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Where Should I Locate My Hotel? An In-Depth Analysis of the Cluster Effect on Hotel Performance

  • Angel Peiró-Signes
  • Marival Segarra-Oña
  • Rohit Verma
  • Luis Miret-Pastor
Chapter
Part of the Advances in Spatial Science book series (ADVSPATIAL)

Abstract

In this paper we analyse economic data over a period of 5 years from the Smith Travel Research (STR) database using an event study technique to compare economic performance among a total of 27,207 hotels, 4339 of them located in US touristic clusters. The aim of the research is to determine if the cluster effect is affecting the economic performance of hotels. Hotels are segmented and compared to similar groups in terms of revenue, scale, location, and affiliation, and then each of the hotels within a touristic cluster is compared to a similar group of outside-cluster hotels. Though the mean values for economic performance are higher than those properties located in clusters, specific analysis suggests that the cluster effect is not affecting all the hotels in the same way and that property level influences the economic performance of hotels within a touristic cluster.

Keywords

US touristic clusters Cluster effect Hotels’ economic performance Event studies Location 

Notes

Acknowledgement

The authors would like to thank the Center for Hospitality Research at Cornell University that hosted A. Peiró and M. Segarra as visiting scholars and Donald Schnedeker from the Nestle library at the School of Hotel Administration at Cornell University.

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Angel Peiró-Signes
    • 1
  • Marival Segarra-Oña
    • 1
  • Rohit Verma
    • 2
  • Luis Miret-Pastor
    • 3
  1. 1.Management DepartmentUniversitat Politècnica de ValènciaValenciaSpain
  2. 2.Cornell UniversityIthacaUSA
  3. 3.Social Sciences DepartmentUniversitat Politècnica de València, Campus de GandiaValenciaSpain

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