From Service Orientation to Strategic Operational Capability: Drivers for Hotel Competitiveness in China

Against the backdrop of economic recovery and ongoing market restructuring, China’s hotel industry is undergoing a significant shift from being service-based to becoming strategy-driven and competitive. This study aims to identify the key factors driving hotel competitiveness utilizing a multidimensional quantitative perspective. Based on a structured questionnaire survey administered to hotel managers across provinces and cities in China, primary data was collected from a total of 727 valid responses. As such, exploratory factor analysis, comprising 31 ranked items, and multiple regression analysis were performed using SPSS, identifying four dimensions that significantly affect hotel competitiveness: namely, operational characteristics, service quality, customer satisfaction, and competitive performance. The results show that operational characteristics are the primary determinants of hotel competitiveness. Specifically, sustainable development strategy, digital technology adoption, product and service innovation, and pricing strategies were the most significant factors leading to competitive advantage. Unlike previous studies that emphasized service quality and customer satisfaction as the dominant drivers of competitiveness, this study finds that a hotel’s competitive advantage relies heavily on developing strategic operational innovation and resource allocation capabilities. This study’s novelty lies in its use of national empirical data to validate the multidimensional composition and inherent logical relationships for competitive advantage. It also proposes a multidimensional framework for analyzing hotel competitiveness, specifically designed for the developmental characteristics of China’s hotel industry, highlighting the need to transform from a service-oriented to a strategy-driven operational approach. The findings of this paper offer empirical evidence for hotel enterprises to refine management structures, foster innovation, and thereby develop strong capabilities for a sustainable competitive advantage.