Publicação

Comparison of financial performance between branded and nonbranded hotel companies using composite indicator

Ver documento

Detalhes bibliográficos
Resumo:The Hospitality industry is one of the main sectors of tourism activity, being important to assess the performance of the hotel companies. The aim of the present paper is to study the financial performance of 570 companies operating hotel units in Portugal, in 2017, allowing for comparison among companies with similar stars rating and market orientation to explore the question of branded and non-branded affiliation. This issue is studied using a methodology based on Data Envelopment Analysis to assess the overall performance for each company. The hotel company performance is assessed through the aggregation of multiple financial indicators using the composite indicator derived from the DEA model. The empirical results show that the hotel branded companies have, on average, significantly, higher overall financial performance than hotel non-branded companies. Although, the best practices are observed in hotel branded and non-branded companies. This analysis can support the strategic decision process of the hotel companies in choosing to operate independently or selecting a brand affiliation.
Autores principais:Martins, Catarina Antónia
Outros Autores:Vaz, Clara B.; Alves, Jorge
Assunto:Hotel companies Financial performance Branded and non-branded affiliation Data envelopment analysis
Ano:2019
País:Portugal
Tipo de documento:comunicação em conferência
Tipo de acesso:acesso restrito
Instituição associada:Instituto Politécnico de Bragança
Idioma:inglês
Origem:Biblioteca Digital do IPB
Descrição
Resumo:The Hospitality industry is one of the main sectors of tourism activity, being important to assess the performance of the hotel companies. The aim of the present paper is to study the financial performance of 570 companies operating hotel units in Portugal, in 2017, allowing for comparison among companies with similar stars rating and market orientation to explore the question of branded and non-branded affiliation. This issue is studied using a methodology based on Data Envelopment Analysis to assess the overall performance for each company. The hotel company performance is assessed through the aggregation of multiple financial indicators using the composite indicator derived from the DEA model. The empirical results show that the hotel branded companies have, on average, significantly, higher overall financial performance than hotel non-branded companies. Although, the best practices are observed in hotel branded and non-branded companies. This analysis can support the strategic decision process of the hotel companies in choosing to operate independently or selecting a brand affiliation.