What is the Impact of digital tools on hospitality business performance? The case of SME accommodation sector in Portugal

Abstract

Despite numerous studies on digital tools in tourism and hospitality, few quantitative investigations use an integrated set of these tools to enhance business success. This study examines the impact of digital tools on hospitality business performance, using data from 234 SMEs in Portugal's accommodation sector. Findings show that integrating tourist accommodation into business groups positively influences digital tool adoption. Higher investment in business digitalisation also positively affects tool adoption and overall performance. The most valued digital tools by Portuguese SMEs include updated websites, social networks, online store/reservation systems, and digital marketing. This study provides valuable insights for tourism marketers and business managers to enhance SMEs' competitiveness in the hospitality sector.