A Framework of Core Competencies for Effective Hotel Management in an Era of Turbulent Economic Fluctuations and Digital Transformation: The Case of Shanghai, China

Abstract

In the context of macroeconomic recovery and accelerating digital transformation in the post-pandemic era, the hotel industry in China is undergoing profound structural changes. This research investigates the core competencies required for hotel managers to navigate these challenges. Data was collected via a quantitative survey involving a structured questionnaire, was conducted among hotel managers in Shanghai, China, resulting in 404 valid responses. Employing exploratory factor analysis using SPSS, this study identifies seven key competency dimensions encompassing 36 ranked items, including interpersonal communication, leadership, operational knowledge, human resource management, financial analysis, technology, and administrative management. The results show that economic recovery has brought new opportunities but also challenges to the hotel industry, and that managers must possess a diverse set of core competencies to adapt to the demanding new market changes. The novelty of this research lies in its empirical grounding and its focus on the intersection of digitalization and economic recovery within China’s hotel industry. It pioneers a dynamic strategic competency framework tailored to the evolving demands of the hotel industry during a period of economic volatility, providing empirical evidence and advice for optimizing the industry’s talent training systems. Simultaneously, it brings a new perspective for dealing with the recovery path for the hotel enterprises in other urban and travel destinations, aiming to promote industry sustainability and competitive advantages. Future research could extend the proposed framework by exploring its applicability across different cultural and economic contexts.

1. Introduction

The hotel industry has undergone significant transformation due to economic crises and the emergence of the digital economy. Economic recessions, such as the 2008 global financial crisis and the COVID-19 pandemic, forced hotels to implement leaner operations and reevaluate business models to remain viable amidst declining travel demand (Ivanov & Webster, 2013; Giousmpasoglou et al., 2021). Simultaneously, the digital economy has revolutionized customer behavior and operational strategies. The rise of online travel agencies (OTAs), review platforms like TripAdvisor, and peer-to-peer lodging platforms such as Airbnb has reshaped competitive dynamics, shifting power toward consumers and digital intermediaries (Zeng, 2018; Guttentag, 2015). To adapt, hotels have embraced digital tools for dynamic pricing, customer relationship management, and personalized marketing. Artificial intelligence and big data analytics are progressively employed to improve customer experiences and optimize internal processes (Tussyadiah & Miller, 2019). The digital economy has also democratized information, compelling hotels to maintain consistent quality and transparency. Thus, the convergence of economic pressures and digital disruption has not only altered revenue models and marketing approaches but also catalyzed a broader transformation toward innovation, resilience, and customer-centricity in the hotel industry.

Specifically, Shanghai is a prominent center for economics, transportation, science and technology, industry, finance, exhibitions, and shipping in China. According to data from the Shanghai Municipal Administration of Culture and Tourism official website, following the effects of the pandemic in 2020, the added value of the tourism industry was 131.411 billion yuan, a decrease of 42.0% from the previous year. In 2023, the added value of the tourism industry reached 177.124 billion yuan, an increase of 98.5% from a year earlier. The total number of tourists received and total tourism revenue in Shanghai from 2020 to 2024 are shown in Figure 1.

Data from the Shanghai Municipal Administration of Culture and Tourism official website show that, in 2024, Shanghai received a total of 397.02 million domestic and foreign tourists and realized total tourism revenue of 576.24 billion yuan, both of which set historical records. According to official data from the Shanghai Statistics Bureau, in 2024, Shanghai’s GDP reached 5140.447 billion yuan, with an increase of 5% compared to the previous year (Shanghai Statistics Bureau, 2025d), ranking among the top in the world. The recovery of the tourism market has directly boosted the hotel industry’s revenue. The turnover of Shanghai’s above-norm accommodation and catering enterprises reached 163.18 billion yuan in 2024 (Shanghai Statistics Bureau, 2025a). As of the end of April 2025, Shanghai received 2.6048 million inbound tourists, and the operating income of accommodation and catering enterprises for the first quarter in 2025 was 40.009 billion yuan (Shanghai Statistics Bureau, 2025b; 2025c).

All indicators of Shanghai’s hotel industry have exhibited strong performance amid economic recovery. Simultaneously, the structural challenges the hotel industry faces are becoming increasingly prominent. On the one hand, the shrinking demand of business customers has forced the industry to transform into a mixed model of leisure and business; on the other hand, the 14th Five-Year Plan for the Development of China’s Digital Economy mandates that by 2025, the service industry should increase the penetration rate of digitalization (State Council of the People’s Republic of China, 2022), which introduces new requirements for managers’ competencies. Although extensive research has been conducted on the competencies required for effective hotel management, most studies have predominantly concentrated on the routine operational stage of hotels within stable or mature market environments (Kay & Russette, 2000; Tesone & Ricci, 2006; Nolan et al., 2010). Similarly, Busulwa et al. (2022) address competencies in contexts unaffected by significant external disruptions. These frameworks provide a valuable foundation for building employee competency while offering limited insights into the dynamic adaptation competency during the economic recovery. The COVID-19 pandemic has profoundly impacted the global hospitality and tourism industry, bringing unprecedented challenges. Although the hotel industry is gradually recovering, the COVID-19 pandemic continues to exert profound impacts on the operational dynamics of hospitality businesses (Zhong et al., 2022; Gursoy & Chi, 2020). Recent research emphasizes the evolving role of hotel managers in the post-COVID-19 era. Arora et al. (2024) systematically reviewed the literature and pointed out that employees’ skills are shifting from emotional to practical ones in the post-pandemic era. Promnil et al. (2024) conducted research in Thailand and established a post-pandemic employee competency framework, emphasizing employees’ adaptability and sustainability. However, a substantial gap remains in the literature in relation to the development of managerial competencies to address the short-term volatility and long-term structural adjustments inherent in post-pandemic economic recovery, particularly in the context of developing economies like China. This study addresses this gap by presenting and experimentally verifying a dynamic competency framework specifically designed for China’s hotel managers in the economic recovery phase.

This study was conducted through a comprehensive literature research and a survey questionnaire. Firstly, through a literature review, this paper systematically summarizes the previous studies on the competencies required for hotel practitioners, providing a specific theoretical basis for this article. To obtain feedback that was more aligned with the current economic situation, the questionnaires were distributed to 192 hotels in Shanghai, and managers at different levels and positions in these hotels were invited to fill in the questionnaires.

The primary objective of this research study is to investigate and delineate the core competencies essential for hotel managers in Shanghai amidst the ongoing macroeconomic recovery in the post-pandemic era, a period characterized by significant transformation and upgrading within the service economy (Le & Phi, 2021). The study seeks to construct a dynamic competency framework tailored to the specific conditions of economic fluctuation, offering a practical tool for optimizing talent training systems within the hotel industry. It is worth noting that Shanghai is a major tourist destination for many international tourists. It is known for its cultural significance, advanced infrastructure, effective governance, and relatively high service quality. This study seeks to contribute to the broader understanding of the hotel industry’s recovery trajectory in China, using Shanghai as a case study to provide insights applicable to other cities undergoing similar economic transitions, to bolster China’s hotel industry’s resurgence, fostering a more resilient and adaptable hospitality workforce nationwide. The specific objectives of this study are as follows:

• Identify core competencies: from the perspective of hotel managers, a series of core competencies critical to the economic recovery phase are identified, and their importance ranking within the industry is evaluated.
• Categorize core competencies through factor analysis: exploratory factor analysis is conducted on the collected survey data to reveal the latent categories that constitute the hotel industry competency variables. This statistical method will clarify the relationship between these competencies and facilitate the selection of industry-appropriate talents in a targeted manner.
• Identify factors that affect hotel managers’ perspectives through t-tests and one-way analysis of variance: examine various demographic data to ascertain whether hotel managers from diverse backgrounds maintain uniform priorities regarding competency requirements during the economic recovery phase, and establish a foundation for focused training while enhancing the allocation of hotel resources. This will bolster industrial resilience and restore economic vibrancy.

The remainder of this paper is structured as follows. Section 2 presents a comprehensive literature review on the relationship between economic fluctuations and the development of hotel employees’ competencies, the identification of required competencies for hotel participants, and the impact of digital transformation on the hotel industry’s development. Section 3 presents the research design, sampling process, data collection methods, and data analysis procedures. Section 4 presents the analysis results and findings of the study. Section 5 discusses the results of this study. Section 6 presents the conclusions, limitations, and suggestions for further research.

2. Literature Review

Economic turbulence refers to a period of high uncertainty and unpredictable rapid changes in the macroeconomic environment, such as recessions, recoveries, and policy shocks (Boyne & Meier, 2009). Zunaidi et al. (2024) suggest that economic turbulence refers to a precarious state of the economy in a region or country. According to Kim and Ployhart (2014), economic turmoil is prevalent; however, it frequently arises unexpectedly, and changes the competitive dynamics of industries and enterprises, typically resulting in diminished profits and austerity measures (Bloom, 2014). Maley (2019) identified the benefits of continuous employee competency development methods during economic turbulence, including enhancing human capital while meeting financial obligations. McCarthy (2014) found that leadership competencies based on clear communication, personal capabilities, and strategic capabilities are essential in crises. Consequently, there is evidence that managers with specific competencies are more vital in navigating crises during economic turbulence.

Sandwith’s (1993) competency framework remains extensively applied in organizational studies. This model delineates five core domains: technical proficiency, interpersonal collaboration, conceptual reasoning, leadership execution, and administrative governance. Subsequent empirical investigations have refined the framework to address evolving socioeconomic contingencies. This literature review systematically synthesizes research on core competencies required for hotel industry practitioners, particularly Marneros et al.’s (2020) provocative competency framework, to map contested epistemological terrain, identifying which competencies truly withstand operational realities rather than simply satisfying theoretical expectations. Professional consensus increasingly prioritizes adaptive resilience over static competency inventories. Their framework clusters six dimensions: leadership and critical thinking, information technology and financial analysis, human relations and communication, interpersonal communication and cultural diversity, human resource management, and professional image and operational knowledge. This model was confirmed by Papageorgiou et al. (2024), who summarize other scholars’ research, and can be traced in the previous literature.

Effective leadership and management competencies are important for successful hotel organizations. Leaders in the hotel industry play a pivotal role in directing the teams, taking effective business decisions, and managing the operations of the hotel. Lashley (2009) indicates that hotel leaders need to possess a combination of soft skills and hard skills. These include interpersonal skills, strategic thinking, and financial skills. Contemporary efficacy hinges on catalytic competencies like rapid conflict mediation and forethoughtful decision-making. Also, hotel managers should master the ability to motivate employees effectively and provide development opportunities (Chen & Wu, 2020; Nguyen et al., 2022). Emotional intelligence is important for managers to handle interpersonal relationships within the team and with guests, which will contribute to the overall organizational climate (Prentice et al., 2022). Researchers found that transformational leadership can inspire and motivate employees to work at their best and contribute to the hotel business (Brownell, 2010; Bass & Riggio, 2006). They may create a positive organizational culture, stimulating innovation, improving employee engagement, and thus delivering superior service and operations (Wang et al., 2020; Cheng & Yi, 2018). Effective leaders should also be able to create a positive organizational culture, encourage teamwork, and implement best human resources practices in the hotel.

Strategic thinking competency is vital for higher-level management roles in the hotel industry. Studies by Enz and Siguaw (2000) highlight managers’ need for strong analytical abilities and a strategic vision to navigate the highly competitive and dynamic hotel market. Bowie and Buttle (2023) assert that strategic thinkers can identify growth opportunities, optimize resources, and implement innovative solutions. Problem-solving skills are equally important, enabling professionals to address challenges efficiently and creatively. One key aspect of strategic thinking is environmental scanning, which systematically analyzes external factors that could influence the organization. This includes understanding economic trends, technological advancements, socio-cultural shifts, and regulatory changes (Harrison et al., 2020).

The digital transformation of the hotel industry has emerged as an irreversible trend. It represents a technological innovation and a profound change in business philosophy and management methods. The digital transformation can improve efficiency, optimize customer experience, and enhance competitive advantage. Hotel digital transformation refers to the use of various digital tools, including mobile applications, big data analysis, cloud computing, artificial intelligence, and the Internet of Things, to achieve operational automation, personalized services, and intelligent decision-making (Farías & Cancino, 2021). The rapid development of information technology presents the traditional tourism and hospitality industry with a novel competitive environment and changes in consumer behavior (Zhang, 2023). Hotels must actively embrace digital transformation and continuously innovate service models and management techniques to remain invincible in the fierce market competition. Digital transformation is essential for the hotel industry to adapt to contemporary trends and achieve sustainable development, serving as a key strategy to enhance competitiveness (Wynn & Lam, 2023).

The advent of technology has changed the way in which the hotel industry operates and has been widely recognized by scholars. Some scholars argue that soft technical competencies are important where a thorough knowledge of the hotel industry operations is essential. These include food and beverage management proficiency, front office operations, housekeeping, and hotel information systems. For instance, Tsaur and Lin (2004) stressed the importance of operational expertise in delivering quality service. However, other scholars have argued that proficiency in advanced technological competencies is essential in the hotel industry as it is increasingly reliant on technology for reservations and customer relationship management. Law et al. (2009) stressed that technology should be strategically used in hotel operations. This will enable the hotel to make data-driven decisions, optimize hotel processes, and deliver personalized services to customers, which is the basis of the hotel’s competitive advantage. Technical competencies are important in the face of technology integration in hotel management. Law et al. (2018) argued that employees need to have a certain degree of technology competence; also, continuous training is needed to adapt to the development of information technology to improve hotel performance. Gretzel et al. (2020) believed that using technical software and updating knowledge on new technology, such as artificial intelligence and data analytics, would be beneficial. Furthermore, a study by Magalhães et al. (2022) assessed that the hotel industry needed to transform during the pandemic, and that digital technology competencies are indispensable.

Park and Jang (2014) argued that financial literacy is important for hotel managers. Managers with financial competencies can make wise financial decisions that contribute to the profitability of the hotel. The study confirmed the findings of previous studies. To ensure profitability, managers in hotels should be skilled in budgeting and financial planning as well as revenue management and using data analytics for decision-making (Singh et al., 2015). The effectiveness of revenue management will significantly influence the profitability of the hotel since dynamic pricing and forecasting are very important (Noone et al., 2017).

Customer service and interpersonal competencies are of great importance for the hotel industry as it is a service industry, which is characterized by frequent interactions with customers. Service orientation is the inclination to meet the needs and demands of customers. Most studies repeatedly emphasize the importance of communication and negotiation skills, understanding customers, and the ability to anticipate and promptly handle complaints (Karatepe & Vatankhah, 2015; X. Li et al., 2019). Meng and Liang (2022) argued that customer-oriented service includes understanding and meeting customer needs, offering personalized service, and solving customer problems on time. Lam and Chen’s (2012) research revealed that communication, empathy, and problem-solving are essential interpersonal competencies in effective service delivery and customer relationship management. These human-centric competencies amplify technological interfaces rather than being supplanted by them. These core competencies are must-haves for hotel employees to create positive customer experiences and maintain long-term customer relationships. Employees who provide warmth, friendliness, and a desire to satisfy guests and meet the needs of the guests could increase guests’ positive experiences. Also, active listening, communication, and personalized services are essential to manage customer expectations, which have a positive influence on customer retention in the fierce market competition (J. J. Lee et al., 2016; Mehta et al., 2023). Customer-oriented service is the foundation of the hotel industry, which is essential in the hotel industry since it is a dynamic industry.

Effective communication, empathy, and teamwork are repeatedly cited as core competencies. The ability to relate to guests and co-workers in a positive way influences customer satisfaction and loyalty, according to Baum (2006). Hotel staff with strong communication competencies are linked to better work, strong morale, and higher customer satisfaction (Magnini & Honeycutt, 2020; Günaydın & Kozak, 2022). Kusluvan et al. (2010) also revealed that interpersonal competencies are important in managing diverse teams and establishing the organizational culture of the company. This is essential for creating a smooth service and operating the hotel.

Cultural adaptability is considered to be one of the key core competencies in the hotel industry in the globalized world. Reisinger and Turner (2012) pointed out the importance of cultural competence in dealing with cross-cultural customers and improving customer satisfaction. Research indicated that employees with higher levels of cultural intelligence are more adept at delivering quality service and achieving higher customer satisfaction, as they are more likely to anticipate and serve customers’ needs from different cultures (Grobelna, 2018; L. Y. Lee & Sukoco, 2018). Vassou et al. (2017) pointed out that it is essential for employees in the hotel industry to have cultural intelligence, as they need to deal with guests from different cultures. Guest experiences are based on smooth interactions, which pose relevant challenges to hotel practitioners. Singh and Kim (2021) also explained that every professional should be aware and respectful of the diverse backgrounds, preferences, and expectations of customers. This requires language skills, cultural sensitivity, and the ability to adapt services for international guests.

Human resource management needs to be strong within the organization to enhance the diverse competencies of the employees, to achieve a robust work culture inside the organization to enhance employees’ competencies, and to greatly improve the organization’s effectiveness (Rao, 1987). Werner and DeSimone (2006) asserted that managing the development of human resource competencies will enhance the firm’s overall success. Enz (2009) indicated that the hotel industry is perceived as a people-centric sector, and the efficient management of human resources constitutes a significant challenge for this industry. Kay and Moncarz (2007) researched the professional competencies of effective hotel managers, and identified human resource management as the first-order competency. This perspective has been corroborated repeatedly in Vaitiekunaite’s research (2022), which points out that it must be methodical, timely, connected with labor market demands and global transformations, and adaptable to a perpetually evolving environment. In the 21st century, human resource management has emerged as essential for linking organizational performance with efficiently utilizing human capital (Kess-Momoh et al., 2024). The hotel industry is labor-intensive, and employees’ competencies, attitudes, and service awareness directly influence the client experience. Managers can cultivate productive teams via proficient human resource management.

Kay and Russette (2000) showed that managers need to master a few specific functional area competencies. To complete the work effectively, managers must possess professional knowledge and competencies that can be applied in practice, which strongly influences the quality of customer service (Agut & Grau, 2002; Çizel et al., 2007). Chung-Herrera et al. (2003) pointed out that leaders with industry expertise might exemplify role models for other employees; moreover, most hotel middle managers interact directly with clients. The quality of service and guest care directly influence hotel business performance, making operational knowledge necessary. Bharwani and Talib (2017) established a skill framework that further demonstrates the importance of managers mastering professional knowledge and competencies.

3. Methodology

3.1. Research Design

First, this research study primarily relied on the literature review method to comprehensively summarize and analyze the existing literature on the core competencies required in the hotel industry. The aim was to identify the essential core competencies needed to best suit the current landscape of hotel trends within the context of a stable recovery of the Chinese economy, facilitate the reform of the hotel industry, and promote sustainable development.

Based on this purpose, the following two research questions were formulated:

• RQ1: What competencies do hotel managers in Shanghai, China, regard as vital in the context of rapid economic recovery?
• RQ2: Do the perspectives of hotel managers vary according to age, gender, educational background, management level, and functional area?

To address the above questions, a quantitative survey was developed. The questionnaire’s design is based on the model by Marneros et al. (2020), with written permission granted by the copyright holder, and integrates findings from the prior literature, aiming for maximal comprehensiveness. The questionnaire comprises 43 questions, including six demographic and background questions, one polygraph question, and 36 questions related to competencies. The research employed a Likert scale.

3.2. The Sampling Process and Data Collection

This research employed convenience sampling. The questionnaire was sent directly to each hotel’s general manager or department head via an online link. These individuals usually began by working in entry-level positions, proceeded to accumulate experience and be promoted, and now hold management positions at different levels. Collecting the views of such hotel managers provides first-hand information about the industry, thereby making it possible to achieve an in-depth understanding of the current hotel industry. A total of 441 people filled out the online questionnaire. Some 26 responses were incomplete and 11 individuals failed the polygraph test, so the actual number of responses received was 404.

3.3. Data Analysis

This study used SPSS 26.0 and employed various data analysis methods to interpret the responses to the questionnaire survey. The questionnaire used in this study was adapted from a mature scale. To ensure the reliability and validity of the instrument, throughout the data analysis phase, reliability and validity assessments were conducted to enhance the legitimacy of the survey outcomes. This study employed exploratory factor analysis to discover the potential dimensions of competencies within the hotel industry. Subsequently, independent sample t-tests and one-way analysis of variance were performed to ascertain whether the demographic features of the respondents influenced the significance of their assessed talents.

4. Results

This section elaborates on the statistical analysis carried out on the collected survey data. Through a comprehensive analysis of 36 competencies, this paper develops a competency framework that describes and ranks the core competencies required of hotel managers in Shanghai, China, during a period of rapid economic recovery.

A comprehensive descriptive statistical analysis was performed.

Table 1. Demographic profile of the respondents (Source: Authors own work).

Characteristic		Frequency	Percent
Gender	Male	189	46.8
	Female	215	53.2
	Total	404	100
Age	18–30 years old	56	13.9
	31–40 years old	180	44.6
	41–50 years old	133	32.9
	Over 50 years old	35	8.7
	Total	404	100
Education Background	College/University—2-years diploma (Vocational College, Associated Degree, etc.)	82	20.3
	College/University—4-years diploma	234	57.9
	Graduate Degree—Master’s degree	88	21.8
	Total	404	100
Years of Employment	3 years and below	17	4.2
	4–10 years	61	15.1
	More than 10 years	326	80.7
	Total	404	100
Managerial Level	Entry Level—Supervisor	246	60.9
	Middle Level—Department Leader	136	33.7
	Upper Level—Top Administration	22	5.4
	Total	404	100
Functional Areas	Upper Management/Top Administration	60	14.9
	Front Office Department	130	32.2
	Food and Beverage Department	91	22.5
	Housekeeping Department	97	24
	Other Department	26	6.4
	Total	404	100

describes the respondents’ primary demographic characteristics and frequency distribution of this questionnaire survey. The data include gender, age, educational background, years of employment, managerial level, and functional area. Table 1 indicates that out of 404 respondents, 189 (46.8%) were male and 215 (53.2%) were female. The predominant age group was 31–40, comprising 44.6% of the population. Concerning educational attainment, 57.9% possessed a college or four-year diploma, while 21.8% held a graduate degree or above. Some 80.7% of employees had employment experience exceeding 10 years. Regarding management level, 60.9% were entry-level supervisors, while 33.7% were mid-level departmental leaders. Regarding the distribution of functional areas, 32.2% of respondents were from the front desk department, 22.5% were from the food and beverage department, and 24% were from the housekeeping department. These data show a balanced gender ratio among respondents, with the majority being relatively young and possessing extensive job experience, facilitating a more profound comprehension of the personnel structure involved in the survey.

Table 2. Reliability Statistics (Source: Authors own work).

Cronbach’s Alpha	N of Items
0.947	36

shows a Cronbach’s Alpha score of 0.947, indicating strong internal consistency and good reliability. This suggests that the questionnaire could accurately assess the core competencies of hotel managers in this study.

Table 3. KMO and Bartlett’s Test (Source: Authors own work).

Kaiser–Meyer–Olkin Measure of Sampling Adequacy.		0.945
Bartlett’s Test of Sphericity	Approx. Chi-Square	9442.262
	df	630
	Sig.	0.000

shows that the KMO value is 0.945, which exceeds the recommended threshold of 0.8, indicating that the correlation between variables is strong and the common factors can be effectively extracted. The approximate chi-square value of Bartlett’s Test of Sphericity is 9442.262, with 630 degrees of freedom and a significance level of 0.000, which is below 0.05, thereby rejecting the null hypothesis that the correlation matrix is the identity matrix. This further suggests a significant correlation between the variables. In summary, these results validate the suitability of the dataset for conducting exploratory factor analysis (EFA).

As shown in

Table 4. Rotated Component Matrix (Source: Authors own work).

	Component
	1	2	3	4	5	6	7
Having clear goals and working in a planned and organized manner				0.721
Directing and supervising the work of others				0.699
Adapting to ever-changing circumstances				0.724
Making decisions under pressure and crisis				0.777
Keeping abreast of the industry’s current status and the latest development trends				0.743
Complying with professional ethics and regulations				0.657
Proficient in using financial software and information systems					0.65
Using financial tools to analyze operating costs (such as labor force, procurement, energy consumption) and possible factors affecting profits					0.78
Using past and current information to predict future costs, income, and expenses					0.822
Proficient in interpreting financial statements (such as weekly, monthly, and annual financial and statistical reports)					0.763
Formulating talent reserves, and selecting and allocating personnel reasonably based on the hotel development goals			0.736
Clarifying job responsibilities and authorizing allocation			0.679
Formulating and setting employee quality standards			0.751
Establishing an assessment system to evaluate employee performance			0.761
Providing information exchange channels for employees			0.812
Motivating employees to achieve expected performance			0.759
Communicating effectively with other employees and customers verbally	0.819
Communicating effectively with other employees and customers in writing	0.653
Interacting smoothly with different types of people	0.799
Cultural adaptability, respect, and appreciation of diversity and individual differences	0.756
Handling guest issues with an understanding and considerate attitude	0.78
Possessing good collaboration skills and being able to work as a team member	0.738
Mastering English and local dialects	0.783
Managing personal stress and controlling emotions	0.811
Maintaining a good professional image		0.766
Mastering the basic terms used in the industry		0.758
Having a working knowledge of products and services		0.674
Predicting guests’ needs and providing services		0.817
Having health, safety, and hygiene knowledge		0.778
Mastering basic operational knowledge and identifying and tracking operational problems		0.786
Proficient in using various operating systems (front office, catering, guest room, etc.)							0.774
Managing intelligent equipment							0.782
Operating the OTA platforms							0.746
Strategic thinking						0.832
Having keen market insights						0.802
Maintaining sensitivity to new concepts and technologies and having a strong innovation ability						0.771

, after varimax rotation, the factor loadings for each measurement item exceeded 0.50, indicating strong correlations between observed variables and their respective latent constructs. This implies that each measurement item contributes meaningfully to its corresponding factors, and the extracted factors can effectively explain the variation of the measurement items. Seven distinct competency dimensions were extracted, each representing a core area relevant to hotel management competency in the post-pandemic economic context. Concerning the variables of this study, factor 1 represents Leadership, items relating to clear goals, supervising skills, insight, decision-making competencies, etc. Factor 2 represents Financial Analysis, including proficiency in financial software, financial analysis, and forecasting, etc. Factor 3 represents Human Resources Management, which involves selecting and allocating personnel, establishing assessment standards, evaluating employee performance, and providing information exchange channels, etc. Factor 4 represents Interpersonal Relationships—communication, specifically, oral and written communication skills, cultural adaptability, writing skills, and foreign language proficiency, etc. Factor 5 represents Operational Knowledge, including professional image, service capability, and operational knowledge etc. Factor 6 represents the Technical Domain, which refers to proficiency in various operating systems, managing intelligent equipment, and operating OTA platforms. Lastly, factor 7 represents Administrative Management, specifically strategic thinking, market insight, and innovation ability. These dimensions constitute a structured competency framework, clarifying the structure of the factor loading matrix, improving the data’s interpretability. This table can enhance understanding of the multifaceted competency sets required for effective hotel management during economic recovery and digital transition phases.

Table 5. Factor (varimax rotation with Kaiser normalization) and descriptive analysis for the competency variables (Source: Authors own work).

Factor Items	Loading	Eigenvalues (Rotate Eigenvalues)	Percentage of Explained Variance (Rotate Percentage)	Reliability (Cronbach’s α)	Mean	Std.Dev	Rank of 36	Overall Rank
Leadership		1.925(3.972)	5.346%(11.034%)	0.897	3.73	0.945		2
Having clear goals and working in a planned and organized manner	0.721				3.42	1.206	29
Directing and supervising the work of others	0.699				3.63	1.241	21
Adapting to ever-changing circumstances	0.724				3.77	1.126	12
Making decisions under pressure and crisis	0.777				3.72	1.131	14
Keeping abreast of the industry’s current status and the latest development trends	0.743				3.88	1.131	5
Complying with professional ethics and regulations	0.657				3.95	1.143	3
Financial Analysis		1.731(2.918)	4.808%(8.105%)	0.865	3.53	1.024		5
Proficient in using financial software and information systems	0.650				3.33	1.342	32
Using financial tools to analyze operating costs (such as labor force, procurement, energy consumption) and possible factors affecting profits	0.780				3.63	1.175	21
Using past and current information to predict future costs, income, and expenses	0.822				3.69	1.157	16
Proficient in interpreting financial statements (such as weekly, monthly, and annual financial and statistical reports)	0.763				3.46	1.175	26
Human Resources Management		2.624(4.065)	7.288%(11.291%)	0.884	3.54	0.951		4
Formulating talent reserves, and selecting and allocating personnel reasonably based on the hotel development goals	0.736				3.23	1.346	36
Clarifying job responsibilities and authorizing allocation	0.679				3.33	1.134	32
Formulating and setting employee quality standards	0.751				3.53	1.196	24
Establishing an assessment system to evaluate employee performance	0.761				3.69	1.165	16
Providing information exchange channels for employees	0.812				3.81	1.174	8
Motivating employees to achieve expected performance	0.759				3.64	1.144	19
Interpersonal relationships—Communication		13.038 (5.488)	36.217% (15.245%)	0.924	3.85	0.939		1
Communicating effectively with other employees and customers verbally	0.819				3.90	1.041	4
Communicating effectively with other employees and customers in writing	0.653				3.62	1.256	23
Interacting smoothly with different types of people	0.799				4.01	1.067	2
Cultural adaptability, respect, and an appreciation of diversity and individual differences	0.756				4.15	1.094	1
Handling guest issues with an understanding and considerate attitude	0.780				3.64	1.354	19
Possessing good collaboration skills and being able to work as a team member	0.738				3.88	1.050	5
Mastering English and local dialects	0.783				3.78	1.233	11
Managing personal stress and controlling emotions	0.811				3.79	1.157	9
Operational Knowledge		3.146 (4.207)	8.738% (11.686%)	0.901	3.68	0.947		3
Maintaining a good professional image	0.766				3.71	1.142	15
Mastering the basic terms used in the industry	0.758				3.66	1.123	18
Working knowledge of products and services	0.674				3.29	1.307	34
Predicting guests’ needs and providing services	0.817				3.74	1.100	13
Having health, safety, and hygiene knowledge	0.778				3.79	1.106	9
Mastering basic operational knowledge, and identifying and tracking operational problems	0.786				3.86	1.156	7
Technical Domain		1.389 (2.338)	3.857% (6.494%)	0.846	3.43	1.064		6
Proficient in using various operating systems (front office, catering, guest room, etc.)	0.774				3.43	1.229	28
Managing intelligent equipment	0.782				3.53	1.237	24
Operating the OTA platforms	0.746				3.34	1.184	31
Administrative Management		1.292 (2.156)	3.590% (5.990%)	0.873	3.36	1.108		7
Strategic thinking	0.832				3.26	1.233	35
Keen market insight	0.802				3.44	1.270	27
Maintaining sensitivity to new concepts and technologies and having a strong innovation ability	0.771				3.39	1.218	30

presents the ranking of all listed core competencies, with interpersonal relationships—communication occupying the first rank. Leadership was recognized as the second most essential competence because of its direct influence on team cohesion and performance. Operational knowledge and human resource management followed closely behind, listed as the third and fourth most essential competencies, respectively. Further, the fifth-ranked competency is financial analysis, the sixth is technical capability, and the seventh is administrative management.

Next,

Table 6. Correlations analysis (Source: Authors own work).

	Leadership	Financial Analysis	Human Resources Management	Interpersonal Relationships—Communication	Operational Knowledge	Technical Domain	Administrative Management
Leadership	1
Financial Analysis	0.453 **	1
Human Resources Management	0.458 **	0.435 **	1
Interpersonal relationships— Communication	0.455 **	0.454 **	0.363 **	1
Operational Knowledge	0.535 **	0.465 **	0.352 **	0.369 **	1
Technical Domain	0.509 **	0.460 **	0.440 **	0.444 **	0.379 **	1
Administrative Management	0.505 **	0.442 **	0.344 **	0.383 **	0.419 **	0.408 **	1

** Correlation is significant at the 0.01 level (2-tailed).

displays the correlation coefficients of several competencies, indicating the strength of their linear relationships. The absolute value of the correlation coefficient (r value) approaches 1, indicating a greater association. All correlation coefficients in the table are positive, signifying a typically positive link among various competencies. From a theoretical standpoint in management, an intrinsic logical relationship exists among diverse management competencies. The correlation coefficients between leadership and other dimensions indicate a moderate-to-strong positive correlation. The explanations are as follows. Leadership, as an essential competency, permeates all facets of management. Leaders’ decisions and behaviors not only depend on financial analysis for rational resource allocation but also necessitate human resource management to motivate and train employees, facilitate teamwork through effective interpersonal communication, leverage operational knowledge to optimize processes, apply technical expertise to foster innovation, and utilize administrative management to ensure the orderly execution of daily operations. The interplay among these talents demonstrates the permeability and integration of leadership.

4.1. Differences as to Demographic and Other Characteristics

Independent sample t-tests and one-way analysis of variance were employed to ascertain whether hotel managers’ perceptions of the significance of essential industry competencies during economic recovery vary by age, gender, educational background, managerial level, and functional/business area. The comparative results are summarized as follows.

4.2. Differences According to Gender for Hotel Managers

The results of the t-tests presented in

Table 7. Differences according to gender for hotel managers (Source: Authors’ own work).

	Male	Female	t-Value	p-Value
Leadership	3.834 (0.907)	3.635 (0.970)	2.124	0.034 *
Financial Analysis	3.525 (1.059)	3.529 (0.996)	0.038	0.969
Human Resources Management	3.524 (0.954)	3.553 (0.951)	0.309	0.758
Interpersonal relationships—Communication	3.869 (0.921)	3.831 (0.956)	0.402	0.688
Operational Knowledge	3.707 (0.959)	3.647 (0.939)	0.633	0.527
Technical Domain	3.441 (1.132)	3.428 (1.002)	0.121	0.904
Administrative Management	3.461 (1.111)	3.281 (1.102)	1.628	0.104

* Means the result is significant at the p < 0.05 level. There is less than a 5% chance that the results are due to chance.

demonstrate the gender differences by comparing respondents’ mean scores, standard deviations, t-test statistics, and p-values across different genders in seven competency domains. In the leadership domain, the mean score for males is 3.834 (standard deviation 0.907), while for females it is 3.635 (standard deviation 0.970), indicating significant disparities in leadership competency between genders, with males scoring markedly higher than females. This may pertain to the following factors. Traditionally, males are frequently assigned higher leadership roles and possess more leadership experience. The proportion of male managers in the hotel industry is notably high, particularly in senior management roles, providing them with greater leadership development and practice opportunities. In the remaining domains, the p-values for the score differences between genders exceed 0.05, signifying that the differences are not statistically significant.

4.3. Differences According to Age for Hotel Managers

The analysis of variance findings reported in

Table 8. Differences according to age for hotel managers (Source: Authors’ own work).

	18–30 Years Old	31–40 Years Old	41–50 Years Old	Over 50 Years Old	F-Value	p
Leadership	3.518 (0.915)	3.91 (0.895)	3.695 (0.963)	3.252 (0.962)	6.403	0.000 ***
Financial Analysis	3.299 (1.092)	3.654 (1.032)	3.583 (0.949)	3.029 (0.981)	4.878	0.002 **
Human Resources Management	3.276 (1.114)	3.618 (0.947)	3.558 (0.875)	3.49 (0.933)	1.901	0.129
Interpersonal relationships—Communication	3.728 (0.876)	4.019 (0.85)	3.793 (0.983)	3.377 (1.111)	5.572	0.001 ***
Operational Knowledge	3.387 (0.98)	3.892 (0.875)	3.642 (0.95)	3.151 (0.936)	8.996	0.000 ***
Technical Domain	3.107 (1.114)	3.598 (1.095)	3.384 (0.989)	3.303 (0.975)	3.536	0.015 *
Administrative Management	3.215 (1.08)	3.561 (1.097)	3.326 (1.106)	2.743 (0.967)	6.191	0.000 ***

* Means the result is significant at the p < 0.05 level. There is less than a 5% chance that the results are due to chance. ** Indicate significance at the p < 0.01 level, meaning less than a 1% probability of occurring by chance. *** Indicate significance at the p < 0.001 level, suggesting the results have less than a 0.1% likelihood of being random.

indicate substantial disparities among various age groups in every domain except for human resource management, with all p-values being less than 0.05. The likely explanation is that the hotel industry is significantly reliant on human resources, with employees of various age demographics actively participating in processes such as recruitment and training. The disparity in abilities resulting from variations in age and experience has been diminished. The 31–40 age group achieved the most outstanding scores in five of these domains (excluding the technical domain), which is conjectured to be associated with the career development traits of this demographic. The group over 50 exhibited lower scores in most domains, which is likely related to their growing age and diminished capacity for acquiring new information and skills. Nonetheless, no substantial difference was observed among age groups in human resource management (p-value beyond 0.05). The likely explanation is that the hotel industry is significantly reliant on human resources, with employees of various age demographics actively participating in processes such as recruitment and training. The disparity in abilities resulting from variations in age and experience has been diminished. Factors such as job experience, educational opportunity, professional progression, and adaptability to innovation may account for the performance disparities among different age groups across various domains.

4.4. Differences According to Educational Background for Hotel Managers

Table 9. Differences according to educational background for hotel managers (Source: Authors’ own work).

	College/University—2-Year Diploma (Vocational College, Associated Degree, etc.)	College/University—4-Year Diploma	Graduate Degree—Master’s Degree (and Above)	F-Value	p
Leadership	3.402 (1.034)	3.734 (0.913)	4.015 (0.852)	9.316	0.000 ***
Financial Analysis	3.229 (1)	3.578 (0.994)	3.671 (1.082)	4.715	0.009 **
Human Resources Management	3.294 (0.947)	3.583 (0.946)	3.654 (0.94)	3.643	0.027 *
Interpersonal relationships—Communication	3.464 (1.043)	3.881 (0.894)	4.12 (0.843)	11.229	0.000 ***
Operational Knowledge	3.346 (0.921)	3.732 (0.942)	3.833 (0.925)	6.788	0.001 ***
Technical Domain	3.235 (0.916)	3.409 (1.1)	3.686 (1.058)	4.021	0.019 *
Administrative Management	2.919 (1.003)	3.413 (1.094)	3.652 (1.128)	10.28	0.000 ***

* Means the result is significant at the p < 0.05 level. There is less than a 5% chance that the results are due to chance. ** Indicate significance at the p < 0.01 level, meaning less than a 1% probability of occurring by chance. *** Indicate significance at the p < 0.001 level, suggesting the results have less than a 0.1% likelihood of being random.

indicates that the disparities in these domains among varying educational backgrounds are statistically significant. The F-value in interpersonal relationships and communication is the highest at 11.229, with a p-value of 0.000. The F-values for leadership and administration are followed by 9.316 and 10.28, respectively. This demonstrates that well-educated managers typically have systematic training in these competencies throughout their education, enabling them to effectively coordinate interdepartmental efforts, foster teamwork, and attain the hotel’s commercial objectives.

4.5. Differences According to Managerial Level for Hotel Managers

Table 10. Differences according to managerial level for hotel managers (Source: Authors’ own work).

	Entry Level—Supervisor	Middle Level—Department Leader	Upper Level—Top Administration	F-Value	p
Leadership	3.637 (0.936)	3.821 (0.964)	4.174 (0.769)	4.322	0.014 *
Financial Analysis	3.447 (1.07)	3.605 (0.93)	3.943 (0.963)	2.984	0.052
Human Resources Management	3.401 (0.95)	3.733 (0.899)	3.894 (1.02)	7.148	0.001 ***
Interpersonal Relationships—Communication	3.742 (0.971)	3.973 (0.904)	4.275 (0.496)	5.156	0.006 **
Operational Knowledge	3.564 (0.969)	3.806 (0.876)	4.114 (0.935)	5.481	0.004 **
Technical Domain	3.263 (1.087)	3.654 (0.978)	3.984 (0.894)	9.417	0.000 ***
Administrative Management	3.217 (1.105)	3.493 (1.078)	4.227 (0.851)	10.202	0.000 ***

* Means the result is significant at the p < 0.05 level. There is less than a 5% chance the results are due to chance. ** Indicate significance at the p < 0.01 level, meaning less than a 1% probability of occurring by chance. *** Indicate significance at the p < 0.001 level, suggesting the results have less than a 0.1% likelihood of being random.

indicates that the disparities in these domains among varying educational backgrounds are statistically significant. The F-value in interpersonal relationships and communication is the highest at 11.229, with a p-value of 0.000. The F-values for leadership and administration are 9.316 and 10.28, respectively. This demonstrates that well-educated managers typically receive systematic training in these competencies throughout their education, enabling them to effectively coordinate interdepartmental efforts, foster teamwork, and achieve the hotel’s commercial objectives. As educational achievement rises, scores across many competency domains tend to improve. It is reasonable to deduce that when education levels increase, employees increasingly exhibit benefits in knowledge reserves, learning capacity, communication skills, innovative competencies, and career advancement. These benefits allow them to excel in capability development across many hotel industry sectors, react more effectively to industry demands, and enhance overall operational standards and service quality.

5. Discussion

This paper revealed the core competencies required by hotel managers in an era characterized by economic fluctuation and digital transformation. Specifically, the study identified seven essential competency dimensions and prioritized these seven dimensions by significance in the present economic background. The ranked core competencies framework is presented as follows:

• Interpersonal Relationships—Communication
• Leadership
• Operational Knowledge
• Human Resources Management
• Financial Analysis
• Technical Domain
• Administrative Management

Interpersonal relationships and communication were identified as the most critical competencies, followed by leadership. Subsequent rankings include operational expertise, human resource management, financial analysis, technological proficiency, and administrative management; this distinctive competency hierarchy offers critical insights into Shanghai hotel management’s actual requirements during economic recovery, providing actionable guidance for talent development.

Particularly, interpersonal relationships and communication emerged as the primary competency for Shanghai hotel managers, consistent with Siu’s (1998) findings. Brophy and Kiely (2002) similarly emphasize effective communication’s importance. While our results extend to demonstrating managers require communication skills, cultural adaptability, and respect for diverse backgrounds to enhance employee loyalty, customer satisfaction, and brand reputation when managing international guests and multicultural staff amid rising tourist flows.

Leadership occupies the second critical position, corroborating prior research across multiple periods (Brownell & Chung, 2001; Marneros et al., 2020; Papageorgiou et al., 2024). However, our study further focuses on the specific economic period concerned and indicates that effective leadership enables proficient goal setting, organizational coordination, and rapid decision-making during economic recovery, particularly given the accelerating environmental changes and passenger volume increases, thereby boosting morale and ensuring sustainable operations.

Operational knowledge, ranked third among core competencies, proves crucial for effective daily hotel operations, aligning with existing research that recognizes operational competence as fundamental despite minor priority variations. Liu and Tian (2011) deemed it paramount for tourism managers, whereas Ko (2024) highlighted its necessity for standards enhancement. Our research further points to the importance of bottom-up communication channels. Our respondents emphasized that establishing communication channels, ensuring employees feel heard, valued, and operationally engaged, constitutes an essential managerial competency.

Next, this study identifies human resource management as the fourth core competency, highlighting its critical role in practice. This resonates with the findings of Wilks and Hemsworth (2011), who emphasize that intense industry competition necessitates strong human resource management competency to overcome pressures, secure advantage, and ensure stable operation and growth. Our findings corroborate Dzwigol et al. (2020) in relation to its organizational necessity, and Vaitiekunaite (2022) links strategic human resource planning to enhanced competitiveness, which is fundamental for profitable operations. Addressing Shanghai’s recovery challenges, effective human resource management could promote long-term sustainable development.

Financial analysis ranks fifth. Çizel et al. (2007) exposed knowledge gaps in financial management among hotel managers. Bharwani and Talib (2017) observed the industry’s shift toward business competencies, which shows that this competency was widely needed in each stage of development. Our research, aligning with Agut and Grau (2002), indicated that financial analysis competency is crucial, but requires the support of technology competency. This opinion aligns closely with the competency ranked sixth in our study. In short, financial competency is the lifeblood of business management, and financial acumen can inform strategic choices. Technological transformation now ubiquitously integrates into global hospitality operations and is indeed becoming operationally indispensable. It is ranked sixth in this study. Jalilvand et al. (2019) documented its transformative potential in promoting hotel competitiveness within the dynamic industry. Zou’s (2021) empirical evidence later confirms service management facilitation, particularly strategic decision augmentation, where technological mediation proves critical. Administrative management ranks seventh. Liu and Tian (2011) demonstrate its efficiency in promoting ability and effective resource allocation. Marneros et al. (2020) underlined its importance for maintaining a competitive advantage and developing long-term development plans. Enhancing administrative management can foster a positive transformation of internal connections, while simultaneously addressing consumer needs and augmenting hotel competitiveness.

Despite financial analysis, technological competency, and administrative management being ranked lower, this reflects a post-pandemic focus on immediate revenue generation and cost containment, where financial analysis and tech serve supplementary roles, while strategic planning requires comprehensive market analysis, which is a relatively lengthy process. Managers need sustained market insight to seize emerging opportunities, thereby driving business diversification and innovation.

The competency framework demonstrates congruence with prior scholarship, while validating the non-negotiable role of comprehensive competencies in achieving operational efficacy. Shanghai’s unique recovery context critically reshapes competency prioritization, which is particularly visible where post-pandemic market fractures demand adaptive recalibration. Concurrently, we investigated the influence of demographic characteristics on the priority of the core competencies, including gender, generational priorities, and educational attainment gradients.

Significant disparities emerged in leadership perception; male managers rated it higher than female counterparts, echoing Eagly and Karau’s (2002) male-associated bias, in which leadership has been associated with masculine traits. Middle-aged managers (31–40) prioritized leadership and financial competencies consistent with D. M. Li et al. (2004), which are the typical characteristics. The working environment requires them to have comprehensive competences in core management responsibilities. Higher education levels correlate with greater competency requirements, as Gao (2020) links knowledge absorption to operational standards, enabling excellence across the hotel industry.

To sum up, analyzing demographic–competency correlations ultimately enables more precision recruitment, potentially catalyzing innovative competencies and accelerating the rehabilitation of Shanghai’s hotel industry. Core competencies retain undiminished significance, though their relevance varies depending on the economic and geographic context. This study enriches the existing theoretical foundation by constructing a conceptual framework through a comprehensive examination of the competencies required during the economic recovery phase. Meanwhile, it provides a refined understanding of how to navigate the obstacles and opportunities arising during economic recovery phases and suggests the direction the hotel industry should take to move forward in a dynamic environment.

6. Conclusions

This paper proposes a strategic framework of core competencies for effective hotel management. The study identifies key competencies, discusses their hierarchical significance, and examines how various demographic characteristics influence hotel managers’ perceptions and prioritization of these competencies. It enhances the theoretical basis of competency research, demonstrating that individual characteristics significantly affect the assessment and ranking of competencies.

The primary beneficiaries of this research are the hotel industry in China and professionals across various managerial levels and departments, particularly human resource management and administrative management departments. Further, educational institutions offering hospitality and tourism programs may derive significant value from the research outcomes. The identification of core competencies from this study provides empirical evidence for curriculum development, enabling educational institutions to effectively integrate practical industry skills into their hospitality management programs. Such evidence-based curriculum enhancement facilitates more targeted professional training for future practitioners. Moreover, this research strengthens the alignment between academic preparation and industry demands, offering substantive contributions toward bridging the persistent gap between theoretical frameworks and operational requirements in the industry.

The findings offer practical guidance for Shanghai hotel recruitment, training, and development. Identifying core recovery-phase competencies enables targeted hiring of managers with operational knowledge, leadership, and human resource management competencies. Training programs can be customized to enhance specific competencies, allowing the industry to conquer the obstacles posed by economic recovery effectively, and improve team adaptability and industry performance. Ultimately, this will strengthen the industry’s performance and sustainable development. Furthermore, recognizing the influence of demographic characteristics can assist hotel managers in utilizing diverse perspectives to develop more inclusive and effective management strategies. Such strategies can be applied in the hotel industry of other cities in China and worldwide.

Although this study provides some significant valid findings, it also has several limitations. It concentrated on hotel managers in Shanghai, and, employing a cross-sectional design, exclusively explored the correlation between fundamental demographic variables and competency perception, which may have introduced potential sampling bias. Future research could be extended to other cities and regions, examine additional factors (e.g., cultural background, hotel affiliation), employ longitudinal designs to track perception evolution, and use qualitative methods (interviews, case studies) to contextualize quantitative findings. Despite the limitations, the study provides some valuable strategic and practical insights for the hospitality industry and effective hotel management.