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Expansion of a hotel chain and environmental quality

Author

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  • Aleix Calveras

    (Universitat de les Illes Balears)

Abstract

In this paper we analyze in which way the expansion strategy of a hotel chain is influenced by the environmental quality of both the domestic and the foreign region. We show that the environment (which is a public good, and determines the competitive advantage of hotels in a region) plays a double role in shaping the strategy of the chain. Thus, a chain will expand internationally when the combined environmental potential of the two regions is large enough. Or, alternatively, for a home region with a medium-low environmental potential, the chain will expand internationally when the foreign region has a high enough potential in environmental quality.

Suggested Citation

  • Aleix Calveras, 2007. "Expansion of a hotel chain and environmental quality," Investigaciones Economicas, Fundación SEPI, vol. 31(2), pages 263-295, May.
  • Handle: RePEc:iec:inveco:v:31:y:2007:i:2:p:263-295
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    Cited by:

    1. Hong, Tao & Ma, Tao & Huan, Tzung-Cheng (T.C.), 2015. "Network behavior as driving forces for tourism flows," Journal of Business Research, Elsevier, vol. 68(1), pages 146-156.
    2. Blanco, Ester & Lozano, Javier & Rey-Maquieira, Javier, 2009. "A dynamic approach to voluntary environmental contributions in tourism," Ecological Economics, Elsevier, vol. 69(1), pages 104-114, November.

    More about this item

    Keywords

    Multinational firms; environment; tourism industry.;

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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