The strategic value of advertising expenditures in the tourism and hospitality industry

• Rui Qi ^[1] ; David Cárdenas ^[1] ; Xichen Mou ^[1] ; Simon Hudson ^[1]
  1. [1] University of South Carolina

     University of South Carolina

     Estados Unidos

     
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 24, Nº. 7, 2018, págs. 872-888
• Idioma: inglés
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• Resumen

  • The purpose of this study is to investigate the strategic value of advertising expenditures in the tourism and hospitality industry. Adopting a market-based valuation approach and longitudinal analysis, this study assesses the magnitude of advertising value by comparing the magnitude of the value with those from other expenses and book value. Results show that the economic benefits from advertising expenditures, unlike other expenses, don’t expire in the current period. Furthermore, advertising expenditures are significant strategic investments in intangible assets, providing greater future economic benefits than other assets. In addition, there is no significant heterogeneity regarding the effectiveness of advertising expenditures across subsectors in the tourism and hospitality industry.