Entry mode choice in the internationalisation of the hotel industry: a holistic approach

Abstract

This paper empirically investigates the entry mode choice in the hotel industry. Based on more than 1200 entry decisions, which covers practically all operations carried out by the majority of Spanish hotel chains up to 2009, the study attempts to (a) identify the factors that influence the mode choice of incorporating each new hotel within the chain and (b) to reflect the specific nature of the hotel industry with regard to the results obtained from samples of other industries. The results suggest the importance of considering a holistic approach that facilitates the understanding of a complex phenomenon which is not always explained just by efficiency considerations. Additionally, the results show that some arguments used in manufacturing firms cannot be directly transferred to the hotel industry because unique characteristics of these special services condition the entry mode choice into international markets.

Keywords:

• hotel chains
• internationalisation
• entry modes
• services

Notes

In this work, we analyse partial acquisitions as joint ventures, given that control over the foreign operation is shared. This same argument has been used, among others, by Chang and Rosenzweig (2001). This research was supported by the Research Project SEJ 2006–13889 of the Spanish Minister of Science and Education.