Do Hotels Benefit from Hosting IIHF World Championships?

Abstract

This paper focuses on the impact of hosting of IIHF World Championship on the local hotel market using the case of Prague (IIHF World Championship 2015) and Bratislava (IIHF World Championship 2011). Many previous studies were focused on the impact of hosting mega sports and cultural events on destination perception and visit rate during and after the event, perception of hosting these events by residents or the effect on the local economy. Using unique daily empirical data collected from 95 Prague hotels and 25 Bratislava hotels, key findings of this study show lack of long-run positive impact but a high short-run (immediate) effect. In the case of Prague, the main increase of market performance can be identified during the final stage of the tournament, mainly in selling room rates; for Bratislava, the significant effect was determined during the whole tournament, and the entire market never reached the same level of performance. The study shows the need to examine these effects further, emphasizing more variables like seasonality and market segmentation, revenue management, and destination management.

The Effect of UEFA Club Competitions on the Local Hospitality Performance

“…Another aspect of the impact is in the competing clubs, where the more popular the opponents are, the higher the impact on the local hospitality market might be. [11] Similarly to several studies [20], [21], [22], the effect of hosting the finals of the UEFA competitions was perceived mainly during the days before and during the event. Compared to performance in upcoming years, the hospitality market faced decline in interest and performance or was not significantly better than in the other periods of the year.…”

“…Previously mentioned studies focused mainly on the longitudinal events, where the interest of this research is in the significant one-day events (the final of the tournaments and championships). The previously mentioned study focusing on the IIHF World Championship hosted by Prague showcases the effect only during the final stage of the competition, where group stages brought no extra increase in hospitality performance [21].…”

“…To evaluate the performance of the hospitality market, the study adopted STR data shared via the STR Share Center. The studies previously adopted this approach, focusing on more extended events like the IIHF World Championships [21] or FIFA World Cup [19].…”

“…After the events, the destinations faced decreased interest and demand for the proposed services, where the decline of 6 % was identified in the event stage [20]. Another aspect of the event's success and hosting destination is its allocation to shoulder periods on the market, which was proven by hosting the IIHF World Championship in Prague and Bratislava [21]. The authors identified a significant effect on the Bratislava hospitality market, where the performance of the hospitality industry was commonly low during the period when the championship was hosted.…”