Key drivers of the financial performance in the hospitality industry: Barcelona hotel industry

J. Aznar-Alarcón; null Galiana Jorge; J. Sayeras Maspera

Key drivers of the financial performance in the hospitality industry: Barcelona hotel industry

J. Aznar-Alarcón, Galiana Jorge, J. Sayeras Maspera

Esade

Research output: Conference paper › Contribution

Abstract

The hospitality industry is characterized by economic performance being very dependent on demand shocks, the importance of fixed cost and the leverage in this sector are key explanatory factors for this pattern. The rise on the sharing economy in this sector, with Airbnb as a clear exponent of the irruption of new forms of accommodation, can imply important changes in the hospitality industry profitability. Some authors have made a few attempts to explore the effects of rise in accommodation supply by Airbnb in the revenues of the hotel industry. This paper is based in the analysis of 42 hotels in Barcelona, close to 12% of the whole population. The hotels selected are mainly independent hotels and their star category replies the population structure. The changes in revenues from 2008 (the year of Airbnb started its activity) to 2013 has been analyzed according to the correlation (using Spearman correlation and Man-Whitney U test, after considering the lack of normality in the variables considered) with some internal variables: productivity, size, star rating and leverage, these variables have been previously been considered in many empirical studies To include the effect of Airbnb presence the number of Airbnb dwellings not far than 1 kilometer to each hotel has been considered as possible explanatory variable for the change in revenues and the level of profitability measured using the return on equity (ROE). Some interesting results have arisen from this analysis. Location is a significant variable for explain a better performance, as hotels located in main touristic areas have suffered less the massive presence of apartments and rooms supplied in Airbnb. Hotel's profitability also depends on the level of leverage. The star category system doesn't correlate any more with level of profitability, probably because customers have new ways, mainly through the use of internet, to find out other customers opinions and hotels' quality valuation.

Original language	Spanish
Publication status	Published - 29 Jun 2016
Event	12th International Conference on Tourism (ICOT 2016) - Duration: 29 Jun 2016 → 2 Jul 2016

Conference

Conference	12th International Conference on Tourism (ICOT 2016)
Period	29/06/16 → 2/07/16

Cite this

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title = "Key drivers of the financial performance in the hospitality industry: Barcelona hotel industry",

abstract = "The hospitality industry is characterized by economic performance being very dependent on demand shocks, the importance of fixed cost and the leverage in this sector are key explanatory factors for this pattern. The rise on the sharing economy in this sector, with Airbnb as a clear exponent of the irruption of new forms of accommodation, can imply important changes in the hospitality industry profitability. Some authors have made a few attempts to explore the effects of rise in accommodation supply by Airbnb in the revenues of the hotel industry. This paper is based in the analysis of 42 hotels in Barcelona, close to 12% of the whole population. The hotels selected are mainly independent hotels and their star category replies the population structure. The changes in revenues from 2008 (the year of Airbnb started its activity) to 2013 has been analyzed according to the correlation (using Spearman correlation and Man-Whitney U test, after considering the lack of normality in the variables considered) with some internal variables: productivity, size, star rating and leverage, these variables have been previously been considered in many empirical studies To include the effect of Airbnb presence the number of Airbnb dwellings not far than 1 kilometer to each hotel has been considered as possible explanatory variable for the change in revenues and the level of profitability measured using the return on equity (ROE). Some interesting results have arisen from this analysis. Location is a significant variable for explain a better performance, as hotels located in main touristic areas have suffered less the massive presence of apartments and rooms supplied in Airbnb. Hotel's profitability also depends on the level of leverage. The star category system doesn't correlate any more with level of profitability, probably because customers have new ways, mainly through the use of internet, to find out other customers opinions and hotels' quality valuation.",

author = "J. Aznar-Alarc{\'o}n and {Galiana Jorge} and {Sayeras Maspera}, J.",

year = "2016",

month = jun,

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note = "12th International Conference on Tourism (ICOT 2016) ; Conference date: 29-06-2016 Through 02-07-2016",

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TY - CONF

T1 - Key drivers of the financial performance in the hospitality industry: Barcelona hotel industry

AU - Aznar-Alarcón, J.

AU - Galiana Jorge, null

AU - Sayeras Maspera, J.

PY - 2016/6/29

Y1 - 2016/6/29

N2 - The hospitality industry is characterized by economic performance being very dependent on demand shocks, the importance of fixed cost and the leverage in this sector are key explanatory factors for this pattern. The rise on the sharing economy in this sector, with Airbnb as a clear exponent of the irruption of new forms of accommodation, can imply important changes in the hospitality industry profitability. Some authors have made a few attempts to explore the effects of rise in accommodation supply by Airbnb in the revenues of the hotel industry. This paper is based in the analysis of 42 hotels in Barcelona, close to 12% of the whole population. The hotels selected are mainly independent hotels and their star category replies the population structure. The changes in revenues from 2008 (the year of Airbnb started its activity) to 2013 has been analyzed according to the correlation (using Spearman correlation and Man-Whitney U test, after considering the lack of normality in the variables considered) with some internal variables: productivity, size, star rating and leverage, these variables have been previously been considered in many empirical studies To include the effect of Airbnb presence the number of Airbnb dwellings not far than 1 kilometer to each hotel has been considered as possible explanatory variable for the change in revenues and the level of profitability measured using the return on equity (ROE). Some interesting results have arisen from this analysis. Location is a significant variable for explain a better performance, as hotels located in main touristic areas have suffered less the massive presence of apartments and rooms supplied in Airbnb. Hotel's profitability also depends on the level of leverage. The star category system doesn't correlate any more with level of profitability, probably because customers have new ways, mainly through the use of internet, to find out other customers opinions and hotels' quality valuation.

AB - The hospitality industry is characterized by economic performance being very dependent on demand shocks, the importance of fixed cost and the leverage in this sector are key explanatory factors for this pattern. The rise on the sharing economy in this sector, with Airbnb as a clear exponent of the irruption of new forms of accommodation, can imply important changes in the hospitality industry profitability. Some authors have made a few attempts to explore the effects of rise in accommodation supply by Airbnb in the revenues of the hotel industry. This paper is based in the analysis of 42 hotels in Barcelona, close to 12% of the whole population. The hotels selected are mainly independent hotels and their star category replies the population structure. The changes in revenues from 2008 (the year of Airbnb started its activity) to 2013 has been analyzed according to the correlation (using Spearman correlation and Man-Whitney U test, after considering the lack of normality in the variables considered) with some internal variables: productivity, size, star rating and leverage, these variables have been previously been considered in many empirical studies To include the effect of Airbnb presence the number of Airbnb dwellings not far than 1 kilometer to each hotel has been considered as possible explanatory variable for the change in revenues and the level of profitability measured using the return on equity (ROE). Some interesting results have arisen from this analysis. Location is a significant variable for explain a better performance, as hotels located in main touristic areas have suffered less the massive presence of apartments and rooms supplied in Airbnb. Hotel's profitability also depends on the level of leverage. The star category system doesn't correlate any more with level of profitability, probably because customers have new ways, mainly through the use of internet, to find out other customers opinions and hotels' quality valuation.

M3 - Contribución

T2 - 12th International Conference on Tourism (ICOT 2016)

Y2 - 29 June 2016 through 2 July 2016

ER -