Black Swan Theory of Events and the Impact to Hospitality Operators: Literature Review and Proposed Analysis

The Black Swan theory of events is an incident that deviates beyond what normally expected a situation and extremely difficult to predict (Talib, 2007). impact the hospitality industry in many ways. Weather, widespread illness, civil unrest, terrorism, loss utilities are out immediate control industry’s participants but their results. Occurrences at property/corporate level can also performance ways such as: food contaminants impacting restaurants, cruise ships losing power, running ground, or sinking, experiencing Nora virus, hotels face fires, strikes, data breaches, boycotts, as well amusement parks having ride fatalities animal welfare protests, etc. All these quickly spread by multiple news sources, consumers able search using Google other engines get more details.Previous studies have looked aftereffects exogenous—or self-inflicted— events, how management teams reacted did not react operating results (Kosova & Enz, 2012). However, there paucity academic analysis determine whether way reduce impact.