Opportunities for hotel development in Budapest: Insights from a qualitative study

Angéla Fekete, Szilvia Módosné Szalai, Dhruv Pratap Singh, Szonja Jenei, Nina Poyda-Nosyk, István Csendes

Article ID: 10712
Vol 9, Issue 1, 2025

VIEWS - 610 (Abstract)

Abstract


The Hungarian tourism and hospitality industry has faced serious challenges in recent years. The tourism and hospitality sector has been confronted with severe challenges in recent years. Even after the end of the pandemic, the industry has not seen the expected recovery, as rising inflation, declining discretionary income and a lack of foreign tourists have further hampered the industry. The hotel market in Budapest in particular has been significantly affected by these developments. Despite the difficulties, investors continue to see opportunities in the market. One example is the purchase by a group of real estate investors of an under-utilised leisure centre in District VII, which they intend to convert into a hotel. Our study is part of this project and its primary objective is to define the parameters of the future hotel and analyse the market opportunities and challenges. Our research focuses on the hotel market in Budapest and uses methods such as benchmarking, STEEP and SWOT analyses, as well as four in-depth interviews with key players in the market. The benchmarking examined the operations of hotels in the capital, while the in-depth interviews provided practical experience and insider perspectives. On the basis of the interviews and analyses, the study identifies possible directions for improvement and factors for competitive advantage.


Keywords


Budapest hotel market; hospitality industry; challenges; benchmarking analysis steep and swot frameworks; tourism in Budapest

Full Text:

PDF


References


Adózóna. (2024). Statistics on commercial accommodation in Hungary. Tax zone web page. Available at: https://adozona.hu Aguiar Quintana, J. T., & Moreno Gil, S. (2023). Hacia un sistema de clasificación hotelera común a nivel europeo. Estudios Turísticos, 197, 11-25. https://doi.org/10.61520/et.1972013.1164 Árva, G., Bognár, F., Erdei, J., & Kövesi, J. (2020). Risk and trust in management. Management Science - Budapest Management Review, 51(Special Issue), 70-84. https://doi.org/10.14267/VEZTUD.2020.KSZ.07 B&B Hotels. (2024). B&B Hotel Budapest City. Available at: https://www.hotel-bb.com/hu/hotel/budapest-city Balázs, M. (2019). Comparative analysis of hotel development concepts in Hungary. Thesis, Budapest University of Economics and Business. Available: https://dolgozattar.repozitorium.uni-bge.hu/2218/ Benkő, B. (2021). Development opportunities of the hotel industry in the North-Hungary region. PhD thesis, Hungarian University of Agricultural and Life Sciences. Available: https://uni-mate.hu/documents/20123/336900/Benko_Bela_ertekezes Boda, E. J., Bába, É. B., Laoues-Czimbalmos, N., & Müller, A. (2019). Special Behaviour - Interdisciplinary Journal, 5(4), 33-44. https://doi.org/10.18458/KB.2019.4.33 Bouncken, R., Qiu, Y., & Clauss, T. (2020). Coworking-space business models: micro-ecosystems and platforms-Insights from China. International Journal of Innovation and Technology Management, 17(5), Article 2050044. https://doi.org/10.1142/s0219877020500443 Calisto, M., & Sarkar, S. (2024). A systematic review of virtual reality in tourism and hospitality: the known and the paths to follow. International Journal of Hospitality Management, 104, Article 103623. https://doi.org/10.1016/j.ijhm.2023.103623 Chen, T. (2019). The applied research on the virtual reality technology in the hotel marketing management. Proceedings of the International Conference on Smart Grid and Electrical Automation (ICSGEA), 63-67. https://doi.org/10.1109/ICSGEA.2019.00063 Colliers. (2024). Hotel Market Report - 2023. Available at: https://www.colliers.com/hu-hu/research/hotel-market-report-2023 Dansereau, F., Yammarino, F. J., & Kohles, J. C. (1999) Multiple levels of analysis from a longitudinal perspective: Some implications for theory building. The Leadership Quarterly, 10(3), 269-293. Demeter, K., & Szigetvári, C. (2022). The link between global production and competitiveness. Corvinus University of Budapest Working Papers, (39), 1-25. Available at: https://www.uni-corvinus.hu Dryglas, D., & Salamaga, M. (2018). Applying destination attribute segmentation to health tourists: a case study of Polish spa resorts. Journal of Travel & Tourism Marketing, 35(6), 699-711. https://doi.org/10.1080/10548408.2018.1435336 Ghazinoory, S., Abdi, M., & Azadegan-Mehr, M. (2011). SWOT methodology: a state-of-the-art review for the past, a framework for the future. Journal of Business Economics and Management, 12(1), 24-48. https://doi.org/10.3846/16111699.2011.555358 Guttentag, D. A. (2010). virtual reality: applications and implications for tourism. tourism Management, 31(5), 637-651. https://doi.org/10.1016/j.tourman.2009.07.003 Gyurácz-Németh, P., Hiezl, K., Németh, M., & Búr, R. (2021). The practical functioning of sustainability in the Hungarian hotel sector. Tourism and Rural Development Studies, 6(2), 25-37. Available at: https://www.turisztikaitanulmanyok.hu Juhász-Dóra, K. (2023). Tradition and innovation in the public spaces of urban hotels. Multidisciplinary challenges, diverse responses - Journal of Management and Organization, 2023(Special Issue 1), 88-116. https://doi.org/10.33565/MKSV.2023.KSZ.01.04 Kabadayı, M., & Zengin, B. (2020). Applications of virtual reality and augmented reality in hotel businesses. Journal of Management Research and Practice, 7(3), 87-102. https://doi.org/10.24010/soid.696483 Kálmán B. G., Dávid L., & Malatyinszki Sz. (2024d). The Role of Geoparks in Sustainable Tourism Development: A Case Study Approach. Geojournal of Tourism and Geosites (GTG), 17(4spl) Kálmán B. G., Grotte J., Lakshmi, V., Tóth A., Módos-Szalai Sz., Zugor Zs., & Malatyinszki Sz. (2024a). Sustainable city tourism—A systematic analysis of Budapest and Mumbai. Journal of Infrastructure, Policy and Development (JIPD), 8(9). ID: 7933. http://doi.org/10.24294/jipd.v8i9.7933 Kálmán B. G., Malatyinszki Sz., Bárczi J., & Zéman Z. (2024b). Corrupción e Inclusión Financiera en Hungría y México [Corruption and Financial Inclusion in Hungary and Mexico, in Spanish]. Revista Mexicana de Economía y Finanzas Nueva Época // Mexican Journal of Economics and Finance (REMEF), 19(2). ID: e1015. http://doi.org/10.21919/remef.v19i2.1015 Kálmán B. G., Malatyinszki Sz., Zugor Zs., & Szőke B. (2024c). Perceived Corruption in Light of Green Transition Indicators. Revista de Gestão Social e Ambiental // Environmental and Social Management Journal (RGSA), 18(3). ID: e07855. http://doi.org/10.24857/rgsa.v18n3-166 Karakasné Morvay, K. (2021). The relationship between quality improvement and guest satisfaction in the Hungarian hotel industry. PhD thesis, Corvinus University of Budapest. Available: https://real-phd.mtak.hu/1229/1 Kurttila, M., Pesonen, M., Kangas, J., & Kajanus, M. (2000). Utilizing the analytic hierarchy process (AHP) in SWOT analysis-a hybrid method and its application to a forest-certification case. Forest Policy and Economics, 1(1), 41-52. https://doi.org/10.1016/S1389-9341(99)00004-0 Malatyinszki Sz., Módos-Szalai Sz., Jenei Sz., Kerekes E., Kálmán B. G. (2024a). Impact of Material Consumption and Circular Economy on National Income in Europe – Chapter 1. Revista de Gestão Social e Ambiental // Environmental and Social Management Journal (RGSA), 18(11). ID: e09634. http://doi.org/10.24857/rgsa.v18n11-035 Malatyinszki Sz., Módos-Szalai Sz., Jenei Sz., Kerekes E., Kálmán B. G. (2024b). Impact of Material Consumption and Circular Economy on National Income in Europe – Chapter 2. Revista de Gestão Social e Ambiental // Environmental and Social Management Journal (RGSA), 18(11). ID: e09639. https://doi.org/10.24857/rgsa.v18n11-041 McLean, G., & Barhorst, J. B. (2021). living the experience before you go... but did it meet expectations? The role of virtual reality during hotel bookings. Journal of Travel Research, 60(4), 637-650. https://doi.org/10.1177/00472875211028313 Nagy, I. (2014). Characteristics of tourism innovations. In Marketingkaleidoscope 2014 - Innovation-driven marketing. University of Miskolc Marketing Institute. https://doi.org/10.13140/2.1.2538.3204 Németh E., Kálmán B. G., & Malatyinszki Sz. (2024). Pénzügyi biztonság Magyarországon: a 2023-as OECD-felmérés eredményeinek kettős nézőpontú elemzése [Financial security in Hungary: A dual perspective analysis of the 2023 OECD survey results, in Hungarian]. Statisztikai Szemle // Hungarian Statistical Review, 102(9), pp. 896–915. https://doi.org/10.20311/stat2024.09.hu0896 Nguyen, N.-T., & Nguyen, L.-X. T. (2019). Applying DEA model to measure the efficiency of hospitality sector: the case of Vietnam. International Journal of Analysis and Applications, 17(6), 994-1018. https://doi.org/10.28924/2291-8639-17-2019-994 Pajrok, A. (2023). Competitive strategies in the hotel industry - The practice of Hungarian hotel companies. Vezetéstudomány - Budapest Management Review, 54(3), 54-69. https://doi.org/10.14267/VEZTUD.2023.03.05 Palatinus, B. (2014). Methodological issues of benchmarking studies of the process structure at Debrecen International Airport. Agricultural Science Publications, 58, 147-154. Available from: https://ojs.lib.unideb.hu/actaagrar/article/download/1987/1887 Rahman, M., & Islam, R. (2018). Importance-performance analysis of service quality dimensions for the Bangladeshi hotel industry. International Journal of Business and Systems Research, 12(4), 365-390. https://doi.org/10.1504/IJBSR.2018.095600 Sauvant, K. P., Mallampally, P., & McAllister, G. (2010). UNCTAD Publications. TRIBE Hotels. (2024). TRIBE Budapest Stadium. Available at: https://tribehotels.com/en/hungary/budapest-stadium/ Turizmus.com. (2024). Ibis & TRIBE Budapest Stadium Hotel. Available at: https://turizmus.com/ Tussyadiah, I. P., & Miller, G. (2019). Perceived impacts of artificial intelligence and responses to positive behavior change intervention. International Journal of Information Management, 48, 63-74. https://doi.org/10.1016/j.ijinfomgt.2019.01.007 World Economy (2023). Budapest hotel capacity after the Covid-19 epidemic. Világgazdaság website. Available at: https://vilaggazdasag.hu Zhang, A., & Xiao, H. (2024). Psychological well-being from virtual tourism: a mixed method approach. Asia Pacific Journal of Tourism Research. https://doi.org/10.1080/10941665.2024.2343066



DOI: https://doi.org/10.24294/jipd10712

Refbacks

  • There are currently no refbacks.


Copyright (c) 2025 Angéla Fekete, Szilvia Módosné Szalai, Dhruv Pratap Singh, Szonja Jenei, Nina Poyda-Nosyk, István Csendes

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.