How Is the Hospitality and Tourism Industry Different? An Empirical Test of Some Structural Characteristics
International Journal of Hospitality Management. Volume 47, May 2015, Pages 116-119 DOI/10.1016/j.ijhm.2015.03.006
Posted: 16 Jan 2020
Date Written: May 1, 2015
Structural characteristics, such as competition, risk, leverage and capital intensity, directly impact the strategic management of firms operating within an industry. We provide an empirical test and formally compare the structural characteristics of the hospitality and tourism (HT) industry with other industries. Our results, based on a sample of firms from the S&P 1500 index over 21 years, show that the HT industry has higher leverage, higher risk, higher capital intensity and higher competitive rivalry than other industries in the U.S. economy. The formal identification and recognition of these differences provides justification for using the HT industry as a context for testing business theories, and can explain differences in decision-making and firm outcomes such as financial and social performance, as well as efficiency, growth, and survival of HT firms.
Keywords: Competition, Capital intensity, Leverage, Risk, Industry-structure, Hospitality firms
JEL Classification: L83, L16, L25, G34
Suggested Citation: Suggested Citation