Leveraging knowledge via location proximity among hotels and short-term leases

The current study examines the competitive implications of geographical proximity between properties managed by the same entity in the hospitality industry. Using a knowledge-based perspective, we find that shorter distances between properties managed by the same hotel management company or short-term lease host enhance their competitive advantage. Interestingly, a larger number of short-term lease properties, managed by the same host within a cluster, strengthens competitiveness, but this pattern is not observed for hotels. The research also highlights the role of digital platforms, showing that an increased number of short-term leases listed on the same platform enhances the competitive advantage. These insights underscore the criticality of both physical proximity and effective knowledge management in the hospitality industry. It also emphasizes the differing dynamics between traditional hotels and short-term leases, suggesting that strategies should be tailored to the unique characteristics of each accommodation type.