Exploring the Environmental Scanning of the Hotel Industry in China

This study explores the environmental scanning of the hotel industry in China by investigating the effect of external and internal factors on hotel performance. The respondents are hotel owners, managers, directors, and supervisors in various regions of China. Results show that industry force factors and hotel ownership influence hotel performance. Hotels with an advantage over their suppliers can generate superior financial and operational performances than hotels with less advantage over their suppliers. Existing hotels with a low threat of new entrants gain more benefit in terms of operational performance than those with a high threat of new entrants. The internal factor of hotel ownership influences operational performance. Joint-venture hotels deliver greater operational performance than state-owned and private-owned hotels. By contrast, substitutions, customers, competitors, and hotel size do not affect hotel performance. Hoteliers in China should acquire the advantages of massive suppliers, low threat of new entrants, and hotel ownership in achieving desirable performance.