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Determinants of Firm Survival in the Austrian Accommodation Sector

Author

Listed:
  • Serguei Kaniovski

    (Austrian Institute of Economic Research (WIFO), PO Box 91, 1103 Vienna, Austria)

  • Michael Peneder

    (Austrian Institute of Economic Research (WIFO), PO Box 91, 1103 Vienna, Austria and University of Innsbruck, Tourism and Service Management Unit, Universitätsstraße 15 6020 Innsbruck, Austria)

  • Egon Smeral

Abstract

In this study, the authors use a parametric duration analysis to determine the survival rate of firms in the Austrian accommodation sector. Factors that contribute positively to the survival rate of entrants in the accommodation sector include larger initial size, a large share of young firms and fast market growth. High sunk costs and the location of businesses in major tourist destinations with a distinctive winter and summer season and a relative high average bed utilization rate further improve the odds of survival. The authors find an inverted U-shape hazard function supporting the liability of newness hypothesis. The hazard rate is lower than in the production of other market services but higher than in manufacturing.

Suggested Citation

  • Serguei Kaniovski & Michael Peneder & Egon Smeral, 2008. "Determinants of Firm Survival in the Austrian Accommodation Sector," Tourism Economics, , vol. 14(3), pages 527-543, September.
    • Handle: RePEc:sae:toueco:v:14:y:2008:i:3:p:527-543
    DOI: 10.5367/000000008785633587
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    References listed on IDEAS

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    1. Werner Holzl, 2005. "Tangible and intangible sunk costs and the entry and exit of firms in a small open economy: the case of Austria," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2429-2443.
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    3. Mihir Desai & Paul Gompers & Josh Lerner, 2003. "Institutions, Capital Constraints and Entrepreneurial Firm Dynamics: Evidence from Europe," NBER Working Papers 10165, National Bureau of Economic Research, Inc.
    4. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
    5. M. Thea Sinclair, 1997. "Tourism and Economic Development: A Survey," Studies in Economics 9703, School of Economics, University of Kent.
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    Cited by:

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    2. Filipe B. Caires & Hugo Reis & Paulo M. M. Rodrigues, 2023. "Survival of the fittest: tourism exposure and firm survival," Applied Economics, Taylor & Francis Journals, vol. 55(60), pages 7150-7177, December.
    3. Henry Okwo & Charity Ezenwakwelu & Anthony Igwe & Benedict Imhanrenialena, 2019. "Firm Size and Age mediating the Firm Survival-Hedging Effect: Hayes’ 3-Way Parallel Approach," Sustainability, MDPI, vol. 11(3), pages 1-17, February.
    4. Gémar, Germán & Moniche, Laura & Morales, Antonio J., 2016. "Survival analysis of the Spanish hotel industry," Tourism Management, Elsevier, vol. 54(C), pages 428-438.
    5. Thrane, Christer, 2012. "Analyzing tourists’ length of stay at destinations with survival models: A constructive critique based on a case study," Tourism Management, Elsevier, vol. 33(1), pages 126-132.
    6. Egon Smeral, 2008. "Das österreichische Beherbergungs- und Gaststättenwesen im regionalen Vergleich," WIFO Studies, WIFO, number 33960, January.
    7. Theodore Metaxas & Athanasios Romanopoulos, 2023. "A Literature Review on the Financial Determinants of Hotel Default," JRFM, MDPI, vol. 16(7), pages 1-19, July.
    8. Lijiao Yang & Yishuang Qi & Xinyu Jiang, 2021. "An Investigation of the Initial Recovery Time of Chinese Enterprises Affected by COVID-19 Using an Accelerated Failure Time Model," IJERPH, MDPI, vol. 18(22), pages 1-16, November.
    9. Barros, Carlos Pestana & Butler, Richard & Correia, Antónia, 2010. "The length of stay of golf tourism: A survival analysis," Tourism Management, Elsevier, vol. 31(1), pages 13-21.
    10. Paz Rico Belda & Bernardí Cabrer-Borrás, 2021. "Size and survival of the hospitality industry: The case of Spain," Tourism Economics, , vol. 27(5), pages 933-951, August.

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