The use of data envelopment analysis to monitor hotel productivity

Abstract

Data envelopment analysis (DEA) was used to monitor and benchmark productivity in a chain of 15 hotels over a 12‐month period. Quarter results were compared with each other and with standard accounting data for the same period. In this way it was possible to identify and study units which showed anomalous behavour in terms of their measured productivity and gross profit. These were apparently related to factors other than size or staffing levels. Advantages and disadvantages of DEA are discussed, as well as its potential for the motivation and appraisal of local management and for optimizing budgetary control. © 1997 John Wiley & Sons, Ltd.

The contributions of economics to hospitality literature: A content analysis of hospitality and tourism journals

“…Other than the market analysis studies, the next major topical area derived from the literature review was performance-related studies, which mainly involved productivity (e.g., Surugiu et al, 2012;Botti et al, 2010;Jones and Siag, 2009;Reynolds, 2003;Hu and Cai, 2004;Johns et al, 1997) and efficiency analyses (Oliveira et al, 2013;Honma and Hu, 2012;Barros et al, 2010;Untong et al, 2011;Wu et al, 2010;Barros, 2005;Hwang and Chang, 2003). As alternative ways of measuring performance, productivity and efficiency are concerned with input-output relationships.…”

Does Triple Bottom Line reporting improve hotel performance?

“…DEA has been used extensively in the hotel literature (Peypoch and Sbai, 2010;Yu and Lee, 2009;Barros and Dieke, 2008;Reynolds and Thomson, 2007;Barros and Santos, 2006;Barros, 2005;Barros and Alves, 2004;Chiang et al, 2004;Hwang and Chang, 2003;Brown and Ragsdale, 2002;Johns et al, 1997). A DEA efficiency measure (î i ) can be simply derived by solving the following linear programming:…”

Cost efficiency modeling in health care foodservice operations

“…DEA is popular in the literature as it can readily incorporate multiple inputs and outputs, and it does not require a prior specification of the functional form between inputs and outputs (Banker and Thrall, 1992). For practical application of the method in hospitality and tourism industry refer to Onut and Soner (2006), Fei-Ching et al (2006), Barros (2005), Sigala et al (2005), Brown and Ragsdale (2002), Randy et al (2000), Johns et al (1997). Like any empirical technique, DEA is also based on a number of simplifying assumptions that need to be acknowledged when interpreting the results of DEA studies.…”