Dynamics of agglomeration and competition in the hotel industry: a geographically weighted regression analysis based on an analytical hierarchy process and geographic information systems (GIS) data
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Illescas Manzano, María Dolores; Martínez Puertas, Sergio; Marín Carrillo, Gema María; Marín Carrillo, María BelénDate
2023-03-25Abstract
Research background: The effects of locating next to other establishments of equivalent activi-ty is a decision with serious and far-reaching implications, not only from the point of view of location decisions but also with regard to competitive strategy, pricing, or promotion deci-sions. The literature provides evidence of the negative effects of being proximate to competi-tors (erosion of market share), but there are also benefits associated with the increased attrac-tion of demand (attraction effect). This phenomenon is of particular interest in the case of hospitality, where hotel concentrations can be found around certain tourism resources, and is a crucial factor in hoteliers' decisions as they evaluate these contradictory effects. Purpose of the article: Drawing from the relevance that the confrontation between agglomera-tion and competition has in the hotel industry, our study aims to examine if this confrontation can be driven by geographical location...
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Economics