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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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    Cited by:

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    2. Park, Jaehun & Lee, Byung Kwon, 2021. "An opinion-driven decision-support framework for benchmarking hotel service," Omega, Elsevier, vol. 103(C).
    3. 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.
    4. 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.
    5. 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.
    6. Pilar Alberca & Laura Parte, 2020. "Efficiency in the Holiday and Other Short-Stay Accommodation Industry," Sustainability, MDPI, vol. 12(22), pages 1-22, November.

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