Dynamics of internationalisation of the hotel industry: the case of Spain

Purpose – This paper aims provides an empirical analysis of the development of the internationalisation process in the Spanish hotel industry, which has experienced major changes during the past decade. The degree of internationalisation between 2000 and 2010 is used as a proxy variable with the aim of mapping the development of international strategies. Design/methodology/approach – A longitudinal dataset measuring the internationalisation of Spanish hotel chains is used. Cluster analysis identifies the different behaviour of groups of firms during the analysed period. Findings – Two different clusters are detected, which can be attributed to different internationalisation strategies over time. Small and medium (SME) hotel companies seem to follow a different path of development than more established multinational companies. Over time, the entire group tends to be more compact, whereas the distance between the clusters is shown to diverge in final years. The groups’ composition suggests that business-networking relationships can be a strategy of particular importance for SMEs pursuing international expansion. Practical implications – This paper develops a better understanding of the changes of the internationalisation patterns of Spanish hotel chains. Findings could address managers in strategic decisions about how to improve competitive position. In particular, they recommend accounting for size, international experience and business network relationships when expanded abroad. Originality/value – This paper introduces a new approach based on studying clusters of Spanish hotels according to their internationalisation strategies over the time. Further analysis revealed the role of business network on internationalisation patterns.