The effects of industrial trends, diversification strategy and corporate policies on the operating performance of international tourist hotels
by Chen-Chi Lou; Tian-Shyug Lee; Yen-Chen Wang
International Journal of Leisure and Tourism Marketing (IJLTM), Vol. 3, No. 1, 2012

Abstract: This study uses scale (average number of rooms) and pricing (average room rate) as variables to separate sample hotels into four strategic groups. We use variables related to the business cycle and industrial trends and proxy variables for diversification strategy and corporate policies to perform a panel data regression that explores their effects on the operating performance (using occupancy rate as an indicator) of international tourist hotels in each strategic group. We find that the business cycle, industrial trends, marketing policy and diversification are important decision variables for CEOs of international tourist hotels in Taipei City. The study has two strategic implications for hotel management: first, international tourist hotels can use a differentiation strategy to avoid price competition and enhance their operating performance; second, such hotels should focus on their core business of room rentals and food and beverage service since a diversification strategy decreases the occupancy rate.

Online publication date: Sun, 08-Apr-2012

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Leisure and Tourism Marketing (IJLTM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com