This paper positions that human mobility within a hotel's catchment area constitutes a critical determinant of hotel performance, and we examine how this relationship varies across hotel classes and across the pandemic and post-pandemic periods. Building on a gravity-based framework of spatial interaction, we argue that higher local mobility enhances hotel revenue and occupancy. Utilizing a panel of U.S. hotels linked to granular mobility analytics, we find that commercial mobility flows—capturing retail, grocery, workplace, and transit activity—are positively associated with hotel outcomes. Luxury and upscale properties exhibit greater sensitivity to mobility fluctuations, while economy hotels rely more on flexible pricing strategies to offset reductions in mobility. The mobility–performance relationship persists into the post-pandemic period, albeit its magnitude moderates as travel patterns normalize. By reconceptualizing ‘location’ as dynamic human mobility, this study advances theory and offers actionable insights for site selection, marketing positioning, and pricing strategy in hospitality.
Chen et al. (Mon,) studied this question.