Determinants of Hotel Chains’ Market Presence in a Destination – A Global Study

Tourism, 65(1), 7-32

26 Pages Posted: 4 Apr 2017

See all articles by Stanislav Hristov Ivanov

Stanislav Hristov Ivanov

Varna University of Management (VUM); Zangador

Maya G. Ivanova

Zangador Ltd.; Varna University of Management (VUM)

Date Written: April 1, 2017

Abstract

The paper examines the host country-specific factors as determinants of hotel chains’ market presence in a destination. Three types of hotel chains’ market presence are identified – absolute market presence (number of chain affiliated hotels/rooms), relative market presence (share of affiliated hotels/rooms in the total number of hotels/rooms in a destination) and market presence intensity (number of affiliated hotels/rooms per 1000 people). The impact of the following country-specific factors on hotel chains’ market presence is investigated: size of hotel industry, average capacity of hotels, size of tourism sector, importance of tourism for the economy, population size, economy size, wealth of local population, level of globalisation, destination competitiveness, human development, geographic location, least developed country status and OECD membership. The sample includes 116 countries. We find that the factors of country choice that prior literature has identified as important on micro (company) level, are not necessarily valid on macro (industry) level. Results show that on macro level the hotel chains’ market presence is influenced significantly only by few factors – size of hotel industry, average capacity of hotels and geographic location of a country. Managerial implication, limitations and future research directions are also discussed.

Keywords: hotel chains, market presence, locational factors, market entry, macroenvironmental factors, country-specific factors

Suggested Citation

Ivanov, Stanislav Hristov and Ivanova, Maya G., Determinants of Hotel Chains’ Market Presence in a Destination – A Global Study (April 1, 2017). Tourism, 65(1), 7-32. Available at SSRN: https://ssrn.com/abstract=2944884

Stanislav Hristov Ivanov (Contact Author)

Varna University of Management (VUM) ( email )

13 Oborishte Street
Varna, 9000
Bulgaria
+359 898 680713 (Phone)

HOME PAGE: http://www.vumk.eu

Zangador ( email )

Varna, 9010
Bulgaria

HOME PAGE: http://www.zangador.eu

Maya G. Ivanova

Zangador Ltd. ( email )

Varna, 9010
Bulgaria

Varna University of Management (VUM) ( email )

13A Oborishte Street
Varna, 9000
Bulgaria

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