How Can Small and Medium-sized Hotels Compete with International Hotel Chains? Egypt As a Case Study

Abstract

The majority of the accommodation properties in Egypt, nearly 54%, can be considered as small and medium-sized hotels (SMSHs). This study aimed to explore the position of SMSHs regarding competition with chain hotels, as well as to ascertain the practices that could potentially strengthen the competitive position of SMSHs. This study considers the perceptions of four major stakeholder groups (i.e., managers of SMSHs, tourism intermediaries, hotel guests, government officials) regarding the investigated issue. A qualitative approach was adopted in this study using in-depth semistructured interviews that were conducted with 42 participants. The results of the study revealed that SMSHs held a very weak competitive position against chain hotels. Such weak competitive position can be contributed to a number of operational shortcomings such as: limited services and facilities; low-quality services; and unqualified personnel. However, SMSHs had some operational advantages that could possibly be used for improving their competitiveness (e.g., low prices, friendly service style, and providing original accommodation experience). The results also concluded some suggested practices, for both SMSHs and other stakeholders, which could potentially enhance the competitiveness of SMSHs, such as: developing marketing activities and promoting SMSHs internationally, and establishing independent consortia for SMSHs. The study ended by providing a proposed model and a set of practical implications that would improve the competitive position of SMSHs in Egypt and enhance their performance.