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Critical External Factors behind Hotels' Investments in Innovation and Technology in Emerging Urban Destinations

Author

Listed:
  • Juan Ignacio Pulido Fernández

    (Department of Economics, University of Jaén, Campus de Las Lagunillas, s/n, 23071 Jaén, Spain)

  • Antonia Sáez Cala

    (Department of Economic Structure and Development Economics, Autonomous University of Madrid, Campus de Cantoblanco, 28049 Madrid, Spain)

  • Cristina Figueroa Domecq

    (Department of Enterprise Economics, Rey Juan Carlos University, Paseo de los Artilleros, s/n, 28032 Vicálvaro, Madrid, Spain)

Abstract

The decision-making processes of tourism firms are being conditioned by the profound transformations taking place in both client demand and destination dynamics. This new scenario requires an increased level of information, innovation and technology if tourism firms are to remain competitive. In particular, information and communication technologies (ICTs) can provide competitive advantages by improving a firm's knowledge of its own internal structures and of the milieu in which it is operating. This study therefore identifies and analyses the critical external factors that influence innovation and ICT investment in hotel businesses by evaluating the impact of hotel investment strategies. The methodological approach taken is an adaptation of the PESTEL model to the particular case of hotel management. This model identifies the factors (political, economic, social, environmental, technological and legal) that affect any given organization. The authors also apply Porter's ‘five forces model’, which assesses the competitive environment in which firms act, taking into account the power of buyers, intermediaries, current and potential competitors and substitutive products. The study area is the region of Madrid (MAC), since this has only lately emerged as a major tourist destination and its hotel market is recent and of medium to high quality.

Suggested Citation

  • Juan Ignacio Pulido Fernández & Antonia Sáez Cala & Cristina Figueroa Domecq, 2011. "Critical External Factors behind Hotels' Investments in Innovation and Technology in Emerging Urban Destinations," Tourism Economics, , vol. 17(2), pages 339-357, April.
    • Handle: RePEc:sae:toueco:v:17:y:2011:i:2:p:339-357
    DOI: 10.5367/te.2011.0033
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    References listed on IDEAS

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    1. ANITA M. McGAHAN & MICHAEL E. PORTER, 1997. "How Much Does Industry Matter, Really?," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 15-30, July.
    2. Douglas G. Pearce, 1996. "Regional tourist organizations in Spain: emergence, policies and consequences," Tourism Economics, , vol. 2(2), pages 119-136, June.
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    Cited by:

    1. Pin-Ju Juan & Shin-Yi Lin, 2013. "Selecting Resort Locations," Tourism Economics, , vol. 19(6), pages 1249-1272, December.
    2. Marian Stuiver & Katrine Soma & Phoebe Koundouri & Sander Van den Burg & Alwin Gerritsen & Thorbjørn Harkamp & Niels Dalsgaard & Fabio Zagonari & Raul Guanche & Jan-Joost Schouten & Saskia Hommes & Am, 2016. "The Governance of Multi-Use Platforms at Sea for Energy Production and Aquaculture: Challenges for Policy Makers in European Seas," Sustainability, MDPI, vol. 8(4), pages 1-19, April.
    3. VGR Chandran & Tariq Ahmed & Fedwa Jebli & Alexander Josiassen & Eva Lang, 2024. "Developing innovation capability in the hotel industry, who and what is important? A mixed methods approach," Tourism Economics, , vol. 30(3), pages 728-748, May.
    4. Krzysztof Borodako & Jadwiga Berbeka & Michał Rudnicki, 2014. "The Potential of Local KIBS Companies as a Determinant of Tourism Development in Krakow," Tourism Economics, , vol. 20(6), pages 1337-1348, December.
    5. Diego R. Medina-Muñoz & Rita D. Medina-Muñoz & Alexander Zúñiga-Collazos, 2013. "Tourism and Innovation in China and Spain: A Review of Innovation Research on Tourism," Tourism Economics, , vol. 19(2), pages 319-337, April.
    6. Mert Gürlek & Muharrem Tuna, 2018. "Reinforcing competitive advantage through green organizational culture and green innovation," The Service Industries Journal, Taylor & Francis Journals, vol. 38(7-8), pages 467-491, June.
    7. Sergey P. Kazakov & Marina D. Predvoditeleva, 2015. "How Travelers Use Online and Social Media Channels to Make Hotel Choice Decisions. A Comparative Study of Russian Federation and American Tourists’ Online Consumer Behavior," HSE Working papers WP BRP 44/MAN/2015, National Research University Higher School of Economics.

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