Hierarchical Structure of the Internationalized Spanish Hotel Industry
Tourism Management, Vol. 31, No. 1, pp. 57-73, 2010
19 Pages Posted: 6 Feb 2008 Last revised: 18 Jun 2011
Date Written: Febraury 2008
In this paper we empirically analyze the phenomena of indebtedness of the main companies belonging to the Spanish hotel industry. In particular, we introduce a method to analyze the structure and dynamics of the largest companies in this sector. The method combines the Pearson correlation coefficient with the nearest neighbor single linkage clustering algorithm (Mantegna, 1999). Pearson correlation coefficient allows to obtain a metric distance between two different multidimensional time series that is used to construct a Minimal Spanning Tree. From this tree we can compute an ultrametric distance that is used to derive the Hierarchical Tree. From the analysis of time series data of companies included in the SABI Iberian Balance Sheet Analysis System, we derive a hierarchical organization of the Spanish hotels. In particular, we detect different dynamic clusters of companies which correspond with their common production and indebtedness strategies. The obtained classification of companies can also be used to study deep relationships among this branch of tourisms activities.
Keywords: Minimal Spanning Tree, Cluster Analysis, Financing decisions, Indebtedness, Hotel industry
JEL Classification: C10, C14, G10
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