An analysis of the perceived effects of economic and monetary union on hotels in the north of Portugal: implications for management

Purpose: The purpose of this paper is to reflect on the perceived implications of economic and monetary union (EMU) as a driver for changes in the hotel business environment and, consequently, on Portuguese competitiveness, in terms of the conceptual framework and methodology adopted and showing the way how it may contribute to help managers and decision makers to effectively manage their competitive strategies. Design/methodology/approach: The paper adopted and adapted Porter's models (Diamond, Five Forces and Value Chain) as the basis for analysing the implications of EMU upon the hotel business environment (at national, industry and operational level). Those implications are the ones perceived by the stakeholders in that sector: public authorities, trade associations and hoteliers. Findings: The findings indicated that EMU not only changed the hotel business environment at a national level, but also changed the competitive and operational environment. Nonetheless, as this study found, the hotel stakeholders had relatively different hopes and fears concerning EMU. Practical implications: The paper offers a conceptual framework sufficiently versatile (regarding the context of the study) which can be used by decision makers or managers as a tool to understand their business environment and, consequently, to cope with potential challenges. Originality/value: Two of the innovative features of this study are: the triangulation of perspectives on the implications of EMU on hotels and the use of a combination of Porter's models as a suitable tool for studying the implications of EMU in the services sector. This can be useful to service decision makers and managers that seek to cope with the business environment challenges.