Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel Industry in Ecuador

Abstract

The level of contribution of the hotel industry depends on different factors of production that they use in the provision of their services The way they use these factors of production will allow them to act efficiently, in order to improve profitability and market position. Ecuador, in recent years, has directed public policies betting on the development of this industry. In this sense, this research seeks to measure the efficiency and productivity of the Ecuadorian hotel industry. For this purpose, a significant sample has been selected; it consists of 147 businesses that provided hotel services during the period 2013-2017. These businesses are classified according to their quality and geographic location. This information has been useful to make a balanced panel data with one output (Revenue) and three inputs (Total_personnel, the non-current assets, and Consumption) by using the Data Envelopment Analysis (DEA). The results, which proved to be solid and accurate, indicate that the most efficient businesses are the ones in the third class, whereas those hotels located in zones with tourist attractions and activities have a better optimization of those resources. This situation has an effect on the significant improvement of their productivity.

Efficiency in the Holiday and Other Short-Stay Accommodation Industry

“…The analysis by year allows us to understand the evolution of the efficiency over the period (it should be noted that the period includes the pre-2008 financial crisis years, the years affected by the 2008 financial crisis and post-2008 financial crisis years). It is also interesting to show the results by regional location because most related empirical studies find that location is a source of competitive advantage for tourism firms and the tourist accommodation sector [10,[15][16][17][18].…”

Marketing Engineering as a Progressive Platform for Optimizing Managerial Decision-making Processes in the Context of Current Challenges of Marketing Management

“…[20] However, in the context of marketing engineering, a wide space is created for the implementation of such tools of econometric instrumentation, which have not yet been used in the optimization of managerial decision-making processes in the context of current marketing management challenges. These are mainly expert methods of risk identification [21,22]; simple and multidimensional linear regression [23,24]; hedonic regression [25,26]; survival analysis, Kaplan-Meier analysis and Cox regression [27,28]; discrete choice analysis in the form of Logit and Probit models [10]; conjoint analysis [29,30] respectively data envelopment analysis (DEA) [31].…”

Benchmarking higher education institutes using data envelopment analysis: capturing perceptions of prospective engineering students

“…Further, Kohl et al [26] conducted a study in the healthcare domain employing the DEA technique. A DEA approach was employed for measuring the efficiency of hotel industries (Higuerey, 2020). There are other practical settings as addressed by Gupta et al [19] and Mogale et al [37], where the DEA approach can be applied in the revised contextual settings.…”