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Efficiency in the hotel industry: an empirical examination of the most influential factors

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  • Katarina Poldrugovac
  • Metka Tekavcic
  • Sandra Jankovic

Abstract

The purpose of this article is to provide insights into hotel efficiency and investigate which hotels are performing better. Hotel efficiency is examined using data envelopment analysis (DEA) and the output-oriented BCC model is applied on the hotels’ internal accounting information. The study further explores whether there are differences in efficiency between hotels of different size and quality. The results show that average efficiency is high, but not all hotels are performing at their maximum efficiency. A significant relationship between size and hotel efficiency has been found. This study provides a potential framework for efficiency measurement and contributes to the growing body of knowledge in the area of hotel efficiency in the context of a country that is predominantly concentrated on seasonal seaside tourism. The results of this research offer useful insights for hotel managers, suggest ways of enhancing hotel productivity and provide guidance on which aspects to focus their attention in the decision-making process.

Suggested Citation

  • Katarina Poldrugovac & Metka Tekavcic & Sandra Jankovic, 2016. "Efficiency in the hotel industry: an empirical examination of the most influential factors," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 29(1), pages 583-597, January.
    • Handle: RePEc:taf:reroxx:v:29:y:2016:i:1:p:583-597
    DOI: 10.1080/1331677X.2016.1177464
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    Cited by:

    1. Cheng-Sheng Lin & Chin-Shyang Shyu & Cheng-Ping Li, 2023. "The Greener the Hotel, the Better Operating Efficiency It Has? A Sustainable Tourism Perspective," Sustainability, MDPI, vol. 15(14), pages 1-16, July.
    2. 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.
    3. 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.

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