Moderating the impact of e-commerce expenses on financial performance in US upper upscale hotels

Agnes L. DeFranco, Cristian Morosan and Nan Hua
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Agnes L. DeFranco: University of Houston, USA
Cristian Morosan: University of Houston, USA
Nan Hua: University of Central Florida, USA

Tourism Economics, 2017, vol. 23, issue 2, 429-447

Abstract: The heavily fragmented hotel industry, embracing the changes in their guests’ use of electronic devices, has spent considerable resources to incorporate electronic commerce (e-commerce) practices. The extant literature offers inconclusive findings with regard to the effect of e-commerce on firm performance, especially when firm size is considered. Given the high fragmentation of size in the hotel industry, understanding its role in the deployment of e-commerce could result in substantial benefits for both hotel firms and consumers. Using the financial performance of 689 observations of over 110 hotels during 2007–2012, this study finds that e-commerce expenses positively impact firm performance, and that firm size moderates the relationship between e-commerce expenses and firm performance.

Keywords: e-commerce; economies of scale; financial performance; hotel performance; marketing expenses (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:23:y:2017:i:2:p:429-447

DOI: 10.5367/te.2015.0510

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