Determination of the thermal hotel location: application of analytic hierarchy process

Abstract

Purpose – In recent years, as other sectors, there is an increasing trend of competition in thermal hotel sector. The aim of this study is to determine the importance of the factors on thermal hotel location via Analytic Hierarchy Process (AHP). The study is conducted in one of the most famous thermal cities, Afyonkarahisar-Turkey. Methodology – AHP is used to determine the best location among all alternative locations. Findings – According to the results of AHP, Environmental Factors are found to be the most important factor in determining the location of the thermal hotel. The other factors according to their importance are; Features of the Construction, Costs of Investment, Location of the Construction, Competitive Factors and Demographic Structures respectively. Within Environmental Factors, the sub-factor Closeness to Thermal Water was found to be the most important. Value/originality – Determination of the location of a new hotel is very important for thermal tourism investors and also it is one of the most difficult factors for them. While they determine the most suitable location, they have to think about different criteria and all other alternatives. Other factors like features of the construction, environmental factors, competitive factors and demographic structures are almost as important as the location of the hotel which also has some sub factors. This study focused on how to determine the best hotel location via AHP.