THE PECULIARITIES OF COMPETITION IN THE HOTEL SERVICES MARKET OF THE REPUBLIC OF MOLDOVA

Abstract

The hotel services market in the Republic of Moldova plays a pivotal role in the country's economic development, particularly through its contribution to tourism. The present study explores the competitive dynamics of Moldova's hotel industry across its three regions: The geographical location in question is divided into three distinct regions: Centre, North, and South. By examining market structures, barriers to entry, and external and internal influencing factors, the study identifies regional disparities and their effects on competition. The research employs theoretical and analytical methodologies, integrating statistical analysis to evaluate the monopolistic competition characteristics of urban markets, such as Chișinău, and the fragmented nature of rural accommodations in the North and South. The findings reveal disparities in competition levels across regions. Chișinău is characterised by a preponderance of international chains and mid-range hotels, exhibiting monopolistic competition with oligopolistic traits in the luxury segment. In contrast, rural areas in the North and South are characterised by fragmented markets with limited offerings and lower barriers to entry, relying on niche tourism segments such as wine tourism and eco-tourism. The study emphasises the pivotal function of digital marketing, government policies, and infrastructure in determining competitiveness. The research provides practical recommendations for enhancing the competitiveness and sustainability of the hotel industry. These recommendations include region-specific strategies for improving service quality, enhancing digital presence, and promoting collaboration between local and international stakeholders.