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Compete or Avoid? Assessing Brand Competition Strategies with Spatial Colocation Analysis

Author

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  • Lijuan Su

    (School of Tourism Management, Sun Yat-sen University, Guangzhou 510275, China)

  • Andrei Kirilenko

    (Department of Tourism, Hospitality, and Event Management, University of Florida, Gainesville, FL 32611, USA)

  • Svetlana Stepchenkova

    (Department of Tourism, Hospitality, and Event Management, University of Florida, Gainesville, FL 32611, USA)

Abstract

Spatial competition considerations are important in hotel location selection. This study proposes and demonstrates a method of colocation network analysis to quantify the potential encroaching effect of spatial inter- and intra-competition between units of business brands that seek expansion. The environmental context of the study is a network of the top five budget hotel brands in the Beijing hotel market. The results reveal that brands implement different strategies in their hotel placement, which are subject to different levels of the encroaching effect. However, the method is applicable in a variety of hospitality settings, specifically in those that involve the development strategies of chain brands. The simulation capability of the method can assist hospitality brands in assessing the outcomes of a proposed development and, thus, aid hoteliers in the spatial allocation of new units with the least adverse effects on their existing business networks.

Suggested Citation

  • Lijuan Su & Andrei Kirilenko & Svetlana Stepchenkova, 2024. "Compete or Avoid? Assessing Brand Competition Strategies with Spatial Colocation Analysis," Tourism and Hospitality, MDPI, vol. 5(1), pages 1-7, February.
    • Handle: RePEc:gam:jtourh:v:5:y:2024:i:1:p:11-166:d:1346088
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    References listed on IDEAS

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    1. Abdullah Dasci & Gilbert Laporte, 2005. "A Continuous Model for Multistore Competitive Location," Operations Research, INFORMS, vol. 53(2), pages 263-280, April.
    2. Brian T. McCann & Timothy B. Folta, 2009. "Demand‐ and Supply‐Side Agglomerations: Distinguishing between Fundamentally Different Manifestations of Geographic Concentration," Journal of Management Studies, Wiley Blackwell, vol. 46(3), pages 362-392, May.
    3. Arturs Kalnins, 2004. "An Empirical Analysis of Territorial Encroachment Within Franchised and Company-Owned Branded Chains," Marketing Science, INFORMS, vol. 23(4), pages 476-489, September.
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