Purpose Competitiveness has been the objective of investigation in tourism in general, and particularly in hospitality, by many researchers in the past decades. The purpose of this study is to identify which main factors are considered crucial for the increase of competitiveness in hospitality, by applying the Porter’s diamond model to this sector. Design/methodology/approach The methodology used in the study required the use of primary data from which the authors obtained 285 responses from companies related to hospitality in Portugal. In the processing of data, the authors used a structural equation model. Findings The results showed that “government policies”, “factor conditions”, “related and supporting industries” and “cooperation and innovation” were determinant factors of the competitiveness of the sector. Originality/value Despite the importance of competitiveness in hospitality, the number of studies focused on the empirical validation models of competitiveness, applied to the hospitality industry, is still incipient. This study contributes to fill this gap.