Dual-branded hotels: Resource-based entry strategies in agglomerated markets

Simone Bianco, Manisha Singal, Florian J. Zach, Juan Luis Nicolau

Research output: Journal article publicationJournal articleAcademic researchpeer-review

2 Citations (Scopus)

Abstract

Despite the growing importance of dual-branded hotels, research on this trend is lacking. This study investigates the effect of resource-based entry strategies for dual-branded hotels vis-à-vis incumbent market competition on performance. Using a hierarchical linear model, we found that best performance is achieved by dual-branded hotels that pursue a diversification strategy by entering the market with one brand above and one brand below the mode class of the market. Dual-branded hotels can thus achieve competitive advantage by exploiting superior financial resources and tourism destinations are able to gain monetary advantage from resources employed by dual-branded hotels. This study extends current research on dual-branded hotels by investigating entry strategies and contributes to the resource-based view literature by investigating dual-brands’ resource exploitation and resource spillovers in agglomerated markets.

Original languageEnglish
Article number104663
JournalTourism Management
Volume95
Early online dateOct 2022
DOIs
Publication statusPublished - Apr 2023
Externally publishedYes

Keywords

  • Agglomeration
  • Competitive advantage
  • Dual brand hotels
  • Market entry
  • Random effect model
  • Resource-based view

ASJC Scopus subject areas

  • Development
  • Transportation
  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

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