Organizational Form and Performance: Evidence from the Hotel Industry

Renáta Kosová, Francine Lafontaine () and Rozenn Perrigot
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Renáta Kosová: Cornell University

The Review of Economics and Statistics, 2013, vol. 95, issue 4, 1303-1323

Abstract: We use a unique proprietary panel data set from a large hotel company to study how organizational form affects hotel pricing and performance. Aggregate data patterns suggest sizable performance differences between franchised and company-operated hotels. However, after controlling for other factors, we find that if significant at all, such differences are economically small. Moreover, once we endogenize the choice of organizational form, the differences become insignificant. We conclude that the company chooses which hotels to franchise and operate corporately such that, conditional on hotel and market characteristics, it obtains consistent outcomes across organizational forms. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Keywords: hotel pricing; hotel performance; organizational form (search for similar items in EconPapers)
JEL-codes: C33 D2 L2 L8 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (43)

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Working Paper: Organizational Form and Performance: Evidence from the Hotel Industry (2013)
Working Paper: Organizational Form and Performance: Evidence from the Hotel Industry (2008)
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