Family firms are major players in the tourism sector. In particular, hotels are of crucial importance, as they are the main form of business in the accommodation and gastronomy industry. According to the competitive nature of the tourism and hotel industry, strategy is an inevitable factor to perform well. This factor and the crucial importance of tourism family firms make it an important research subject. Environmental complexity and dynamism influence firms participation and planning procedures. To the best of my knowledge, no research has addressed the planning procedures and participation in tourism family firms so far. Addition- ally, no research has discussed possible internal factors that influence the planning procedures and participation of family-owned hotels. In the current study, 28 semi-standardized inter- views were conducted in Austria to understand planning procedures and participation in the strategy-making process by family-owned hotels, explore how these businesses assess environmental complexity and dynamism, and identify further internal factors influencing the pro- cess. The results revealed that all family-owned hotels in the study used emergent planning procedures, but differences existed in participation. The environment is perceived as dynamic but not complex. Several internal factors that support a collective or individual strategy- making process were encountered. Suggestions for future research are provided, as well as practical implications for the improvement of planning procedures and participation in the strategy-making process.