Hotel Competitiveness Measurement Methods

Competitiveness is becoming a very common expression used in business administration. The definition and its application still raises some questions due to the complexity of its meaning. The role of the measurement of competitiveness and its effect on performance and profitability is increasing in the field of hospitality and tourism as well. The measurement of hotel competitiveness is a current issue in business life due to globalization, sharing economy and the change in the consumber habits. The steady increase in the number of accomodation possibilities create a need for competitive strategy among the hotels. Complex indicators and indices formed of special factors are available for estimating the level of competitiveness in the service sector but these methods still hold several untrapped areas. The aim of this research is to introduce the existing literature in connection with hotel competitiveness and with the application of the grey relational analysis evaluate the level competitiveness of five star hotels in Budapest (Corinthia Hotel Budapest, Four Seasons Hotel Budapest Gresham Palace, Intercontinental Hotel Budapest, Kempinski Hotel Corvinus Budapest and Marriott Hotel Budapest). Grey relational analyis is tested on the basis of the competitiveness pyramid and finally a methodology and further business implementation of the index is proposed.