Evaluation of Attractiveness of an Industry (the Case of Hotel Industry of Moscow Region)

<p><em><strong>Background of the study</strong></em></p><p>Specifics of the Russian hospitality industry are that, despite the strong growth and perspectives for further development, the industry has many problems, according to many researchers. This uncertainty causes some difficulties in making strategic decisions for investors and current and potential players. That is why the evaluation of the attractiveness of the industry is both timely and important.</p><p>Present study focuses on the area of ​​accommodation provided by the hotel industry. Study is limited by geographical boundaries of the Moscow region, with particular focus on hotels 3 *, 4 * and 5 *.</p><p>Before it has been no complex empirical research conducted on this topic.</p><p><strong><em>Problem statement</em>. </strong>The primary aim of the study is to evaluate the attractiveness of the hotel industry in the Moscow region.</p><p>Within this broad purpose it is necessary to:</p><p style="margin-left:14.2pt;">1)&nbsp; Examine the main strategic instruments for the analysis of the industry attractiveness;</p><p style="margin-left:14.2pt;">2)&nbsp; Determine the connection between accommodation services with other elements of the tourism industry in Russia;</p><p style="margin-left:14.2pt;">3)&nbsp; Identify the main features of the hotel industry in Russia;</p><p style="margin-left:14.2pt;">4)&nbsp; Investigate the main features of hotel industry in the Moscow region (for 3*, 4*, 5* hotels);</p><p style="margin-left:14.2pt;">5)&nbsp; Conduct an analysis of the hotel industry in the Moscow region using the instruments of strategic analysis;</p><p style="margin-left:14.2pt;">6)&nbsp; Evaluate the attractiveness of the hotel industry in the Moscow region.</p><p><strong><em>Object of study</em>:</strong> Hotel industry in the Moscow region.</p><p><strong><em>Subject of study</em>:</strong> The attractiveness of hotel industry in the Moscow region.</p><p>&nbsp;</p><p><em><strong>Methodology</strong></em></p><p>The research is divided into two parts. The first one deals with identifying key factors that are important for hotel industry analysis. For this purpose secondary data is used together with an introductory expert interview.</p><p>The second part of the study is devoted to the carrying out the industry analysis. The questionnaire for experts is developed using the key factors that influence the industry.</p><p>The survey is held with experts who work on the hotel market in the Moscow region. Experts are chosen using snowball sampling method according to the following criterion:</p><p style="margin-left:14.2pt;">- &nbsp;People having a direct relation with the Russian hotel market, whose professional work is connected with the hotel industry;</p><p style="margin-left:14.2pt;">- &nbsp;Social-demographic characteristics do not matter.</p><p>The data received are systematized in order to form the full hotel industry analysis and to indicate whether it is attractive or not.</p><p><strong><em>Delimitations of the study</em>. </strong>The present research is carried out in Moscow with only 10 experts. Moreover, the research covers only on 3*, 4* and 5* hotels, thus the results could not be generalized.</p><p>&nbsp;</p><p><em><strong>Results</strong></em></p><p>The analysis of macroenvironment of hotel industry in the Moscow region has identified the following feature: the positive effect of the driving forces of the industry is stronger than for the negative factors, although the negative factors have a greater degree of uncertainty and risk.</p><p>In the analysis of the microenvironment has identified that the greatest impact on the competitive environment is shown among the factors of industry rivalry and bargaining power of buyers. In addition, the competitive intensity depends on the hotel category, as well as on whether the hotel represent an international hotel chain.</p><p>Results and analysis of the external environment of the Moscow region hotel industry companies were compared with the criteria of attractiveness of the industry. Based on the criteria, the industry can be considered <em>attractive</em>. However, the existence of the uncertain negative factors on the industry requires further research in this direction.</p>