Big Data Analytics and Firm Performance in the Hotel Sector

Abstract

Big data (BD) analytics play a key role in helping hotel firms gain competitive advantages and achieve superior performance. The purpose of this study was to determine which factors encourage the use of big data analytics (BDA) by hotel firms and the impact of BDA on hotel firms’ performance. Understanding the impacts of big data analytics in the hotel sector is important to help hotel managers use big data for creating business value by increasing hotel performance. A research model was developed and tested with data collected through a questionnaire sent to hotel managers in a European country and analysed with PLS. The results indicate that organisational readiness and competitive pressure encourage the use of BDA through the mediating role of top management support. The findings also indicate that the use of BDA can create business value by increasing the main dimensions of hotel performance: financial performance, customer retention rate, and hotel reputation.