Performance evaluation of Taiwanese international tourist hotels: evidence from a modified NDEA model with ICA technique

The motivation for this study is to assess the managerial performance in Taiwanese international tourist hotels based on the two-stage NDEA performance mechanism with ICA technique for enhancing the discriminatory power of performance evaluation model. The two-stage managerial performance structure is applied, incorporating the service production and service operation stages, as a reduced form to introduce the relatively complex business environment of modern enterprise. However, we have need to be considerable of dimensionality curse problem in NDEA performance model. A modified NDEA-based evaluation model, therefore, is proposed to integrate the network slacks-based measure (NSBM) with a dimensional reduction technique, the independent component analysis (ICA). The results indicate that the performance of the profit dimension significantly hampers operational performance, and that both regulators and managers must adjust their market orientation business strategy. Moreover, compared with the NSBM model, this modified ICA-NSBM performance model has a high discriminatory ability to measure the relative performance of the selected hotels

Efficiency in the hotel industry: an empirical examination of the most influential factors

The purpose of this article is to provide insights into hotel efficiency and investigate which hotels are performing better. Hotel efficiency is examined using data envelopment analysis (DEA) and the outputoriented BCC model is applied on the hotels’ internal accounting information. The study further explores whether there are differences in efficiency between hotels of different size and quality. The results show that average efficiency is high, but not all hotels are performing at their maximum efficiency. A significant relationship between size and hotel efficiency has been found. This study provides a potential framework for efficiency measurement and contributes to the growing body of knowledge in the area of hotel efficiency in the context of a country that is predominantly concentrated on seasonal seaside tourism. The results of this research offer useful insights for hotel managers, suggest ways of enhancing hotel productivity and provide guidance on which aspects to focus their attention in the decision-making process

Efficiency evaluation of hotel operations in mainland China based on the Super-efficiency SBM mode

This research evaluated the efficiency of hotels in 31 provinces and 4 regions (Eastern, Western, Central, and Northeastern China) using the superefficiency slacks-based measure model. The reasons for operational inefficiency were assessed from two perspectives: input redundancy and output shortfalls. Most hotels were found to have operational inefficiencies, and there is a significant scope for future improvement. The relative efficiency of hotel operations by the four regions was as follows: Eastern China > Central China > Western China > Northeastern China. The efficiency of hotels demonstrated differing coefficients of variation. The most significant coefficient of variation was for Western China, and the smallest was for Northeastern China. The primary cause of inefficiencies was in input redundancies, especially the high degree of input redundancy in number of hotels, employees, and rooms. Also, to some degree, differences exist among the four regions in operational inefficiencies

Essays on efficiency and international tourism

RESUMEN: Esta tesis doctoral consta de tres ensayos sobre la economía del turismo. En el primer y tercer ensayo se realiza un análisis de eficiencia turística de las regiones españolas y de los factores que pueden estar determinando su evolución. En el segundo ensayo se hace una profunda revisión bibliográfica sobre la literatura que analiza la eficiencia turística a nivel mundial. El período de análisis abarca desde la última mitad del siglo XX (entre 1978 en el caso del estudio de la bibliografía turística, año en el que Charnes, Cooper y Rhodes introducen el Análisis Envolvente de Datos) hasta el periodo más reciente de nuestra economía (2018 en el tercer ensayo). En los dos ensayos que analizan la eficiencia turística en España el periodo comprende desde inicios del siglo XXI (2008 en el caso de la eficiencia de los destinos turísticos españoles) hasta los datos más actuales disponibles en este momento.ABSTRACT: This doctoral thesis consists of three essays on the economics of tourism. In the first and third essay an analysis of tourist efficiency of the Spanish regions and of the factors that may be determining their evolution is carried out. In the second essay, an in-depth bibliographical review is done on the literature that analyzes tourism efficiency worldwide. The analysis period covers from the last half of the twentieth century (between 1978 in the case of the study of the tourist bibliography, year in which Charnes, Cooper and Rhodes introduce the Data Envelope Analysis) until the most recent period of our economy ( 2018 in the third essay). In the two essays that analyze tourism efficiency in Spain, the period ranges from the beginning of the 21st century (2008 in the case of the efficiency of Spanish tourist destinations) to the most current data available at this time

The change of the Spanish tourist model: From the Sun and Sand to the Security and Sand

There is evidence of specialisation in tourism destinations, but also a lack of literature regarding itsimpact on tourism regional performance. This study aims to contribute to the analysis of thedeterminants of tourism performance. To this end, the efficiency of 17 Spanish regions has beenestimated by meta-frontier data envelopment analysis techniques over the 2008-2018 period. In thesecond stage, we adopt the bootstrapping method proposed by Simar and Wilson to measure theimpact of explanatory factors on tourism efficiency. The results suggest that regions specialised intourism may achieve higher efficiency levels. However, there is evidence of a catching-up process inthe tourism technology of the Spanish regions over the last 10 years. Results also suggest thatsand(kilometres of beaches) andinsecurityare the key drivers of tourism efficiency. Moreover,naturalattractionsis the factor that most positively influences efficiency in non-specialised region

The influence of the internet on catering and accommodation industry efficiency

Accommodation and catering industry efficiencies have been widely evaluated from destination, market concentration, and catering supply chain management perspectives; however, few studies have dynamically evaluated the overall accommodation and catering industry efficiencies under the influence of the internet. Therefore, to go some way to filling this research gap, this study used catering and accommodation industry data and related internet data from 31 Chinese provinces from 2012 to 2016 and employed a Dynamic DDF DEA model to evaluate the catering and accommodation industry efficiencies and the influence of the rising internet connections. It found that: 1. the overall catering and accommodation revenue efficiencies were higher when the internet connection inputs were considered; and 2. there were significant catering and accommodation income distribution differences between the eastern, central and western regions, with higher efficiencies being found in the more developed east

Embedding eWOM into efficiency DEA modelling: an application to the hospitality sector

This paper develops and tests an innovative DEA model in the hospitality sector, by originally embedding online customer ratings among the outputs of the model. Based on a sample of 268 independent hotels located in Rome (Italy), we test a eWOM-informed DEA model and find that the introduction of online ratings among the outputs of the model significantly affects the assessment of hotels’ efficiency regardless of hotel category. The efficiency rankings generated by the DEA models embedding eWOM are radically different compared to those resulting from DEA models exclusively based on financial variables. The number of hotels improving their position in the efficiency rankings is lower than the number of hotels decreasing in the ranking. However, the average efficiency variation is positive and higher for 2- and 3- stars hotels than for 4- and 5- stars hotels. Implications for researchers in hospitality and tourism, managers and practitioners are discussed

Data envelopment analysis in service quality evaluation: an empirical study

Service quality is often conceptualized as the comparison between service expectations and the actual performance perceptions. It enhances customer satisfaction, decreases customer defection, and promotes customer loyalty. Substantial literature has examined the concept of service quality, its dimensions, and measurement methods. We introduce the perceived service quality index (PSQI) as a single measure for evaluating the multiple-item service quality construct based on the SERVQUAL model. A slack-based measure (SBM) of efficiency with constant inputs is used to calculate the PSQI. In addition, a non-linear programming model based on the SBM is proposed to delineate an improvement guideline and improve service quality. An empirical study is conducted to assess the applicability of the method proposed in this study. A large number of studies have used DEA as a benchmarking tool to measure service quality. These models do not propose a coherent performance evaluation construct and consequently fail to deliver improvement guidelines for improving service quality. The DEA models proposed in this study are designed to evaluate and improve service quality within a comprehensive framework and without any dependency on external data

El impacto del COVID-19 en la eficiencia hotelera en España: el caso de Barcelona

Purpose: The purpose of the study is to attempt to fill the gap in extant literature by evaluating a hotel’s performance in terms of efficiency before and during COVID-19 and provide a performance measurement knowledge of both stable and turbulent environments. Design/methodology/approach: The sample consists of 20 Hotels: 3-star and 4-star operating in Barcelona, Spain. This study uses data envelopment analysis (DEA) to analyse the efficiency of those Hotels between 2012 and 2021. The analysis includes five input variables: (X1) Current Assets; (X2) Non-Current (Fixed) Assets; (X3) Shareholders’ equity; (X4) Cost of employees; (X5) Material Costs and one output variable: (Y) Operating revenue. Findings: The results of DEA efficiency analysis showed that hotels belonging to 3-star hotels are more inefficient than to 4-Star hotels starting from 2013. While observing each inefficient hotel’s performance during the 10-year period and comparing the level of inefficiency of inefficient hotels before and during the COVID-19, it became clear that the pandemic had a negative impact on all of them. We can also notice that during COVID-19 we have more 3-star hotels being inefficient and having a high level of inefficiency than 4 stars hotels. The lambda analysis showed that during 10-year period more 3-star hotels were identified as principal models to follow than 4-star hotels. Finally, the slack analysis revealed that inefficient 3-star hotels have to make adjustments in more resources such as Current Assets, Non-Current (Fixed) Assets and Shareholder’s Equity than 4-star hotels where they have to reduce resources such as Cost of Employees and Material Costs. All the hotels included in the sample have to increase their Operating revenue. Research limitations/future research: This study have two main limitations: available data limitations in terms of variables and available years and limitations applicable to the method used. Regarding to future research, one direction would be to evaluate a hotel’s performance in terms of efficiency and effectiveness since this study examines the performance of hotels from the efficiency’s point of view. Another direction could be to expand the number of input and output variables and be extended for larger sample of hotels located not only in Spain but also in other popular tourism destinations for the same purposes. Finally, to analyse hotel performance after COVID-19 will help to understand the resiliency and recovery speed of hotels after pandemia. Practical implications: The results obtained through DEA provide implications and potential strategies to hotel owners and managers that could be adopted in order to improve the efficiency of their business and operations. The results of the study can also provide some important insights and guide future investors such as that inefficiency is more prevalent among 3 star hotels than 4 star hotels and that during unexpected situations such as COVID-19 the level of inefficiency is higher in 3-star hotels than in 4-star hotels. Originality/value: This is the first study analysing hotel efficiency before and during COVID-19, demonstrating how hotels’ performance changes over time, especially during unexpected or unpredictable situations and whether COVID-19 affected the efficiency of hotel enterprises. Moreover, it identifies the sources of inefficiency of hotels and gives recommendations, at the level of strategic and operational management, so as to increase hotel efficiency. The recommendations can be helpful and applicable for other Hotels with similar characteristics in different tourism destinations

New Developments in Tourism and Hotel Demand Modeling and Forecasting

Abstract Purpose The purpose of the study is to review recent studies published from 2007-2015 on tourism and hotel demand modeling and forecasting with a view to identifying the emerging topics and methods studied and to pointing future research directions in the field. Design/Methodology/approach Articles on tourism and hotel demand modeling and forecasting published in both science citation index (SCI) and social science citation index (SSCI) journals were identified and analyzed. Findings This review found that the studies focused on hotel demand are relatively less than those on tourism demand. It is also observed that more and more studies have moved away from the aggregate tourism demand analysis, while disaggregate markets and niche products have attracted increasing attention. Some studies have gone beyond neoclassical economic theory to seek additional explanations of the dynamics of tourism and hotel demand, such as environmental factors, tourist online behavior and consumer confidence indicators, among others. More sophisticated techniques such as nonlinear smooth transition regression, mixed-frequency modeling technique and nonparametric singular spectrum analysis have also been introduced to this research area. Research limitations/implications The main limitation of this review is that the articles included in this study only cover the English literature. Future review of this kind should also include articles published in other languages. The review provides a useful guide for researchers who are interested in future research on tourism and hotel demand modeling and forecasting. Practical implications This review provides important suggestions and recommendations for improving the efficiency of tourism and hospitality management practices. Originality/value The value of this review is that it identifies the current trends in tourism and hotel demand modeling and forecasting research and points out future research directions