An Analysis of Hotel Industry Performance over the Business Cycle under the Different Political Administrations

The political category is one of the most volatile and diverse environmental sectors influencing the hospitality firm. Multi-unit firms that operate internationally are confronted with a plethora of laws, regulations, currency policies, and local customers and traditions in the course of their daily business activities. This study explored the relationship between hotel industry performance and political administrations as a key remote business environment factors. This study identified that the business cycle duration and relationship between expansion and contractions between general business cycle and hotel industry cycle is significantly different, and political administration affects the business performance of the hotel industry. This study also revealed that there is significant difference between hotel industry performance under Republican administration and the performance under Democratic administration.