JOURNAL OF STRATEGIC INNOVATION AND SUSTAINABILITY
Being Boutique in a Hotel Cluster: The Benefits and Threats of Agglomeration
Author(s): Yang Zhang
Citation: Yang Zhang, (2020) "Being Boutique in a Hotel Cluster: The Benefits and Threats of Agglomeration," Journal of Strategic Innovation and Sustainability, Vol. 15, Iss. 4, pp. 43-54
Article Type: Research paper
Publisher: North American Business Press
Drawing on the agglomeration and hotel management literature, this paper identified the benefits, threats and opportunities of being boutique in a hotel cluster. According to the literature on agglomeration, firms that pursue differentiation strategies are more likely to enjoy the benefits of agglomeration rather than suffer from the threats of agglomeration . Being boutique is a classic differentiation strategy in the hotel business. The rise of Airbnb threatens the operational model of a boutique hotel. The author proposes strategic human resource management may allow the boutique hotel to enhance its differentiation advantage by pairing unique features with superior service.