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Strategy and Performance in the Spanish Hotel Industry

This study uses the strategic group approach to analyze and explain why different strategies, implemented in the hotel industry, result in different performance levels. The population consists of three 5-star Spanish hotels. The authors identified five business strategies and four strategic groups in this industry. There are significant differences between the strategic groups in three out of five of the performance variables analyzed, and the different strategies affect each strategic group in a heterogeneous way. This study informs hotel managers about the competitive strategies and subsequent benefits developed within their industry. Finally, the article proposes effective business strategies hoteliers should follow to improve each performance variable, according to their strategic group.