How do hotel characteristics moderate the impact of COVID-19 on hotel performance? Evidence from Taiwan

Yu-Chen Lin and Chiang-Ming Chen

Current Issues in Tourism, 2022, vol. 25, issue 8, 1192-1197

Abstract: It has been known that the COVID-19 pandemic severely damaged the hotel industry. However, it is not clear whether hotels with different characteristics are affected equally. Using data collected from the hospitality industry in Taiwan and panel data estimation methods, we examine whether different hotel characteristics moderate the impact of the COVID-19 pandemic on hotel performance. We contribute to the literature by explicitly identifying different hotel characteristics as moderating factors for the effect of COVID-19 on hotel performance. Specifically, we find that international tourist hotels with high product varieties and five-star hotels suffered a greater loss in revenue than other types of hotels while hotels located in scenic areas and international chain hotels were less affected. An important managerial implication is that among various quarantine and hygiene measures adopted by hoteliers to fight or contain the pandemic, putting emphasis on social distancing and hygiene measures is particularly important for hoteliers to regain confidence from their customers.

Date: 2022
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DOI: 10.1080/13683500.2021.1910213

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