Destination Characteristics that Drive Hotel Performance: A State-of-the-Art Global Analysis

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

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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.
Original languageEnglish
JournalTourism Management
Volume60
Pages (from-to)270–279
Number of pages10
ISSN0261-5177
DOIs
Publication statusPublished - Jun 2017

Keywords

  • Determinants of hotel performance
  • Tourism destinations
  • International hotel operators
  • Sales per room
  • Sales per outlet

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