Workforce and destination influence over hospitality industry performance

Abstract

Purpose As part of the recent global financial crisis, Europe has experienced a double crisis (financial crisis and Euro crisis) leading to a double dip recession, meaning that the effects of the crisis have been longer and more severe. Tourism, specifically the hospitality industry, is important for the economy of Southern European countries, where the crisis has been the worst. Spain especially depends on tourism as important source of GDP. Therefore, the purpose of this paper is to identify the contributing factors to better manage the crisis impacts and anticipate future impacts. Design/methodology/approach The authors examine the performance of a sample of 7,293 Spanish hospitality companies based on data from 2008 to 2011. With the aim of testing the hypotheses, a multivariate regression analysis was performed. Findings Results show the importance of a direct effect over both internal (workforce as well as hotel characteristics) and external factors (destination-related GDP spending) for growth, with varying influence across factors. Nevertheless, the most influenced are the moderated effects among the workforce and external variables. Research limitations/implications This study contributes to the literature by providing a firm-level analysis (rather than an industry-level analysis) and offers an almost complete picture of a specific geographical area. Future research should address the performance of other tourism industries in times of crisis, such as restaurants and travel agencies, and the relationships between performances in different tourism industries. Regarding the limitations of the paper, the main limitation is associated with the use of panel data from an official database. These include problems in the design, data collection and data management of panel surveys. Practical implications These findings help the hospitality industry to understand the relevant drivers and coping strategies associated with the hospitality industry during a financial crisis. Originality/value This study is focused on the firm-level analysis instead of an industry-level analysis and can thus give advice to the strategic behaviour of companies.