.S. Samarathunga & P. M. B. Jayathilake, 2020. "The Relative Effect of Growth of Economy, Industry Expansion, and Firm-Specific Factors on Corporate Hotel Performance in Sri Lanka," SAGE Open, , vol. 10(2), pages 21582440209, April.
    12. Sharma, Vivek & Bhat, Dada Ab Rouf, 2020. "An empirical study exploring the relationship among human capital innovation, service innovation, competitive advantage and employee productivity in hospitality services," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(2), pages 1-14..
    13. Kusa, Rafał & Suder, Marcin & Duda, Joanna, 2023. "Impact of greening on performance in the hospitality industry: Moderating effect of flexibility and inter-organizational cooperation," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    14. Thomas, Rhodri & Wood, Emma, 2015. "The absorptive capacity of tourism organisations," Annals of Tourism Research, Elsevier, vol. 54(C), pages 84-99.
    15. Kirillova, Ksenia, 2023. "A review of aesthetics research in tourism:," Annals of Tourism Research, Elsevier, vol. 100(C).
    16. Noel Perceval Assogba & Daowei Zhang, 2020. "An Economic Analysis of Tropical Forest Resource Conservation in a Protected Area," Sustainability, MDPI, vol. 12(14), pages 1-12, July.
    17. Adnan Khurshid & Abdur Rauf & Sadia Qayyum & Adrian Cantemir Calin & WenQi Duan, 2023. "Green innovation and carbon emissions: the role of carbon pricing and environmental policies in attaining sustainable development targets of carbon mitigation—evidence from Central-Eastern Europe," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8777-8798, August.
    18. Lin, Zhibin & Vlachos, Ilias, 2018. "An advanced analytical framework for improving customer satisfaction: A case of air passengers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 185-195.
    19. Habibi, Tahereh & Ponedelnik, Alena A. & Yashalova, Natalia N. & Ruban, Dmitry A., 2018. "Urban geoheritage complexity: Evidence of a unique natural resource from Shiraz city in Iran," Resources Policy, Elsevier, vol. 59(C), pages 85-94.
    20. A. George Assaf & Alexander Josiassen & Haemoon Oh, 2016. "Internationalization and hotel performance," Tourism Economics, , vol. 22(3), pages 572-592, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:touman:v:52:y:2016:i:c:p:242-253. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/tourism-management .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.