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Operational Efficiency and Technology Gap Ratio of Hotels under Different Environments (in Thai)

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  • Akarapong Untong

    ()
    (Public Policy Studies Institute, Chiang Mai University, Chiang Mai, Thailand)

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    Abstract

    This paper applied data envelopment analysis with slacks-based measure and metafrontier analysis to assess the operational efficiencies and technology gap ratios of the resorts and boutique hotels of Thailand’s hotel chain in Chiang Mai and Phuket. Data were from 14 hotels in Chiang Mai and 34 hotels in Phuket. It was found that hotels belonging to each type, in Chiang Mai and Phuket, had no difference in efficiencies but had different technology gap ratios; the environment caused the differences. Environment is associated with location.These differences prompted the hotels to apply diverse innovations in their operations. Hotels in Phuket had a higher operational technology than those in Chiang Mai. Increasing the efficiency of room occupancy and enhancing labor productivity would improve efficiency more than reducing operational cost. The findings suggest that approaches to promote the efficiency of a hotel’s operation should vary in accordance to environment. The hotels would also do well to develop and share innovations in operation based on their environment.

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    Bibliographic Info

    Article provided by Kasetsart University, Faculty of Economics, Center for Applied Economic Research in its journal Applied Economics Journal.

    Volume (Year): 20 (2013)
    Issue (Month): 2 (December)
    Pages: 37-54

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    Handle: RePEc:aej:apecjn:v:20:y:2013:i:2:p:37-54

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    Keywords: Hotel; operational efficiency; technology gap ratio; metafrontier; slacks-based measure;

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