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Competitor‐focused accounting applied to a hotel context

Sharlene Anderson (Bond University, Robina, Australia)
Chris Guilding (Service Industry Research Centre, Department of Tourism, Leisure, Hotel and Sport Management, Griffith University, Gold Coast, Australia)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Article publication date: 1 April 2006

4409

Abstract

Purpose

To explore the nature and potential of competitor‐focused accounting practice (CFA) in a large hotel.

Design/methodology/approach

Unstructured tape‐recorded interviews ranging from one to one‐and‐a‐half hours' duration were conducted with 21 senior managers representing finance, marketing, hotel operations, casino, and human resource management in a large hotel.

Findings

Levels of CFA formalised application appear limited, especially when compared with a widely held managerial perception that significant benefits could derive from applying CFA. The CFA practices noted were conducted in an unstructured and ad hoc manner. The main generic use of CFA is in connection with sensitising staff with respect to competitors’ strengths and also strategy development. The hotel shared occupancy level information with competing hotels.

Research limitations/implications

The study suffers from all the limitations generally associated with a single company qualitative field study. These limitations include the degree of subjectivity that is invoked when researchers interpret qualitative field study data.

Practical implications

The paper clarifies the notion of “CFA” and provides an outline of CFA management issues arising in the context of a hotel. An outline is provided of those parts of a hotel operation that are most likely to be more active in CFA, together with empirically informed suggestions with respect to CFA uses in a hotel.

Originality/value

The paper is highly original. Despite the generally accepted importance of strategy development being informed by appropriately conducted competitor analysis, there has been a paucity of research concerned with competitor analysis in the hotel industry.

Keywords

Citation

Anderson, S. and Guilding, C. (2006), "Competitor‐focused accounting applied to a hotel context", International Journal of Contemporary Hospitality Management, Vol. 18 No. 3, pp. 206-218. https://doi.org/10.1108/09596110610658616

Publisher

:

Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited

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