Revisiting the Taxonomy of Market Exit Strategies in Hotels

Author(s): Lyudmila Igosheva, Viachaslau Filimonau, Vladimir A. Ermolaev

Abstract: Theories of service firm life cycle do not explain what happens to a hotel at the end of the decline stage. Although market exit is one of the possible outcomes of business decline, it is under-researched. Yet, such research is critical for understanding the options available to a hotel in a time of crisis. By interviewing senior managers with the experience of failed hotels (n=17), this study revisits a taxonomy of market exits to reconceptualize the decline stage of a hotel’s life cycle. The study shows that, on some occasions, market exits can affect hotels positively rather than negatively, thus leading to business regeneration. Investors/owners play a central role in market exits and their cognition determines how market exit impacts the business future. The study positions turnaround not as a market exit, but as a strategy which can lead a hotel to it or away from it.

Date Published: 7 May 2024

Depositing User: Selina Gondwe

DOI: https://www.sciencedirect.com/science/article/pii/S0278431924000896?via%3Dihub

Keywords: Service firm life cycle; Crisis management; Market exit; Turnaround; Managerial capability; Hotel

Page(s): 1-12

Publication Title: International Journal of Hospitality Management

Publisher: Elsevier

Subject(s): Hospitality

Type of publication: Research