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Is more better? The relationship between meeting space capacity and hotel operating performance

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  • Madanoglu, Melih
  • Ozdemir, Ozgur

Abstract

This study examines the effect of meeting space capacity on hotel operating performance. We use Resource-Based View (RBV) of the firm as the theoretical foundation. We employ a national-level dataset with more than 20,000 hotels in the United States for the 2007–2012 period. We find that meeting space has a non-linear effect on hotel operating performance. That is, at low levels of meeting space, meeting space capacity is negatively related to hotel operating performance. At high levels of meeting space, meeting space capacity has a positive influence on operating performance. These findings provide insights for hotel owners, developers and practitioners in planning hotel meeting space capacity.

Suggested Citation

  • Madanoglu, Melih & Ozdemir, Ozgur, 2016. "Is more better? The relationship between meeting space capacity and hotel operating performance," Tourism Management, Elsevier, vol. 52(C), pages 74-81.
  • Handle: RePEc:eee:touman:v:52:y:2016:i:c:p:74-81
    DOI: 10.1016/j.tourman.2015.06.005
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    References listed on IDEAS

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    4. Rubin, Paul H, 1973. "The Expansion of Firms," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 936-949, July-Aug..
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    Cited by:

    1. Walheer, Barnabé & Zhang, Linjia, 2018. "Profit Luenberger and Malmquist-Luenberger indexes for multi-activity decision making units: the case of the star-rated hotel industry in China," RIEI Working Papers 2018-06, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    2. Wei Jiang & Liwen Wang & Kevin Zhou, 2022. "Green Practices and Customer Evaluations of the Service Experience: The Moderating Roles of External Environmental Factors and Firm Characteristics," Post-Print hal-04015637, HAL.
    3. Wei Jiang & Liwen Wang & Kevin Zheng Zhou, 2023. "Green Practices and Customer Evaluations of the Service Experience: The Moderating Roles of External Environmental Factors and Firm Characteristics," Journal of Business Ethics, Springer, vol. 183(1), pages 237-253, February.
    4. Donate, Mario J. & González-Mohíno, Miguel & Paolo Appio, Francesco & Bernhard, Fabian, 2022. "Dealing with knowledge hiding to improve innovation capabilities in the hotel industry: The unconventional role of knowledge-oriented leadership," Journal of Business Research, Elsevier, vol. 144(C), pages 572-586.

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