Open Access Journal Article

Variability of Income Flows of Tourism Companies during a Nine-Year Period

by Iovino Felicetta a,b,* orcid
a
Business School, University of London, London, UK
b
Business School, UNICAF, Larnaca, Cyprus
*
Author to whom correspondence should be addressed.
JES  2023 1(2):11; https://doi.org/10.58567/jes01020004
Received: 1 April 2023 / Accepted: 26 July 2023 / Published Online: 16 August 2023
View Full-Text
Download PDF

Abstract

The global financial crisis has affected all countries during the period 2007-2014. Tourist companies, especially in Italy, play a significant role in the economy of a country. The performance of tourism companies, and in particular hotels and travel agencies and tour operators, will be analysed in this paper, relative to the period of the crisis. The aim of this paper is to analyze profitability dynamics of the aforementioned tourist companies, to check whether they have suffered the effects of the global crisis. To this end, data from AIDA database relating to Italian companies in the sector were used. The profitability of these companies has been analyzed using the main profitability ratios, ROI and ROS ratios. An analysis of the trends and ANOVA of these ratios was carried out for the period 2007-2015. In this way, it has been verified whether the global crisis has affected profitability dynamics of hotels and travel agencies and tour operators in Italy. There is a parallelism in the trends of the main operators' indices in the three Italian macro-regions. The best performance is in the South, in a less developed economic context. The crisis has reduced the income indices in the first three years, even if the figure remains positive. Since 2012 there is a clear recovery, especially for hotels; intermediaries, on the other hand, suffer from competition from websites. However, the indices confirm the close relationship between travel agencies, tour operators and hotels. ROI mainly rewards first, while ROS intermediaries.

Keywords: Tourism; Crisis; Profitability; Performance; Ratio;
Copyright: © 2023 by Felicetta. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

Share and Cite

ACS Style
Felicetta, I. Variability of Income Flows of Tourism Companies during a Nine-Year Period. Journal of Economic Statistics, 2023, 1, 11. https://doi.org/10.58567/jes01020004
AMA Style
Felicetta I. Variability of Income Flows of Tourism Companies during a Nine-Year Period. Journal of Economic Statistics; 2023, 1(2):11. https://doi.org/10.58567/jes01020004
Chicago/Turabian Style
Felicetta, Iovino 2023. "Variability of Income Flows of Tourism Companies during a Nine-Year Period" Journal of Economic Statistics 1, no.2:11. https://doi.org/10.58567/jes01020004
APA style
Felicetta, I. (2023). Variability of Income Flows of Tourism Companies during a Nine-Year Period. Journal of Economic Statistics, 1(2), 11. https://doi.org/10.58567/jes01020004

Article Metrics

Article Access Statistics

References

  1. Al-Najjar, B. (2014). Corporate governance, tourism growth and firm performance: Evidence from publicly listed tourism firms in five Middle Eastern countries. Tourism Management. https://doi.org/10.1016/j.tourman.2013.09.008
  2. Beirman, D. (2018). Thailand's approach to destination resilience: an historical perspective of tourism resilience from 2002 to 2018. Tourism review international, 22, 277-292. https://doi.org/10.3727/154427218X15369305779083
  3. Bremser, K., Alonso-Almeida, M.D., Llach, J. (2018). Strategic alternatives for tourism companies to overcome times of crisis. Service business, 12, 2, 229-251. https://doi.org/10.1007/s11628-017-0344-7
  4. Camison, C., Fores, B., Puig-Denia, A. (2016). Return on capital in Spanish tourism businesses: A comparative analysis of family vs non-family businesses. European journal of management and business economics, 25, 91-110. https://doi.org/10.1016/j.redeen.2016.04.002
  5. Carvajal-Salgado, A.L., and Carvajal-Salgado, M.B. (2018). Financing strategies in tourism sectors: hotels and restaurants. Ciencia Unemi, 11, 30-42.
  6. Dogru, T., Bulut, U. (2018). Is tourism an engine for economic recovery? Theory and empirical evidence. Tourism management, 67, 425-434. https://doi.org/10.1016/j.tourman.2017.06.014
  7. Iovino, F. (2014). L’internet marketing nelle imprese energetiche: il caso di un’impresa elettrica romana. Mercati e competitività, 3, 141-161. https://doi.org/10.3280/MC2014-003008
  8. Iovino, F. (2015). Relationship marketing by Energy companies. Review of International comparative management, 16(5), 558-573. https://rmci.ase.ro/no16vol5/02.pdf
  9. Iovino, F. (2019). The profitability of water companies during ten years. In Conference Proceedings: 3rd International Scientific Conference on Economics and Management -EMAN 2019: Economics & Management: How to Cope With Disrupted Times, Ljubljana, Slovenia, March 28th, Printed by: All in One Print Center, Belgrade. https://doi.org/10.31410/EMAN.2019.121
  10. Kubickova, M., Kirimhan, D., Li, H.Y. (2019). The impact of crises on hotel rooms' demand in developing economies: The case of terrorist attacks of 9/11 and the global financial crisis of 2008. Journal of hospitality and tourism management, 38, 27-38. https://doi.org/10.1016/j.jhtm.2018.10.002
  11. Lu, C.L., Chen, S.T., Kuo, H.I. (2018). International tourism demand in Asia: before and after the economic crisis. Asia pacific journal of tourism research, 23, 1073-1085. https://doi.org/10.1080/10941665.2018.1524774
  12. Mensi, W. (2019). Global financial crisis and co-movements between oil prices and sector stock markets in Saudi Arabia: A VaR based wavele. Borsa Istanbul review, 19, 24-38. https://doi.org/10.1016/j.bir.2017.11.005
  13. Podhorodecka, K. (2018). Tourism economies and islands' resilience to the global financial crisis. Island studies journal, 13, 163-184. https://doi.org/10.24043/isj.43
  14. Terhorst, P., Erkus-Ozturk, H. (2019). Resilience to the Global Economic and Turkish (GEO)Political Crisis Compared. Tijdschrift voor economische en sociale geografie, 110, 138-155. https://doi.org/10.1111/tesg.12343
  15. Verdet, A.P., and Sanchez, P.L. (2018). Evaluation of cruise tourism economic sustainability. A methodological approach within the Spanish Mediterranean littoral. Retos-revista de ciencias de la administracion y economia, 15(8), 101-115. https://doi.org/10.17163/ret.n15.2018.07
  16. Zhang, J., Cheng, L., (2019), Threshold Effect of Tourism Development on Economic Growth Following a Disaster Shock: Evidence from the Wenchuan Earthquake, PR China, Sustainability, Vol. 11, Issue 2, Article Number 371. https://doi.org/10.3390/su11020371
  17. Zopiatis, A., Savva, C.S., Lambertides, N., McAleer, M. (2019). Tourism Stocks in Times of Crisis: An Econometric Investigation of Unexpected Nonmacroeconomic Factors. Journal of travel research, 58, 459-479. https://doi.org/10.1177/0047287517753998