Hotel innovation and performance in times of crisis

Abstract

Purpose – This paper aims to analyze the influence of innovation-based orientation on hotel performance, how the management’s perception of market turbulence moderates this relationship and the effect of an atmosphere of crisis. Design/methodology/approach – The research carried out used an on-line survey among four-star hotel managers in 52 Spanish cities. Findings – The results obtained indicate that the tendency of a hotel to innovate does not contribute directly and positively on short-term performance. However, it does confirm its importance when improving hotel performance in the medium- and long-term. This work discusses how the perception of technological turbulence influences the willingness to innovate, together with the effect that an economic-crisis-related-pessimistic management view has on marketing performance and long-term results. Originality/value – Reliable and valid scales, applicable to the hotel sector and useful both for researchers and managers, are provided to measure the tendency to innovate, perceived technological turbulence and company performance. Knowledge regarding innovation is expanded, including a critical factor to increase business profits and competitiveness in uncertain environments. The model proposed is tested in a sector where there is little empirical evidence about the effect of innovation on performance.