The effects of labor leverage on firm performance

The purpose of this study is to explore the effect of labor leverage on firm performance among tourism and hospitality firms. Based on dynamic capabilities theory, we analyze the impact of labor leverage on firm performance across three major tourism and hospitality industries: lodging, airline, and restaurant. In particular, we aim to examine the impact of labor leverage on performance for firms with different business models: 1) asset-light and asset-heavy business models, and 2) full-service and limited-service business models. The findings of this study will provide valuable insights into the effectiveness of labor leverage and how tourism and hospitality firms can balance labor costs and profit management.