Abstract
We investigate the impact of advertising on hotel management companies’ (HMC) operational efficiencies on a sample of 90 international HMCs over the period 2010–2019. We employ time-dependent conditional frontier estimators to investigate the effect on HMCs’ technological change and technological catch-up levels. Our findings support the existence of a non-monotonic convex relationship between HMCs’ advertising expenses and their operational performance. Lastly, we also utilize the double bootstrap approach in a truncated regression setting to validate the overall effect of advertising expenses on HMCs’ operational performance levels. The findings suggest that advertising expenses decrease operational inefficiencies.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
