The Influence of Occupancy Change on Hotel Market Equilibrium

Denton, Gregory A.; Sandstrom, Jennifer

doi:10.1177/1938965520953849

Cited by 5 publications

(4 citation statements)

References 21 publications

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“…Of particular interest to the hotel industry is assessing the impact of accommodation supply on key hotel performance indicators [51][52][53]. Supply and demand imbalances in hotel markets cause short-term growth or declines in rate and are inefficiently self-correcting over the long term [54]. Figure 4 presents the hotel occupancy rate by province; the province of Málaga provides the best average occupancy rate (78%) in the period examined, followed by Cádiz (77.9%), Huelva (75.1%), Almería (74.3%), Granada (56.1%), Seville (50.3%), Córdoba (45.6%), and Jaén (36.8%).…”

Section: Indicators Of Tourism Demand Empirical Evidence From Other S...mentioning

confidence: 99%

English, German, and French Tourists Are Key to the Success of Andalusian Destinations (Spain)

Florido-Benítez

2023

Sustainability

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Why was this research undertaken? Because in some tourist destinations the number of international tourists has a greater impact on the number of overnight stays at hotels compared to domestic tourism. The aim of this study was to analyse the main tourist market segments in destinations in Andalusia from 2004 to 2022, to demonstrate the relevance of, and dependency on, the tourism industry in this territory. The methodology used in this research collected secondary data from Spanish and Andalusian public organizations (IECA, INE, SAETA and AENA), and information related to this topic from researchers and organizations (primary data) to select specific indicators and to draw the appropriate conclusions. The findings of the current study reveal that English, German, French, Italian, Belgian, and American tourists are the main markets of the Andalusian provinces and their hotel establishments. In addition, these three segment markets depend on the air accessibility and connectivity provided by Andalusian airports. Moreover, it should be remembered that domestic tourism generates 35.1% of the overnight stays at Andalusian hotels. Domestic tourism helped the hoteliers of Andalusia to survive the pandemic crisis when inbound tourism dropped to zero. Andalusia constitutes an interesting case of study because it attracts a large amount of tourism demand. Although English, German, and French markets monopolize the number of overnight stays, DMOs need to attract tourists from other countries to diversify the tourism demand.

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Section: Indicators Of Tourism Demand Empirical Evidence From Other S...mentioning

confidence: 99%

English, German, and French Tourists Are Key to the Success of Andalusian Destinations (Spain)

Florido-Benítez

2023

Sustainability

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“…The data on occupancy rate of Andalusia hotels was collected from IECA organizations, which contains annual and monthly aggregate occupancy rates of hotel classes from 1 January to 31 December 2022. Of particular interest to the hotel industry is assessing the impact of accommodation supply on key hotel performance indicators [see 26,69,86,87,88,89,90]. Supply and demand imbalances in hotel markets cause short-term growth or declines in rate and are inefficiently self-correcting over the long term [90].…”

Section: Demand Indicatorsmentioning

confidence: 99%

“…Of particular interest to the hotel industry is assessing the impact of accommodation supply on key hotel performance indicators [see 26,69,86,87,88,89,90]. Supply and demand imbalances in hotel markets cause short-term growth or declines in rate and are inefficiently self-correcting over the long term [90]. The hotel occupancy rate is also one of the important considerations for us to measure the impact of tourism promotion at hotels.…”

Section: Demand Indicatorsmentioning

confidence: 99%

The Impact of Tourism Promotion at Andalusian Eight Provinces

Florido-Benítez¹

2023

Preprint

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The aim of this study is to analyse tourism promotion of eight provinces of Andalusia from 2010 to 2022, and to examine the ways that tourism promotion campaigns influence and stimulate the improving of tourism supply and demand at Andalusian provinces. The methodology used in this study collected data from Andalusian public organizations (secondary data), and information related to this topic from researchers and organizations (primary data) for the purpose of this research project. This research provides a new contribution to tourism industry and promotion strategies context. Findings of the current study prove that DMOs of Andalusian provinces increased the tourism promotion budgets and campaigns to revitalize the tourism demand and supply due to the pandemic crisis and Russia’s invasion of Ukraine. Indeed, results of this research suggest that Andalusia’s tourism promotion budgets and campaigns have helped to improve the number of passenger arrivals, number of tourists, hotel occupancy rate, overnight stays at hotels by international and Spanish, and total overnight stay indicators in the period analysed, especially in the years 2021 and 2022. The contribution of this study has a great relevance to tourist destinations, DMOs, hotels, airports, and stakeholders where application of tourism promotion budgets, joint promotion campaigns, and new tourism products and services should be implemented to improve the tourism supply and demand, guarantee the regional and local economy and well-being of population.

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“…One of the most difficult factors to take into account when projecting tourism demand/performance is the level of market disequilibrium, or the imbalance between demand and supply (Arenoe, van der Rest, and Kattuman 2015), each of which can generate short-term growth or declines in ADR, occupancy, and RevPAR in the hotel sector. In other words, tourism performance levels fluctuate daily based on variations in demand, supply, and their associated factors (Denton and Sandstrom 2020). Tourism performance is a function of demand and supply in the short-term visitor market.…”

Section: Literature Reviewmentioning

confidence: 99%

Pandemic Severity, Policy Stringency, and Tourism Performance: A Global Analysis

Yang

Mao

Wen

2021

Journal of Travel Research

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This paper investigates the impact of the COVID-19 pandemic and its associated policy effects on global tourism performance. Using daily data from 117 countries between January 23, 2020 and June 5, 2021, we applied a fixed-effects panel data model to investigate the impact and its moderators. Results show that COVID-19 cases had a significantly negative effect on tourism revenue and pricing. Specifically, a 10% increase in COVID-19 cases led to a 0.490%, 0.103%, and 0.388% decline in RevPAR, ADR, and occupancy change, respectively. Furthermore, degree of dependence on tourism, and economic support policies moderated this effect. Consequences related to revenue and demand were more remarkable for luxury tourism products than economic ones. Geographical and temporal heterogeneity were also noteworthy, and the impact of pandemic severity on revenue and demand was highly notable in certain periods, such as April and May 2020 and January to mid-March 2021. Lastly, implications are provided.

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The Influence of Occupancy Change on Hotel Market Equilibrium

Cited by 5 publications

References 21 publications

English, German, and French Tourists Are Key to the Success of Andalusian Destinations (Spain)

English, German, and French Tourists Are Key to the Success of Andalusian Destinations (Spain)

The Impact of Tourism Promotion at Andalusian Eight Provinces

Pandemic Severity, Policy Stringency, and Tourism Performance: A Global Analysis

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