How is the hospitality and tourism industry different? An empirical test of some structural characteristics

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 ot...

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Bibliographic Details
Published in:International journal of hospitality management 2015-05, Vol.47, p.116-119
Main Author: Singal, Manisha
Format: Article
Language:English
Subjects:
Capital intensity
Competition
Hospitality firms
Industry-structure
Leverage
Risk
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Summary: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.
ISSN:0278-4319
1873-4693
DOI:10.1016/j.ijhm.2015.03.006