Stock market effects of CrowdStrike IT outage on largest listed hotel companies

Albuquerque, Bruno; Cró, Susana; Moutinho, Nuno; Martins, António Miguel

http://hdl.handle.net/10198/34634

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Authors

Albuquerque, Bruno

Cró, Susana

Moutinho, Nuno

Martins, António Miguel

Abstract(s)

This study analyses the short-term market effect of CrowdStrike IT outage in the 100 largest worldwide listed hotel companies. Using an event study methodology, the paper analyses how hotel companies are penalized by the market to the biggest IT disruption in history. Our results evidence a statistically significant negative reaction around the event date. This result is explained by the adverse impact caused by IT failures in the hotel’s business operations (reservation, payment, technical systems) and supply chain processes, which result in financial losses. We also observe a highest negative stock market reaction for hotel companies located in Western countries and for hotels with a low cyber risk rating. Finally, this study identifies hotel-specific characteristics that drive value during an IT outage. The research evidence that larger and more profitable hotel companies, with lower leverage and higher cyber risk ratings are more resilient to the adverse effects of IT outages.

Keywords

Abnormal returns Crowdstrike IT outage Hotels Event study

URI

http://hdl.handle.net/10198/34634

Citation

Bruno Albuquerque; Susana Cró; Nuno Moutinho; António Miguel Martins (2025). Stock market effects of CrowdStrike IT outage on largest listed hotel companies. Tourism Economics. ISSN 1354-8166. P. 1-13