Financial performance of Spanish hotels during the crisis

Babayan, Narine; Dáros, Lourdes Canós; Santandreu-Mascarell, Cristina

doi:10.4995/wpom.v5i1.2082

Cited by 4 publications

(3 citation statements)

References 21 publications

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“…Chain size is often measured via the number of employees hired or the number of establishments in the chain, while hotel size is often measured by the number of rooms. The evidence found in the literature regarding hotel size and performance is not completely clear, although several studies have suggested that larger, individual hotels can achieve higher levels of performance due to economies of scale, higher bargaining power and more possibilities of funding and investment; see, e.g., Claver et al (2007a, b), Kim et al (2013) and Babayan et al (2014). and Arbelo et al (2018) report evidence that large chain hotels achieved a better performance than small, independent hotels.…”

Section: Working Hypothesesmentioning

confidence: 99%

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Efficiency evaluation of hotel chains: a Spanish case study

Deng

Veiga

Wiper

2019

SERIEs

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The tourism industry, in particular the hotel sector, is a highly competitive market. In this context, it is important that an hotel chain operates efficiently if it wants to improve or maintain its market position. The objective of this work is to compare the relative efficiency of hotel chains operating in Spain. To do this, we have designed a stochastic frontier model to measure revenue efficiency as a function of various different inputs such as total staff or number of rooms. Given that chains vary considerably in size, both inputs and outputs are normalized by an appropriate size measure. In contrast to most previous work, we account for heterogeneity in hotel chains by introducing relevant variables, such as the proportion of hotels in the chain with three stars or fewer, into the efficiency term of the stochastic frontier model. Our results suggest that in the Spanish case, in the period of the economic crisis, hotel chains increase overall revenue by investing in fewer, big hotels rather than more, small hotels. Furthermore, in terms of revenue efficiency, it appears better for hotel chains to invest in hotels of three or fewer stars than in higher star rated hotels. Finally, there is no clear evidence of a relationship between the size of a hotel chain and its efficiency.

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Section: Working Hypothesesmentioning

confidence: 99%

“…and Arbelo et al (2018) report evidence that large chain hotels achieved a better performance than small, independent hotels. Also, Babayan et al (2014) show that the size of a hotel positively affects the total revenue and that establishments with less than one hundred rooms do not seem to manage their assets so well.…”

Section: Working Hypothesesmentioning

confidence: 99%

Efficiency evaluation of hotel chains: a Spanish case study

Deng

Veiga

Wiper

2019

SERIEs

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“…Occupancy levels and achieved average room rates grew steadily, and gross operating profit per available room more than tripled between 2009 and 2017 from €7,514 to 24,320 according to the MHRA (2018) and MHRA (2010). Hotels in similar tourism destinations, such as the Spanish Costas in the Alicante region, only experienced minor improvement during the same period (Babayan et al , 2014). The difference in improvement rate is presented in Table II.…”

Section: Research Backgroundmentioning

confidence: 99%

Do five-star hotel managers know their customers’ priorities? An AHP-Prioritised scorecard study

Ishizaka

Quintano

Labib

et al. 2019

EMJB

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Purpose Regular surveys by the Malta Hotels & Restaurants Association indicate a substantial improvement in the financial performance of five-star hotels in Malta in recent years. Therefore, the purpose of this paper is to investigate if this positive performance is primarily due to customer centricity by management. Design/methodology/approach The assessment is based on the findings of a quantitative study that compared the results of a demand side (customer survey) with those of a supply side (management survey). In total, 24 decision-choice criteria were framed within the four perspectives (financial, customer, internal process and employee learning/growth) of the balanced scorecard. Actual and potential customers of five-star hotels and hotel managers were asked to rank the decision-choice criteria and the balanced scorecard perspectives. The multi-criteria decision analysis was carried out by means of the AHP. Findings The study showed that managers in the five-star hospitality sector in Malta are in harmony with customer expectations given the strong positive correlation between the results of the customer and management surveys. Research limitations/implications This research is limited to the island of Malta but can be easily replicated for other touristic destinations. Practical implications This study has implication for hospitality customers, hotel managers and policy makers to help them to identify weak areas of hotel performance and improve them. Originality/value The paper has developed a Prioritised scorecard, a new hybrid balanced scorecard and AHP. Targets are therefore prioritised, which allow a better allocation of scarce resources.

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Determinants of Profitability in the Tourism Sector in Portugal

Travanca

Vieira

Fėlix

2022

Tourism Entrepreneurship in Portugal and Spain

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This paper examines the impact on the profitability of firms in the Portuguese tourism sector of both internal (size, age, growth, debt) and external (real GDP growth rate, sovereign debt crisis, location) determinants. Panel data models have been employed on a large sample of small-and medium-sized firms, from 2009 to 2017, a period critically influenced by both the financial and the ensuing sovereign debt crisis in the southern European countries. Alternative profitability measures have been used and the results have been largely robust to the distinct models' specifications. The results suggested that profitability is positively affected by firm's size and age and by economic real growth rates, and negatively influenced by the firm's indebtedness ratio and the sovereign debt crisis. Firms in the main tourism regions are generally more profitable, and relatively less affected by the sovereign debt crisis, that was particularly harmful to micro-size firms. IntroductionPortugal is currently one of the major tourism destinations in the world. The country's tourism industry has considerably developed since the 1990s, in a conscious internal effort to develop this strategic sector, partly aided by political instability in some more traditional touristic sites and also by numerous international awards that contributed to an increased visibility and attractiveness. The World Tourism Organization, a specialized agency of the United Nations, with

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Financial performance of Spanish hotels during the crisis

Abstract: Abstract

Cited by 4 publications

References 21 publications

Efficiency evaluation of hotel chains: a Spanish case study

Efficiency evaluation of hotel chains: a Spanish case study

Do five-star hotel managers know their customers’ priorities? An AHP-Prioritised scorecard study

Determinants of Profitability in the Tourism Sector in Portugal

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