EconPapers    
Economics at your fingertips  
 

Product diversification and property performance in the urban lodging market: The relationship and its moderators

Yang Yang, Yang Cao and Yang, Li-Ting (Grace)

Tourism Management, 2017, vol. 59, issue C, 363-375

Abstract: In this study, we investigate the relationship between product diversification and hotel property performance as well as the moderators of this relationship in the urban lodging market. Using stochastic frontier analysis with panel data, we calibrate the efficiency scores of 377 urban hotels in Beijing from 1994 to 2005. We then investigate the impact of product diversification on performance as measured by efficiency score. Results from panel data models indicate that the degree of product diversification exhibits a positive relationship with hotel performance. Hotel location, diversification expansion rate, and foreign ownership/operation are found to be significant moderating factors determining the effect of product diversification. Specifically, hotels that (a) are located farther from the city center, (b) expand diversification more slowly, and (c) are domestically owned are more likely to leverage the benefits stemming from product diversification. We provide a series of practical evaluation modules to help hoteliers improve performance.

Keywords: Product diversification; Hotel performance; Stochastic frontier analysis; Diversification expansion rate; Hotel location (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261517716301595

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:touman:v:59:y:2017:i:c:p:363-375

DOI: 10.1016/j.tourman.2016.08.018

Access Statistics for this article

Tourism Management is currently edited by Chris Ryan

More articles in Tourism Management from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-05-02
Handle: RePEc:eee:touman:v:59:y:2017:i:c:p:363-375