Comparing chains versus independent hotels based on international sales: an exploratory study

Abstract

The globalization of tourism has recently increased the importance of foreign demand for most European destinations. Hotel chains have been long investigated from several perspectives. However, no research has verified the alleged ability of chains to attract foreign demand, while this information is highly sought after by hotel investors and owners when evaluating affiliation opportunities. The present study covers Italy. It is based on a survey of 148 branded hotels for 21 destinations and 22 brands. Adopting a new metric to compare the ability of hotels to sell abroad (Foreign market Per Available Room; FmPAR), it has been found that chain-affiliated hotels perform better than independent hotels in attracting foreign demand. This is particularly true for international chains compared to domestic ones. On the other hand, the effect is stronger in three-star hotels than in four and five-star ones, in destinations where chain penetration is low.

Tourism-led economic growth in Montenegro and Slovenia

“…As an intrinsic part of economics, tourism plays an important role throughout Mediterranean countries (Malec & Abrh am, 2016;Ribaudo et al, 2020). In a time of overwhelmed economic activity measured by growth in gross domestic product (GDP) following 2015, this consequently induced rapid economic growth.…”

Proceedings of the 17th International Research Symposium on Service Excellence in Management - QUIS17

“…Hotels that belong to a hotel chain can enhance the effect of dynamic capabilities on different hotel innovation, or achieve greater services, process and management innovation developing the same dynamic capabilities. This could be explained since hotel chain belongs routines and more resources to management the dynamic capabilities and its outcomes (Costa and Pereira, 2020;Ribaudo et al, 2020).…”

“…In the case of the hotel industry, there is one notable characteristic of its own, and that is the fact that belonging to hotel chains influences the propensity to innovate in the accommodation services activity (Orfila-Sintes et al, 2005). Hotels that are affiliated to a hotel chain are managed differently from those that are considered independent (Ribaudo et al, 2020) and therefore several authors highlighted the importance of addressing the study of the influence of hotel chains on business management (Jones, 1999), and on innovation management decisions (Orfila-Sintes et al, 2005). However, the absence of research addressing the question of whether chain-affiliated and independently operated service companies have different approaches to developing successful innovations (Ottenbacher et al, 2008), whether the deployment of organizational capabilities influences the implementation of innovations differently, has been claimed to be lacking.…”

“…Simultaneously, as drivers of innovation in the hospitality industry have been addressed in recent years (Backman et al, 2017), hotel chains have long been the subject of study from various perspectives (Ribaudo et al, 2020;O'Neill and Carlbäckb, 2011). However, we consider it essential to understand the moderating effect that hotel chain membership can exert on the deployment of resources and capabilities and the development of hotel innovations, since innovation has been considered a strategic weapon for both successful chains and independent hospitality enterprises (Ottenbacher et al, 2006).…”

Comparative study: International chain and local chain hotel COVID-19 readiness strategies in Indonesia

“…International chain hotels and local chains have a different approach to readiness strategies, which brings into the differentiation of how the guest will be satisfied. In general, guest attachment to an international hotel brand brings more international demand, meanwhile local hotel chains are considered for their adaptability to local business conditions (Ribaudo, Moccia, Orero-Blat, & Palacios-Marqués, 2020). Previous research on the effects of COVID-19 readiness strategies at F&B stores in Jakarta found that customer satisfaction mediates the relationship between store readiness and the creation of trust.…”