Is hotel revenue performance effective for destination competitiveness? an assessment by wavelet coherence analysis

Abstract

Hotel industry is crucial for destination competitiveness as part of quality tourist infrastructure. The high performance of the industry promises a positive effect on destination competitive. This study aims to develop a approach focusing on the hotel revenue-related performance data in the case of European cities (Istanbul, London, Madrid, Paris, and Rome). Wavelet coherence analysis was applied on revenue data of the years 2013–2022 from 4000+ hotels. Findings reveal time–frequency relationships between hotel revenue variables, highlighting consistent coherence in supply–demand relationships during the pandemic, except for Rome. Furthermore, the analysis detected differentiated patterns in supply–revenue coherence, with Istanbul’s market showing unique fluctuations. London is the city with higher revenue expertise. Key revenue performance indicators of hotels emerged as significant determinants of a city’s competitiveness. These insights present implications for policymakers, community stakeholders, and industry practitioners, emphasizing the pivotal role of adept revenue professionals in improving competitiveness in their destinations.