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Destination characteristics that drive hotel performance: A state-of-the-art global analysis

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  • George Assaf, A.
  • Josiassen, Alexander
  • Woo, Linda
  • Agbola, Frank W.
  • Tsionas, Mike

Abstract

The increased market saturation and competition in both domestic and international tourism destinations have renewed interest among hotel operators in identifying the key drivers of hotel performance. This paper presents a comprehensive analysis of the determinants of hotel performance and their relative importance across multiple tourist destinations. We employ a two-step estimation method to identify key determinants of hotel performance, using a rich sample of international hotels. Our empirical analyses show that the main drivers of hotel performance are the quality of the educational system, government support, disposable income, and number of international arrivals within a tourism destination. Results indicate that the most important barriers to hotel performance are the competition among accommodation providers, tax rate and fuel price. We argue for the need for hotel providers to develop strategies that take cognisance of the key drivers and barriers to enhancing hotel performance in an ever-changing global tourism sector.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:touman:v:60:y:2017:i:c:p:270-279
    DOI: 10.1016/j.tourman.2016.12.010
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    Cited by:

    1. Baggio, Rodolfo, 2020. "Tourism destinations: A universality conjecture based on network science," Annals of Tourism Research, Elsevier, vol. 82(C).
    2. 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.
    3. Simona Franzoni & Cristian Pelizzari, 2021. "Rainfall option impact on profits of the hospitality industry through scenario correlation and copulas," Annals of Operations Research, Springer, vol. 299(1), pages 939-962, April.
    4. Calvo, Elena & Tapia, Javier & Albisu, Pablo, 2022. "Estrategia de fijación de precios en la industria hotelera. El caso del hotel Tryp Atocha Madrid [Pricing strategy in the hotel industry. The case of the hotel Tryp Atocha Madrid]," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 34(1), pages 263-280, December.
    5. Ante Mandić & Elza Jurun, 2018. "The Determinants of Small and Family Owned Hotel Room Rates," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 11(2), pages 17-22, September.
    6. Pilar Alberca & Laura Parte, 2020. "Efficiency in the Holiday and Other Short-Stay Accommodation Industry," Sustainability, MDPI, vol. 12(22), pages 1-22, November.
    7. Michael L Polemis & Panayiotis Tzeremes & Nickolaos G Tzeremes, 2023. "Hotels’ occupancy rates and convergence: Empirical evidence from the first pandemic wave," Tourism Economics, , vol. 29(2), pages 533-542, March.
    8. Lucie Severová & Karel Šrédl & Marie Prášilová & Roman Svoboda & Alexandr Soukup & Marek Dvořák & Jitka Prachařová, 2021. "Change in the Structure of the Accommodation Capacity of the Czech Hotel Industry under Conditions of Economic Globalization," Sustainability, MDPI, vol. 13(16), pages 1-24, August.

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