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Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel Industry in Ecuador

Author

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  • Angel Higuerey

    (Ciencias Empresariales, Universidad Técnica Particular de Loja, Loja 110150, Ecuador
    Instituto Experimental de Investigaciones Humanísticas, Económicas y Sociales (IEXIHES), Universidad de Los Andes, Trujillo 3150, Venezuela)

  • Christian Viñan-Merecí

    (Ciencias Empresariales, Universidad Técnica Particular de Loja, Loja 110150, Ecuador)

  • Zulema Malo-Montoya

    (Ciencias Empresariales, Universidad Técnica Particular de Loja, Loja 110150, Ecuador)

  • Valentín-Alejandro Martínez-Fernández

    (Departamento de Empresa, Facultad de Economía y Empresa, Universidad de la Coruña, 15071 Coruña, Spain)

Abstract

The level of contribution of the hotel industry depends on different factors of production that they use in the provision of their services The way they use these factors of production will allow them to act efficiently, in order to improve profitability and market position. Ecuador, in recent years, has directed public policies betting on the development of this industry. In this sense, this research seeks to measure the efficiency and productivity of the Ecuadorian hotel industry. For this purpose, a significant sample has been selected; it consists of 147 businesses that provided hotel services during the period 2013–2017. These businesses are classified according to their quality and geographic location. This information has been useful to make a balanced panel data with one output (Revenue) and three inputs (Total_personnel, the non-current assets, and Consumption) by using the Data Envelopment Analysis (DEA). The results, which proved to be solid and accurate, indicate that the most efficient businesses are the ones in the third class, whereas those hotels located in zones with tourist attractions and activities have a better optimization of those resources. This situation has an effect on the significant improvement of their productivity.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:4:p:1590-:d:322957
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    References listed on IDEAS

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    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. 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. 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.
    5. 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.
    6. Martin Flegl & Hazael Cerón-Monroy & Igor Krejčí & Josef Jablonský, 2023. "Estimating the hospitality efficiency in Mexico using Data Envelopment Analysis," OPSEARCH, Springer;Operational Research Society of India, vol. 60(1), pages 188-216, March.
    7. 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.
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