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Agglomeration and Firm Performance pp 95–122Cite as

Where Should I Locate My Hotel? An In-Depth Analysis of the Cluster Effect on Hotel Performance

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Part of the book series: Advances in Spatial Science ((ADVSPATIAL))

Abstract

In this paper we analyse economic data over a period of 5 years from the Smith Travel Research (STR) database using an event study technique to compare economic performance among a total of 27,207 hotels, 4339 of them located in US touristic clusters. The aim of the research is to determine if the cluster effect is affecting the economic performance of hotels. Hotels are segmented and compared to similar groups in terms of revenue, scale, location, and affiliation, and then each of the hotels within a touristic cluster is compared to a similar group of outside-cluster hotels. Though the mean values for economic performance are higher than those properties located in clusters, specific analysis suggests that the cluster effect is not affecting all the hotels in the same way and that property level influences the economic performance of hotels within a touristic cluster.

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Notes

  1. 1.

    In this work, we consider it to be equivalent to dynamic concentration, synergic concentration, and cluster.

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Acknowledgement

The authors would like to thank the Center for Hospitality Research at Cornell University that hosted A. Peiró and M. Segarra as visiting scholars and Donald Schnedeker from the Nestle library at the School of Hotel Administration at Cornell University.

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Authors and Affiliations

  1. Management Department, Universitat Politècnica de València, Valencia, Spain

    Angel Peiró-Signes & Marival Segarra-Oña

  2. Cornell University, Ithaca, NY, USA

    Rohit Verma

  3. Social Sciences Department, Universitat Politècnica de València, Campus de Gandia, Valencia, Spain

    Luis Miret-Pastor

Authors
  1. Angel Peiró-Signes
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  2. Marival Segarra-Oña
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  4. Luis Miret-Pastor
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Corresponding author

Correspondence to Angel Peiró-Signes .

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Editors and Affiliations

  1. Dipto. Scienze Economiche, Marco Fanno, Università di Padova, Padova, Italy

    Fiorenza Belussi

  2. ESIC Business and Marketing School, Madrid, Spain

    Jose-Luis Hervas-Oliver

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Peiró-Signes, A., Segarra-Oña, M., Verma, R., Miret-Pastor, L. (2018). Where Should I Locate My Hotel? An In-Depth Analysis of the Cluster Effect on Hotel Performance. In: Belussi, F., Hervas-Oliver, JL. (eds) Agglomeration and Firm Performance. Advances in Spatial Science. Springer, Cham. https://doi.org/10.1007/978-3-319-90575-4_7

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