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Competition in the international hotel industry

Competition in the international hotel industry To identify rivals in the international hotel industry, current practice is to use price, segment and proximity. Using price and segment to identify rivals can be problematic due to price discounting. Additionally, a clear way to measure proximity does not exist. The aim of this study is to develop a process which managers can use to accurately identify rivals. Network analysis and affiliation matrices, in particular, are used to show managers a simple, systematic way to quantify proximity. Affiliation matrices give managers a simple, numeric value to distinguish between primary and secondary competitors. Managers should also compare chains on other competitive dimensions to distinguish their relative competitive threat. Results suggest there will be more than one competitive dimension to distinguish between rivals. At times, international experience is a relevant competitive dimension; at other times, nationality is a relevant competitive dimension. Size, however, is very rarely a relevant competitive dimension. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Contemporary Hospitality Management Emerald Publishing

Competition in the international hotel industry

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Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
0959-6119
DOI
10.1108/09596110010309916
Publisher site
See Article on Publisher Site

Abstract

To identify rivals in the international hotel industry, current practice is to use price, segment and proximity. Using price and segment to identify rivals can be problematic due to price discounting. Additionally, a clear way to measure proximity does not exist. The aim of this study is to develop a process which managers can use to accurately identify rivals. Network analysis and affiliation matrices, in particular, are used to show managers a simple, systematic way to quantify proximity. Affiliation matrices give managers a simple, numeric value to distinguish between primary and secondary competitors. Managers should also compare chains on other competitive dimensions to distinguish their relative competitive threat. Results suggest there will be more than one competitive dimension to distinguish between rivals. At times, international experience is a relevant competitive dimension; at other times, nationality is a relevant competitive dimension. Size, however, is very rarely a relevant competitive dimension.

Journal

International Journal of Contemporary Hospitality ManagementEmerald Publishing

Published: Apr 1, 2000

Keywords: Competitive strategy; Hotels

References