Hotel Category Research Articles

Performance Comparison of Random Forest (RF) and Classification and Regression Trees (CART) for Hotel Star Rating Prediction

Purpose: This study proposes to evaluate the effectiveness of Random Forest (RF) compared to Classification and Regression Trees (CART) in prediction of hotel star ratings. The objective is to identify the algorithm that provides the most reliable and accurate classification outcomes based on diverse hotel attributes in accordance with the standard categorization of star hotel categories. This is necessary due to the important role of accurate star ratings in guiding consumer choices and enhancing competitive positioning in the hospitality industry. Method: This study conducted a comprehensive dataset about Hotel in Banyumas Regency, including location, facilities, the size of rooms, type of rooms, price of rooms, and customer reviews, subjected to training through both RF and CART algorithms. Both algorithms are evaluated using accuracy, precision, recall, and F1 score. Additionally, both algorithms due to in the same preprocessing while performing hyperparameter tuning improve the efficacy of each model. Result: The results showed that RF achieved the best overall accuracy and robustness than CART across all tests conducted. Furthermore, RF also outperformed CART in classification effectiveness among classes, including enhanced precision and recall scores across multiple stars rating categories, signifying increased generalization and consistency in classification tasks. RF classifier consistently surpassed the CART classifier in terms of both accuracy and F1-score throughout all random states and test sizes, with a highest score of 0.9932 at a random state of 100 and a test size of 0.4. The most reliable results were obtained using RF with 42 random states and a test size of 0.2, resulting in an accuracy of 0.9909, precision of 1.0, recall of 1.0, and F1 score of 1.0. Simultaneously, CART shows values of 0.9818, 1.0, 1.0, and 1.0, respectively, while maintaining the same variation. This consistent performance, regardless of fluctuations, illustrates the robustness and suitability of RF for classification tasks compared to CART. Novelty: This study offered new insights about the implementation of machine learning about hotel star rating predictions using RF and CART algorithms. Also, the novelty of the collected hotel dataset used in this study. A detailed comparative analysis was also provided, contributing to the existing literature by showing the effectiveness of RF over CART for this specific application. Future studies could explore the integration of additional machine learning methods to further enhance prediction accuracy and operational efficiency in the hospitality industry.

Evaluating the Impact of Hotel Classification on Pool Water Consumption: A Case Study from Costa Brava (Spain)

Swimming pools are key assets in the hotel industry. With climate change and water stress, more sustainable pools are needed in tourist areas. The study examines the relationship between hotel categories and the consumption of water in swimming pools in a Mediterranean coastal region facing water scarcity. The study focuses on the Costa Brava, with a focus on Lloret de Mar, a popular tourist destination. The research employs a combination of data analysis and the utilisation of evaporation models in order to estimate the consumption of water by swimming pools. The findings indicate that hotels in the higher categories, particularly those with three or four stars, contribute a notable proportion of the total water consumption due to their larger pool sizes and higher guest numbers. The study underscores the necessity for the implementation of sustainable water management strategies, particularly in the context of climate change. It recommends the utilisation of pool water-saving technologies as potential solutions. Furthermore, the paper highlights the broader environmental impact of tourism infrastructure on water resources and suggests policy measures to mitigate these effects. The research aligns with global sustainability goals such as the European Green Deal and the 2030 Agenda.

Unravelling tourism destination's competitiveness using big data analytics: a comparative analysis

PurposeThe competitiveness of destinations is crucial for tourism. In this context, the study aims to uncover customer satisfaction, experiences, feelings, and thoughts by conducting a comparative analysis of social media comments from various competitive tourism destinations.Design/methodology/approachBig data research was conducted to answer the research questions. The data was collected on a social media platform focusing on three destinations in the Mediterranean region. Three methods were employed to analyse the data: sentiment analysis, topic modelling, and named-entity recognition.FindingsThis study addressed traveller satisfaction levels. It identified the topics concerning each destination, examined the emotions expressed by travellers about these topics, explored the potential impact on future behaviour, and investigated the features of the destinations and satisfaction levels about these features. It also identified the prominent food and beverage names in destinations and explored tourists’ preferences regarding these foods and beverages.Research limitations/implicationsThe limitations of this study relate to the sample. The data used in this study was solely obtained from a single social media platform and focused on English-only comments. Further research that includes different social media platforms for hotel categories and considers reviews in local languages could capture a broader range of customer opinions and experiences.Practical implicationsPolicymakers can gain insight into a destination’s position in the competitive landscape. This study has numerous implications for policymakers in the relevant destinations and managers in the design and implementation of services.Social implicationsThe findings of this study can have broader societal implications if considered and implemented by decision-makers and tourism businesses in the context of competitiveness.Originality/valueThe study’s originality lies in integrating multiple disciplines and comparing tourism destinations using big data. This study improves the understanding of competitiveness in three specific Mediterranean destinations. Previous research has focused on different contexts in these Mediterranean destinations. Therefore, the study fills this gap by focusing simultaneously on all three destinations in the context of competitiveness.

A revenue management approach for tourism logistics optimization

AbstractTourism is a very complex industry and represents one of the most profitable activity in the world. A tourist product requires the execution of several multifaceted activities. Indeed, transportation, accommodation, entertainment, food, and beverages represent only some of the products/services required by a tourist. It is evident that a single enterprise cannot provide all the components of a tourist product, but several interrelated actors should collaborate. This leads to a very complex supply tourist chain that needs to be optimized. The relevant theories and methods of logistics can be used to efficiently manage all the flows that are generated in a tourist chain. The definition of appropriate policies, at the different nodes of the chain, can improve the performance of all the actors involved in tourism logistics. In this paper, we concentrate our attention on tour operators that are relevant in the touristic logistic chain since they are involved in several activities. We introduce different revenue management policies to support tour operators in the decision of accepting the most profitable tourist requests. A request consists of flights and hotel booking, characterized by a starting time of the trip and the length of stay at the destination. We allow for various combinations of flight legs and multiple categories of hotels to accommodate a variety of customer preferences and needs. A computational study is carried out by considering different scenarios, and the performance of the considered revenue management policies is analyzed in detail.

Metaphorical effects of advertising in different types of hotels: evidence from eye-tracking

PurposeThis study aims to explore the attraction, influence and persuasive effect of advertising (with or without metaphor) across different types of hotels (luxury vs. budget hotels).Design/methodology/approachTwo independent variables – namely, the hotel category (luxury versus budget) and the use of rhetorical figures (text with metaphors versus text without metaphors) – serve as the basis for the investigation. The research design is a 2 × 2 within-subjects construct based on eye-tracking methodology complemented by questionnaire-based data collection. Participants were engaged with hotel advertisements under four specific conditions, each reflecting a distinct combination of the two independent variables.FindingsThe findings reveal the augmented attention-grabbing prowess of advertisements that use metaphors compared to those that do not. Furthermore, the study findings reveal that the hotel category significantly influences the efficacy of advertising; advertisements promoting luxury hotels were found to stimulate superior impression recall, garner higher customer affinity and prompt a more potent intention to patronize the hotel. Finally, the study shows that neither congruent nor incongruent pairings of visual (budget or luxury hotel) and verbal elements (with or without metaphor) yield additional advertising benefits.Practical implicationsThis research addresses the limited empirical guidance available for hotel operators at various levels regarding the design of advertisements incorporating rhetorical devices. It highlights the potential benefits of using figurative rhetoric, especially metaphors, in advertising for both budget and luxury hotels. The study reveals a notable correlation between hotel category, particularly luxury offerings, and customer attention, retention, preference and intention to visit. Furthermore, it encourages hotel operators, regardless of their hotel’s ranking, to incorporate metaphorical language into their advertising designs, underscoring the need for strategic integration in overall advertisement planning.Originality/valueUsing high-resolution online eye-tracking technology, this study innovatively examines the influence of hotel category and rhetorical devices on the effectiveness and attention-grabbing potential of advertisements. Through this approach, the study seeks to offer valuable managerial and advertising insights for those involved in hotel marketing.

Work-Life Balance and Job Satisfaction for Hotel Employees in Delhi NCR, India

This research delves into the impact of work-life balance practices on the job satisfaction of kitchen professionals working in five-star category hotels situated in Delhi NCR, India. Employing a quantitative approach, data is gathered through surveys involving 300 respondents. Descriptive statistics, correlation analysis, and multiple regressions are harnessed to explore the intricate relationships between work-life balance, job satisfaction, and the overall well-being of employees. The findings underscore the pivotal role of work-life balance in elevating job satisfaction within the dynamic kitchen department of the hotel industry. Furthermore, the study offers practical recommendations for hotel kitchen management to effectively implement work-life balance initiatives

La reciente diversificación de los flujos turísticos internacionales hacia España

Rationale International tourism in Spain was highly buoyant in 2023, with record levels of tourist arrivals, hotel overnight stays and average spending per tourist. This article describes the recent characteristics of these tourist flows and the factors that could help explain them. Takeaways •The increase in international tourist arrivals in 2023 and early 2024 relative to the 2016-2019 period was more marked during the autumn and winter months than during the summer months. •In 2023 foreigner hotel overnight stays increased more sharply, compared with the pre-pandemic period, in the northern regions of Spain than in the islands and the south of mainland Spain. •Foreign tourist source countries also appear to have diversified in 2023, with a notable increase in the number of tourists from the Americas and a slight decrease in the number of tourists from countries such as Germany and the United Kingdom. •In 2023 as a whole international tourists appear to have chosen higher category hotels to a greater extent, thus boosting average spending per tourist.

Employability skills as perceived by hotel employees: An overview

Background: The hotel industry is labor-intensive. Both technical and behavioral aspects of quality are considered to ensure service quality and customer satisfaction among the internal and external customers as a whole, creating a competitive advantage. Significance: Recruiting and selecting the right people is paramount to the success of the hospitality industry in the sense that the best delivery will be enhanced if proper procedures are used and the right people are selected who can handle their tasks to the best satisfaction of the customer. Method: The goal of the research was to explore the recruiting and selection practices/methods used in the hotel industry, as well as their employability. The study aims to explore the differences in the mix of recruitment and selection methods implemented in 4- and 5-star and different category hotels. As an enterprise, HRD comprises change, learning, and performance. Results: Based on the findings, it is imperative to invest in human resources as a capital asset to boost staff entities in terms of knowledge and capabilities, thereby contributing to better service quality and enhanced customer satisfaction. This would help fulfil the organizations’ objectives. Conclusion: The study concludes that the selected candidates are being analyzed properly and effectively. It is very important to note that the results of this study cannot be generalized as it deals with a restricted clientele, and this could only add on variables and instances to form a common standpoint for the other hotel managers.

ПРАВОВЕ РЕГУЛЮВАННЯ ТУРИСТИЧНОЇ ДІЯЛЬНОСТІ В УМОВАХ ЦИФРОВІЗАЦІЇ УКРАЇНИ

The legal principles of the implementation of tourist activities in Ukraine are revealed; normative legal acts regarding the legal regulation of tourist activities in the conditions of digitalization of Ukraine were analyzed; the main normative acts regulating the activities of business entities in digital format are highlighted. The legal scope of procedures for state registration of business entities in electronic form and their electronic identification is considered. The issue of regulatory regulation of the processes of digital interaction of representatives of the tourism business with public authorities in terms of obtaining administrative services is analyzed. One of the directions of digitization is characterized – the creation of a platform of registers, the basic registers and others are disclosed. In accordance with the legislation of Ukraine, the following are included in the list of data sets subject to publication: License Register of Tour Operators, Register of Certificates Establishing Hotel Categories, Unified Tourist Register (EUTR). The Procedure for conducting the ETR was analyzed, the normative definition of the register was disclosed, the categories of users of this state electronic information system were listed, where the object is information about subjects of tourist activity and objects of tourist infrastructure. Legislation on information protection and its processing and regulations regulating information interaction in the digital format of the ETR with public electronic registers and other state electronic information resources are highlighted. In Ukraine, there are legal acts for the development of tourism activities in the conditions of the formation of the digital economy. The strengthening of the digital infrastructure of the domestic industry of tourism will be the implementation of the ETR in 2025. However, the specifics of the digitalization of tourism activities should be reflected in industry regulations, including law of Ukraine «About tourism». In addition, the presence of a significant number of regulations on the regulation of digital relations requires the unification of regulations into a single document on digitalization issues – the Digital Code, which will regulate socio-economic relations in the digital economy.

Employee’s personal characteristics and their perception on employee engagement: A study on hotel employees

Employee engagement is the concept by which an employee’s intellectual and his emotional attachment to work and organization is measured. Employees of the hotels are to be engaged to reduce employee turnover, enhance customer satisfaction and improved business performance that influences the sustainability of the organization in an aggressively competitive market. Data for the research has been collected from a four and five star category hotels at Kolkata which is analyzed for the role of employee’s personal characteristics, on the employee’s perception on engagement. The finding suggest that employee’s level of educational qualification and there gender have great role in their level of organizational engagement. Suggestions has been provided to improve the employee engagement in the study organizations.

EXPLORING THE RELATIONSHIP BETWEEN PSYCHOLOGICAL CONTRACT BREACH AND EMPLOYEE VOICE IN THE HOTEL INDUSTRY: AN EMPIRICAL STUDY

This study aims to investigate the role of psychological contract breach as a predictor of employee voice behavior. For this study, data was collected from employees working in A category hotels in Srinagar, Kashmir, India. The findings offer empirical evidence supporting the hypothesis that psychological contract breach (PCB) has a negative relationship with employee voice (EV). The finding is consistent with social exchange theory, suggesting that employees reactions are influenced by the treatment they receive from their organizations. The study contributes to the current body of literature on psychological contract breach and its impact on discretionary work behaviors. KEYWORDS: Psychological contract breach, Employee voice, Hotel industry, Structural equation Modelling

Designing innovation in urban hotels through guest experience data on interior design

PurposeThis paper aims to identify potential avenues for innovation in urban hotel management by analyzing self-reported data from visitors regarding their experience with interior design.Design/methodology/approachA qualitative exploratory computer-assisted content analysis was conducted to identify the impact of interior design on the guest experience. Leximancer 4.0 software analyzed 2,562 reviews from urban hotels collected through a reservation website.FindingsThe findings reveal that data reported by guests on interior design play a crucial role in shaping guest experiences, both positively and negatively. The esthetic appeal of interior design is shown to impact resting and comfort, affecting overall performance significantly. The study also highlights how different star categories of hotels and variations in visitors' purposes for their stay lead to distinct guest experiences and different opportunities to innovate.Research limitations/implicationsThe study’s results provide evidence for researchers and practitioners of the potential of the guest-reported interior design experience as a valuable source for fostering innovation. In addition, in the hotel industry, innovation may eventually be attained through interior design renovation.Practical implicationsSelf-reported data from guests on interior design is an effective tool for innovation. Making interior design a priority throughout the establishment and ongoing management of a hotel is crucial. By integrating interior design, not only can potential negative experiences be avoided, but greater guest satisfaction can also be achieved during their stay, promoting memorable experiences that align with the hotel category and customer expectations.Social implicationsThis research emphasizes the importance of interior design as a catalyst for innovation and improved social experiences in the hospitality industry. Innovation in interior design can improve hotel performance in several dimensions, including attracting more visitors to the hotel and the area, increasing tourism revenue for local businesses and contributing to the broader societal goal of reducing environmental impact and promoting sustainability.Originality/valueThis article adopts a guest-centered methodology to provide valuable insights for hotel managers to leverage interior design as a tool for innovation in the hospitality industry after showing that interior design enhances guests' experiences, comfort and hotel differentiation.

The Effect of Personal Characteristics on attitudes towards CSR: A Hotel Industry Perspective

Corporate Social Responsibility (CSR) has become an integral element of the tourism and hospitality industry. Personal characteristics/qualities are vital for becoming an effective manager, these characteristics play a pivotal role in a service industry like hospitality as they help in standardization to achieve the organisational goals. These characteristics can alter the outlook of managers with respect to the CSR activities of the organization. Therefore, the present study analyses such personal characteristics (like age, gender, education and work experience) of managers from a range of star category hotels to understand their attitude towards CSR. Descriptive analysis along with ANOVA was used for a sample of 417 managers from 7 states in India. A scale having 6 variables was used to determine the perception of these managers. The result showed that there is a significant difference for the variables gender, education and work experience. There are multifold suggestions provided based on the results which are targeted towards different stakeholders (like Academicians, Government Ministries, etc.)

Using focus groups and consumer perceptions to generate important features of hotel shampoos and lotions

AbstractHotel toiletries are standard complementary items found in hotel bathrooms. These commodities are important to consumers, yet minimum research has been conducted on consumers' perception of these hotel toiletries, nor the variables that can influence their preferences. Four focus group sessions were conducted with frequent hotel guests. These groups were separated based on the type of hotel toiletry (shampoo or lotion) and the category of hotel the consumers most regularly visited (i.e., luxury or economy). By the end of all four sessions, a list of 34 attributes for hotel shampoos and 29 attributes for hotel lotions was generated. Perceived differences were discovered such as economy guests testing the products before use, while luxury hotel guests had a “trust” factor in which testing was unnecessary. Additionally, relaxing “spa” like scents for shampoos and thick textures for lotions were important features. Follow‐up research has been published to validate the information quantitatively.Practical ApplicationsArticles publicly accessible on hotel toiletries are narrow. The investigation provides the groundwork for additional research to be conducted on the hotel toiletry category. The research resulted in various attributes to describe hotel shampoos and lotions, and how economy and luxury hotel guests use hotel toiletries. From the study, hotel owners and managers can explore the various opinions and perceptions of luxury and economy hotel guests regarding hotel shampoos and lotions.

Facilities management and clients satisfaction nexus in hotels in secondary cities in Ghana: A study of selected hotels in Wa

PurposeThis study aims to assess how the provision of facilities management (FM) services influences customer satisfaction in hotels in secondary cities. This study focussed on customer satisfaction in relation to specific FM services such as cleaning, maintenance, security, internet/information technology and air conditioner servicing.Design/methodology/approachThe study used a case study design. Simple random and purposive sampling methods were used to select the hotels and the respondents. The study used a survey based on the SERVQUAL model to collect data from 136 respondents. Six hotel managers were also interviewed.FindingsThere were disparities in customer satisfaction across the various hotel categories based on the assessment indicators used. Thus, customer satisfaction with FM services was not influenced by hotel ratings. On the calibre of staff handling FM activities, none of the hotels had a professional facilities manager. The hotel managers were in charge of FM activities, which affected the provision of FM services. Generally, customers in all the selected hotels were not satisfied with the quality of FM services. Specifically, the overall mean gap score was very low (−3.20), which meant that customers’ expectations far exceeded their perceptions, hence, their dissatisfaction. Tangible(s) of services were customers’ least appreciated (−1.04) dimension. This meant that hotels did not pay much attention to the physical (place) aspect of their FM activities. This should engage the attention of hospitality industry regulators and policymakers, given the current global health crisis caused by Covid-19 and its variance.Originality/valueThe study demonstrates customer satisfaction with FM services in hotels in secondary cities. Practically, hotels can become very competitive if they consider the findings of the study to provide effective customer-oriented FM services.

POTENTIALS OF DEVELOPING ARTIFICIAL INTELLIGENCE TECHNOLOGY IN THE SRI LANKAN HOTEL INDUSTRY WITH SPECIAL REFERENCE TO COLOMBO DISTRICT

The intense competition and unpredictable challenges in hotel operations in Sri Lanka have led to the need to adopt new technologies to provide better services to guests and maximise efficiency and effectiveness. Therefore, the main objectives of this study were to examine various Artificial Intelligence tools used in hotels in Sri Lanka, explore managers' perceptions of Artificial Intelligence, and identify barriers to the implementation of Artificial Intelligence in hotels in Sri Lanka. Using a purposive sampling, 15 managers of star category hotels in the Colombo district were selected and interviewed using a structured interview method to explore the objectives. The findings derived from the thematic analysis showed that hotels in Sri Lanka have limited knowledge of AI applications and that the respondents' perception of AI technology is still at an early stage where they doubt and question its effectiveness compared to human resource services. The study found that the use of AI technology has significant potential, especially in new and emerging hotels, as these new hotels tend to engage with tech-savvy guests compared to existing hotels in Sri Lanka. Moreover, technological advancements in artificial intelligence will undoubtedly lead to an unimaginable hotel experience that will increase guest satisfaction in Sri Lanka's hotel industry.

Explaining tourist revisit intention using natural language processing and classification techniques

Revisit intention is a key indicator of business performance, studied in many fields including hospitality. This work employs big data analytics to investigate revisit intention patterns from tourists’ electronic word of mouth (eWOM) using text classification, negation detection, and topic modelling. The method is applied on publicly available hotel reviews that are labelled automatically based on consumers’ intention to revisit a hotel or not. Topics discussed in revisit-annotated reviews are automatically extracted and used as features during the training of two Extreme Gradient Boosting models (XGBoost), one for each of two hotel categories (2/3 and 4/5 stars). The emerging patterns from the trained XGBoost models are identified using an explainable machine learning technique, namely SHAP (SHapley Additive exPlanations). Results show how topics discussed by tourists in reviews relate with revisit/non revisit intention. The proposed method can help hoteliers make more informed decisions on how to improve their services and thus increase customer revisit occurrences.

Hotel Post Covid-19: How Preparedness Affects Guest Satisfaction In A Mid-Scales Hotel

Post-pandemic health strategies will be critical to hotel success. Guests' expectations regarding sanitation, cleanliness, safety, and health continue to rise. As a mitigation plan, hotel preparedness is essential to ensure guest satisfaction. Still, few studies examine the relationship between preparedness and guest satisfaction during the COVID-19 pandemic. This study aims to determine the effect of preparedness on guest satisfaction and assess the preparedness’s importance and performance on guest satisfaction in Bandung. The mid-scale hotel category was chosen as the unit of study since it contains the majority of hotels in Bandung. This quantitative cross-sectional study was undertaken. The data was gathered using a questionnaire survey of respondents who had stayed in the mid-scale hotel in Bandung during the pandemic. The data was analyzed using Structural Equation Modeling (SEM) PLS and Importance-Performance Map Analysis (IPMA). According to the research findings, hotel preparedness has a synergic effect on guest satisfaction. Preparedness is a process, not a product, and each practice cannot be attained separately but must be integrated to ensure guest satisfaction. This research contributes that implementing crisis management through preparedness has an essential role in guest satisfaction; practically, hotels are expected to focus on cleanliness quality and strengthen human resources by enhancing employee competencies since they have the highest level of importance in reducing the risk of COVID-19.
 Keywords— COVID-19, Guest Satisfaction, Mid-Scale Hotel, Preparedness

Guest Preferences And Future Challenges In The Post Covid-19 Scenario- An Exploratory Study Of Hotel Front Office Department

Background:The hospitality industry is recovering, evolving, and adapting itself in the post COVID-19 era through innovative and sustainable practices backed by the use of technology in entire hotel operations. The hotel Front Office department is no exception in utilizing these evolved practices to understand and influence the customer behaviour while exploring all possible measures to enhance the overall guest stay experience in the post- COVIDtimes. The Front Office department plays a vital role in the passage of accurate and timely information required for flawless guest management in the hotels. Throughout the COVID-19 period, the Front Office practices have evolved through different stages depending upon the factors such as guest preferences, safety and security measures, hygienic conditions, sustainability and use of technology. Objectives: The major objectives are to study the post COVID-19 Hotel guest preferences of non-star category hotels with respect to changing scenario in the Hospitality Industry, to analyse the gaps between hotel guest expectations and perceptions in service quality with special mention of the front office department and to highlight the future challenges faced by hotel industry and suggest possible measured to overcome these challenges. Methodology: Hybrid research approach has been adopted in this study. Grounded theory in qualitative research approach with interview and semi-structured questionnaires are the data collection tools. Survey method with structured questionnaire are quantitative data collection tools. Collected data were analysed through content and thematic tools for qualitative data and quantitative data were analysed through descriptive statistics (Mean, SD, percentage) and paired t-test as an inferential statistical tool has been applied in this study for conclusion purpose. Results: Result indicates negative as Expected value – perceived value = - (negative). Conclusion: It is concluded that hotel-guests' are not satisfied as provided facilities are not as per guests' expectation. This study gives overview of guests' expectation. It helps hoteliers for modification of hotel's facilities for the guest. The limitation of the study is that the study is conducted in NCR only. Hotels of the same category in the other cities/town may be conducted for getting actual scenario of the phenomena of the hotels. In addition, the study proposes that hotels should adjust their room and service pricing to reflect the reduced demand during the COVID era. Furthermore, the hotel industry will face ongoing challenges, and hotels must be adaptable to remain competitive. By embracing new technologies, providing distinctive experiences, and implementing sustainable practices, hotels can overcome these challenges and flourish in the years ahead.

Dynamics of agglomeration and competition in the hotel industry: A geographically weighted regression analysis based on an analytical hierarchy process and geographic information systems (GIS) data

Research background: The effects of locating next to other establishments of equivalent activity is a decision with serious and far-reaching implications, not only from the point of view of location decisions but also with regard to competitive strategy, pricing, or promotion decisions. The literature provides evidence of the negative effects of being proximate to competitors (erosion of market share), but there are also benefits associated with the increased attraction of demand (attraction effect). This phenomenon is of particular interest in the case of hospitality, where hotel concentrations can be found around certain tourism resources, and is a crucial factor in hoteliers' decisions as they evaluate these contradictory effects. Purpose of the article: Drawing from the relevance that the confrontation between agglomeration and competition has in the hotel industry, our study aims to examine if this confrontation can be driven by geographical location and how both vertical and horizontal differentiation factors can unbalance it. Methods: Based on the use of geographical information systems and the estimation of a geographically weighted regression model with a wide dataset that includes 3,153 European hotels located in Spain, France and the United Kingdom. Findings & value added: We extend agglomeration and competition theoretical bodies related to location decisions by providing new findings about their simultaneous effect. Specifically, this study contributes to filling the gap regarding their combined effects on pricing and the conditions under which one prevails over the other. Results show that the role of geographical location and a hotel?s online reputation are more decisive differentiation factors than hotel category when explaining the asymmetry of the effects of agglomeration and competition.