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The impact of tourist destination on hotel efficiency: A data envelopment analysis approach

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  • Lado-Sestayo, Rubén
  • Fernández-Castro, Ángel Santiago

Abstract

This paper evaluates the impact of location on hotel efficiency using a sample of 400 Spanish hotels, the novel aspect being that location is considered at the tourist destination level. Moreover, for the first time, the location variables are based on the main theoretical models concerning location in the hotel sector, namely geographical positioning models, agglomeration and urbanization economic models and competitive environment models. The methodology consists of a four-stage data envelopment analysis (DEA) model that decomposes super-efficiency in the portion attributable to the tourist destination and the portion attributable to hotel management. Then, managerial efficiency is regressed against hotel characteristics, while tourist destination efficiency is explained by the characteristic of each location. The findings highlight the importance of tourist destinations, providing novel empirical support for the propositions of the main location models. Indeed, the tourist destination is the main cause of differences in the level of efficiency among hotels. The occupancy level, degree of seasonality and market concentration are the variables with the greater impact on efficiency.

Suggested Citation

  • Lado-Sestayo, Rubén & Fernández-Castro, Ángel Santiago, 2019. "The impact of tourist destination on hotel efficiency: A data envelopment analysis approach," European Journal of Operational Research, Elsevier, vol. 272(2), pages 674-686.
    • Handle: RePEc:eee:ejores:v:272:y:2019:i:2:p:674-686
    DOI: 10.1016/j.ejor.2018.06.043
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    1. Baggio, Rodolfo, 2020. "Tourism destinations: A universality conjecture based on network science," Annals of Tourism Research, Elsevier, vol. 82(C).
    2. Duoxun Ba & Jing Zhang & Suocheng Dong & Bing Xia & Lin Mu, 2022. "Spatial-Temporal Characteristics and Driving Factors of the Eco-Efficiency of Tourist Hotels in China," IJERPH, MDPI, vol. 19(18), pages 1-24, September.
    3. Xiang Li & Tianyu Zhang & Liang Wang & Hongguang Ma & Xiande Zhao, 2022. "A minimax regret model for the leader–follower facility location problem," Annals of Operations Research, Springer, vol. 309(2), pages 861-882, February.
    4. Park, Jaehun & Lee, Byung Kwon, 2021. "An opinion-driven decision-support framework for benchmarking hotel service," Omega, Elsevier, vol. 103(C).
    5. Ján Dobrovič & Veronika Čabinová & Peter Gallo & Petra Partlová & Jan Váchal & Beáta Balogová & Jozef Orgonáš, 2021. "Application of the DEA Model in Tourism SMEs: An Empirical Study from Slovakia in the Context of Business Sustainability," Sustainability, MDPI, vol. 13(13), pages 1-19, July.
    6. Abdel Latef Anouze & Imad Bou-Hamad, 2021. "Inefficiency source tracking: evidence from data envelopment analysis and random forests," Annals of Operations Research, Springer, vol. 306(1), pages 273-293, November.
    7. Angel Higuerey & Christian Viñan-Merecí & Zulema Malo-Montoya & Valentín-Alejandro Martínez-Fernández, 2020. "Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel Industry in Ecuador," Sustainability, MDPI, vol. 12(4), pages 1-18, February.
    8. Yang Li & An-Chi Liu & Yi-Ying Yu & Yueru Zhang & Yiting Zhan & Wen-Cheng Lin, 2022. "Bootstrapped DEA and Clustering Analysis of Eco-Efficiency in China’s Hotel Industry," Sustainability, MDPI, vol. 14(5), pages 1-16, March.
    9. Francisca J. Sánchez-Sánchez & Ana M. Sánchez-Sánchez, 2024. "Evaluating the efficiency and determinants of mass tourism in Spain: a tourist area perspective," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 23(1), pages 111-145, January.
    10. Alemayehu, Fikru K. & Kumbhakar, Subal C. & Landazuri Tveteraas, Sigbjørn, 2022. "Estimation of staff use efficiency: Evidence from the hospitality industry," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    11. Eleni Dimitriadou & Asimina Kouriati & Sofia Karampela & Anna Tafidou & Thomas Bournaris, 2023. "The Three Dimensions of Small Accommodation Businesses and Their Efficiency," Tourism and Hospitality, MDPI, vol. 4(3), pages 1-16, August.
    12. Pilar Alberca & Laura Parte, 2020. "Efficiency in the Holiday and Other Short-Stay Accommodation Industry," Sustainability, MDPI, vol. 12(22), pages 1-22, November.
    13. Ying Zhang & Yunyan Li, 2023. "Regional Differences in Tourism Eco-Efficiency in the Beijing–Tianjin–Hebei Region: Based on Data from 13 Cities," Sustainability, MDPI, vol. 15(4), pages 1-15, February.

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