The operations management literature has reached a stage of maturity in addressing operations area decisions. However, few studies have analysed these decisions in service companies, especially in the hotel sector. The aim of this study is to analyse the operations strategy, taking into consideration the main structural and infrastructural decisions in the operations area and their relationships with organizational performance. To this end, it examines a set of policies and practices in a representative sample of hotels in the Canary Islands, one of Europe’s leading tourist destinations. Furthermore, the study analyses which operations area decisions influence the competitive advantage the most and how they do so. Results reveal a greater influence on non-financial performance than on financial performance, and that decisions related to technology, facilities, organization, operations planning and the development of new services can lead to better overall performance. This study will enable managers to identify which operations should be emphasized in order to increase organizational performance.
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