How hotels compete on the basis of competitive priorities and their relationship with infrastructural and structural decisions

Abstract

This paper aims to investigate how hotels compete on the basis of competitive priorities. First, the study analyzes the relationship between competitive priorities and structural and infrastructural decisions. Second, it develops a taxonomy of hotels based on their emphasis on several competitive priorities. Finally, after identifying the groups of hotels according to their competitive priorities, their differences are analyzed regarding the importance and emphasis that they endow to operations decisions. Sixty-five hotels are surveyed, and valid instruments are designed to measure competitive priorities and operations decisions. The results show a positive relationship between competitive priorities, and each structural and infrastructural decision analyzed. Findings indicate that the three groups of hotels emphasize different sets of competitive priorities: cost and flexibility, “Do all” hotels, and quality and service. Finally, the results show significant differences among the groups of hotels in their emphasis on infrastructural and structural decisions. The consequences of competing in each of the categories of hotels are considered in the paper.