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Using data envelopment analysis to measure hotel efficiency in Crete

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  • Alexandros Apostolakis

    ()
    (Department of Economics, Portsmouth Business School, University of Portsmouth)

  • George Datseris

    ()
    (Department of Finance and Insurance, School of Management and Economics, Technological Educational Institute of Crete)

  • Constantine Manasakis

    ()
    (Department of Economics, University of Crete, Greece)

Abstract

The present paper studies the relative efficiency between hotels operating under a brand and hotels operating independently, in the island of Crete, Greece, using the Data Envelopment Analysis. Interestingly enough, we find that nationally branded hotels are the relatively most efficient; internationally branded are the least efficient, while those operating under a local brand and the independent ones lie in between. This efficiency ranking can be explained by the interplay between operating under a brand and being to changes in the local market�s conditions. We also investigate the inefficiency causes and make suggestions for improvements, in the transformation of inputs to outputs, for each type of hotels studied.

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File URL: http://economics.soc.uoc.gr/wpa/docs/DEA_Hotel-Efficiency-Crete.pdf
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Bibliographic Info

Paper provided by University of Crete, Department of Economics in its series Working Papers with number 1203.

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Handle: RePEc:crt:wpaper:1203

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Related research

Keywords: Superior hotels; Crete; technical efficiency; scale efficiency; slack analysis;

References

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  1. Perrigot, Rozenn & Cliquet, Gérard & Piot-Lepetit, Isabelle, 2009. "Plural form chain and efficiency: Insights from the French hotel chains and the DEA methodology," European Management Journal, Elsevier, vol. 27(4), pages 268-280, August.
  2. Pulina, Manuela & Detotto, Claudio & Paba, Antonello, 2010. "An investigation into the relationship between size and efficiency of the Italian hospitality sector: A window DEA approach," European Journal of Operational Research, Elsevier, vol. 204(3), pages 613-620, August.
  3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
  4. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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