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

Bibliographic Data

ID21689362
AuthorsBruno Albuquerque (0000-0003-4495-2444, Universidade da Madeira), Susana Cró (0000-0003-0436-9385, CEFAGE-UE and University of Évora), Nuno Moutinho (0000-0002-9242-8324, Polytechnic Institute of Bragança), António Miguel Martins (0000-0001-7082-5460, Universidade da Madeira, corresponding author)
Year2025
Volume31
Issue7
Pages1452-1464
Publication date2025-11-01
Open AccessYes
TypeARTICLE
VenueTourism Economics (JOURNAL)
Journal identifiersISSN: 1354-8166 • E-ISSN: 2044-0375
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/13548166251321212
OpenAlexW4407582636
LanguageEN
Citations received1
References cited26

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

Business · Economics · Financial economics · Geography · Hotel industry · Stock exchange · Stock market · Tourism · Digital Marketing and Social Media · FinTech, Crowdfunding, Digital Finance · Sharing Economy and Platforms · Finance

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Open DOIOpen Access