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

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 en...

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Main Authors: Lijuan Su, Andrei Kirilenko, Svetlana Stepchenkova
Format: Article
Language:English
Published: MDPI AG 2024-02-01
Series:Tourism and Hospitality
Subjects:
Online Access:https://www.mdpi.com/2673-5768/5/1/11
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author Lijuan Su
Andrei Kirilenko
Svetlana Stepchenkova
author_facet Lijuan Su
Andrei Kirilenko
Svetlana Stepchenkova
author_sort Lijuan Su
collection DOAJ
description 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.
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spelling doaj.art-0abc4084f98a41da8d5d9a2f295f07a92024-03-27T14:06:05ZengMDPI AGTourism and Hospitality2673-57682024-02-015116016610.3390/tourhosp5010011Compete or Avoid? Assessing Brand Competition Strategies with Spatial Colocation AnalysisLijuan Su0Andrei Kirilenko1Svetlana Stepchenkova2School of Tourism Management, Sun Yat-sen University, Guangzhou 510275, ChinaDepartment of Tourism, Hospitality, and Event Management, University of Florida, Gainesville, FL 32611, USADepartment of Tourism, Hospitality, and Event Management, University of Florida, Gainesville, FL 32611, USASpatial 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.https://www.mdpi.com/2673-5768/5/1/11brand expansionbudget hotelscolocation analysisencroaching effectnegative externalitiesspatial network
spellingShingle Lijuan Su
Andrei Kirilenko
Svetlana Stepchenkova
Compete or Avoid? Assessing Brand Competition Strategies with Spatial Colocation Analysis
Tourism and Hospitality
brand expansion
budget hotels
colocation analysis
encroaching effect
negative externalities
spatial network
title Compete or Avoid? Assessing Brand Competition Strategies with Spatial Colocation Analysis
title_full Compete or Avoid? Assessing Brand Competition Strategies with Spatial Colocation Analysis
title_fullStr Compete or Avoid? Assessing Brand Competition Strategies with Spatial Colocation Analysis
title_full_unstemmed Compete or Avoid? Assessing Brand Competition Strategies with Spatial Colocation Analysis
title_short Compete or Avoid? Assessing Brand Competition Strategies with Spatial Colocation Analysis
title_sort compete or avoid assessing brand competition strategies with spatial colocation analysis
topic brand expansion
budget hotels
colocation analysis
encroaching effect
negative externalities
spatial network
url https://www.mdpi.com/2673-5768/5/1/11
work_keys_str_mv AT lijuansu competeoravoidassessingbrandcompetitionstrategieswithspatialcolocationanalysis
AT andreikirilenko competeoravoidassessingbrandcompetitionstrategieswithspatialcolocationanalysis
AT svetlanastepchenkova competeoravoidassessingbrandcompetitionstrategieswithspatialcolocationanalysis