Hotel Performance Evaluation

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RESEARCH NOTES AND REPORTS This Department publishes research notes, conference reports, reports on the work of public agencies and associations, field (industry) reports, and other relevant topics and timely issues. Contributions to this department are submitted to its two Associate Editors: Research Notes to Juergen Gnoth (Department of Marketing, University of Otago, Dunedin, New Zealand. Email ) and Conference Reports to Russell Smith (Hospitality and Tourism, Nanyang Technological University, Singapore 639798, Rep. of Singapore. Email ). Unsolicited conference and agency reports will not be accepted. RESEARCH NOTES Annals of Tourism Research, Vol. 31, No. 3, pp. 712–715, 2004 # 2004 Elsevier…show more content…
This study is the first to adopt it for research. To find the DEA results, a specialized computer package—DEAP 2.1 was used to handle the data. The BCC model (named afer those who proposed it; Bank, Charnes and Cooper) is employed to evaluate the overall efficiency, the pure technical efficiency, and the scale efficiency (Overall efficiency = Technical efficiency à Scale efficiency; Banker, Charnes and Cooper 1984). Table 1 groups the DEA results by hotel operational styles. Of the 25 properties, 14 have an overall efficiency score of 1.0, which is relatively efficient. Of the franchised hotels (Table 1.A), two are DEA efficient, while one is relatively inefficient. The overall efficiency score of Hotel 16 is 0.878, which means it has only attained about 88% efficiency. This is a result of the lower pure technical efficiency score. Of the five internationally managed hotels (Table 1.B), numbers 12 and 15 are inefficient, with an overall efficiency score of 0.978 and 0.73, respectively. The overall inefficiency is mostly due to technical inefficiency. Among the 17 independent hotels (Table 1.C), 1, 9, 10, 13, 19, and 23 are members of several domestic chains holding multiple properties, with resources shared among properties. However, hotels 1 and 9 are not efficient overall, due to technical inefficiency. It is also worth mentioning that number 10 signed a management contract with an international hotel operator for the first couple
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