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The impact of the Web Summit on hotel performance, the case of Lisbon

Author

Listed:
  • Carla Bento

    (Polytechnic Institute of Leiria)

  • Paulo Almeida

    (Polytechnic Institute of Leiria)

  • José Luis Jiménez-Caballero

    (Universidad de Sevilla)

Abstract

This study aims to examine the impact of a mega business event—the Web Summit—on local hotels’ key performance indicators. The Web Summit is an annual technology event held in November. Lisbon has been the chosen city for the past 3 years, 2019 making it the fourth. To understand this, daily data collected from STR allowed for a comparative study between hotel performance before and after the Web Summit. We compare the 3 years prior to the event and the last 3 years of the event taking place in Lisbon. The sample size is 63 hospitality companies that range from Economy to Luxury Class and ADR, RevPAR, and Occupancy data. Results show that on the first dates of the event ADR and RevPAR increase up to 115% and occupancy 21% when compared to the previous year. However, on the third year of the event, 2018, these numbers do not see the same increase and remain somewhat similar to the previous year, 2017. This shows that there is major impact on hotel performance justifying the interest governments and other tourism agencies have in attracting these types of events, although after the first impact prices tend to stabilize. The focus on one event only and not compared to other events and other type of event. This study will help Revenue Managers and other decision makers examine the real impact on hotel revenue of such events. They will also be able to preview growth associated to the implementation and support of mega events. This study shows that there are clear benefits in holding big business events, but hoteliers should make better forecasts to yield better results specially when concerning revenues. The before and after daily analysis of key performance indicators is of great value to help hoteliers and practitioners about revenue management pricing strategies regarding this type of events and their long-term impact.

Suggested Citation

  • Carla Bento & Paulo Almeida & José Luis Jiménez-Caballero, 2022. "The impact of the Web Summit on hotel performance, the case of Lisbon," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(5), pages 564-577, October.
    • Handle: RePEc:pal:jorapm:v:21:y:2022:i:5:d:10.1057_s41272-021-00357-4
    DOI: 10.1057/s41272-021-00357-4
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    References listed on IDEAS

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