The strategic value of advertising expenditures in the tourism and hospitality industry

Qi, Rui; Cárdenas, David; Mou, Xichen; Hudson, Simon

doi:10.1177/1354816618786845

Cited by 7 publications

(8 citation statements)

References 55 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Previous studies related to the evaluation of the effectiveness of destination promotional campaigns (Park et al, 2013;Park and Nicolau, 2015;Pratt et al, 2010;Qi et al, 2018;Stienmetz et al, 2015) have been used to identify important aspects which can assist DMOs in improving their promotional efforts. This research focused on evaluating the effectiveness of tourist destination advertising using the DAR Model (Stienmetz et al, 2015).…”

Section: Discussionmentioning

confidence: 99%

“…Destination marketing has then changed from passive to active promotion with the diffusion of the Internet, from one-way to interactive marketing, and from collateral material to user generated content (Mistilis et al, 2014). With the significant influence of technology, social media and empowered consumers (Mendes-Filho et al, 2018), advertising managers should use digital marketing as an integral part of the tourism organization's decision-making framework (Qi et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Evaluating the effectiveness of tourist advertising to improve the competitiveness of destinations

2019

View full text Add to dashboard Cite

This study focuses on the evaluation of the tourist destination advertising effectiveness. The destination advertising response DAR model was used to analyze data on the effectiveness of destination promotional campaigns on visitor expenditure, in six trip facets: destination, accommodations, attractions, restaurants, events, and shopping. Independent sample t-tests were conducted to identify any differences in total destination spending among the groups of those visitors influenced for each trip facet. A multiple regression analysis was performed to discriminate the performance of the travel facets expenditures in the estimation of total expenditures. Significant results indicate that the “destination,” “accommodations,” and “restaurants” facets directly influence the total expenditures. Self-planners had the highest variance, explaining in total visitor expenditure compared to the regression analysis results of the other two groups (i.e. travel agencies and online travel agencies). The study also explores how destinations can improve their competitiveness on tourist advertising by using technologies.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Evaluating the effectiveness of tourist advertising to improve the competitiveness of destinations

2019

View full text Add to dashboard Cite

show abstract

“…The market value is determined by the combined earning power of both intangible and tangible assets. Advertising spending augments the market value of the firm (Qi et al , 2018). Sridhar et al (2014) confirm that advertising outlays enhance the market value for high technology manufacturing firms in the United States.…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of advertising spending on operating and market performance of banks: empirical evidence from Bangladesh

Molla

Rahaman

2021

AJAR

View full text Add to dashboard Cite

PurposeThe purpose of the paper is to empirically explore the economic effect of advertising spending on the performance of banks on a sample consisting of all banks listed on the Dhaka Stock Exchange over the period spanning from 2011 to 2019.Design/methodology/approachA dynamic panel data autoregressive approach of two-step system generalized method of moments (2-SGMM) estimation technique has been adopted in this study to analyze the contemporary and carryover effect of advertising on the financial performance of banks.FindingsThe findings indicate that advertising expenditure boosts banks' accounting returns but not their market value. Furthermore, advertising has a negative carryover effect on the financial performance of banks and is statistically significant for operating profit and return on equity. This finding demonstrates that the economic benefits of advertising expenditure lapse entirely within the current period and ought to be treated as an expense since it does not bring any future return for the banks in Bangladesh. In addition, this paper also offers no critical contrast between the impact of advertising spending on the performance of both conventional and Islamic banks operating in Bangladesh.Originality/valueTo the best of the authors' knowledge, no study so far has looked into the effect of advertising on the profitability and the market value of the banks operating in Bangladesh, and this is the first study that explores this relationship.

show abstract

“…Taking into account the 4000 million euros allocated to advertising by the Spanish market in 2015, the sector named “transport, travel, and tourism” obtains an advertising investment share of 4.6%, occupying the ninth position out of a total of 23 sectors. Likewise, 71% of the total advertising investment made by the “transport, travel, and tourism” sector corresponds to the category of “travel and tourism.” More specifically, the advertising investment made by hotels and hotel chains is just over 26 million euros in 2015, representing 14.1% of the total investment of the sector (transport, travel, and tourism) and 19.7% of the category “travel and tourism.” In fact, in the tourism sector, advertising investment promotes the creation of intangible assets in companies (Hsu and Jang, 2008), providing greater future economic benefits than other assets (Qi et al, 2018). In the hotel sector, advertising constitutes one of the most useful marketing tools to attract consumers (Hilmi and Ngo, 2011), having a decisive impact on the results of the hotel (O’Neill et al, 2008).…”

Section: Introductionmentioning

confidence: 99%

Brand strategy scope and advertising spending: The more the better?

Rubio

Calderón-Martínez

2019

Tourism Economics

View full text Add to dashboard Cite

Given the need to justify business management expenses, firms are very interested in measuring marketing performance. The objective of this article is to analyze mass media advertising investment from an efficient point of view in hotel chains. To accomplish the objective, this article applies a two-stage double bootstrap data envelopment analysis to the monetary resources allocated to the different advertising media by the main companies in the Spanish hotel sector. The authors further investigate the determinants of hotel advertising efficiency in terms of the number of brands in the hotel portfolio and the combination of advertising media used (i.e. Internet advertising). The results show a certain level of waste of advertising spending by hotel chains and that both brand portfolio scope and Internet advertising positively affect efficiency.

show abstract

The strategic value of advertising expenditures in the tourism and hospitality industry

Cited by 7 publications

References 55 publications

Evaluating the effectiveness of tourist advertising to improve the competitiveness of destinations

Evaluating the effectiveness of tourist advertising to improve the competitiveness of destinations

Effect of advertising spending on operating and market performance of banks: empirical evidence from Bangladesh

Brand strategy scope and advertising spending: The more the better?

Contact Info

Product

Resources

About