Abstract

The hospitality industry in Laos is experiencing remarkable growth, presenting an array of opportunities for businesses to flourish and cater to an increasing number of visitors. However, despite this positive trend, many enterprises are still struggling to effectively implement and leverage digital marketing strategies, which are essential for enhancing their visibility and competitiveness in today’s rapidly evolving digital landscape. This research thoroughly investigates the significant impact of digital marketing on the financial performance of a sample comprising 218 hospitality enterprises in Laos. Employing Smart PLS4 Structural Equation Modeling (SEM), the study analyzes relationships between independent variables—online advertising, social media marketing, content marketing, and mobile marketing—and their effect on the dependent variable, financial performance. Results reveal that online advertising, social media marketing, and content marketing significantly enhance financial performance; however, mobile marketing does not exhibit a notable influence. The findings suggest that low-cost online platforms like Facebook and YouTube are vital revenue sources for these enterprises. To improve financial outcomes, it is recommended that hospitality enterprises prioritize digital marketing strategies and online advertising efforts. Furthermore, it is recommended that government initiatives focus on bolstering digital marketing efforts by enhancing digital security measures, establishing monitoring systems for policy improvement, providing education to remote enterprises, and developing a comprehensive nationwide high-speed internet infrastructure.

This work is licensed under a Creative Commons Attribution 4.0 License.