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Why Negative Outputs are Often Ignored: A Comprehensive Measure of Hotel Performance

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  • A. George Assaf

    (Isenberg School of Management, University of Massachusetts-Amherst, 90 Campus Center Way, MA 01003, USA)

  • Ljubica Knezevic Cvelbar

    (Faculty of Economics, University of Ljubljana (FELU), Slovenia)

Abstract

Studies often overlook negative outputs when measuring hotel performance. This paper investigates the consequences of such omissions by comparing two performance models, one that includes negative outputs (customer complaints) and one that excludes negative outputs. The authors show that excluding negative outputs underestimates the efficiency and productivity results. The results also indicate important differences in the performance ranking of hotels when negative outputs were excluded from the model. The authors also found that hotel size and hotel classification have a minor impact on performance when accounting for negative outputs.

Suggested Citation

  • A. George Assaf & Ljubica Knezevic Cvelbar, 2015. "Why Negative Outputs are Often Ignored: A Comprehensive Measure of Hotel Performance," Tourism Economics, , vol. 21(4), pages 761-773, August.
    • Handle: RePEc:sae:toueco:v:21:y:2015:i:4:p:761-773
    DOI: 10.5367/te.2014.0386
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    References listed on IDEAS

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    4. A. Georges Assaf & Frank W. Agbola, 2011. "Modelling the Performance of Australian Hotels: A DEA Double Bootstrap Approach," Tourism Economics, , vol. 17(1), pages 73-89, February.
    5. Zaim, Osman, 2004. "Measuring environmental performance of state manufacturing through changes in pollution intensities: a DEA framework," Ecological Economics, Elsevier, vol. 48(1), pages 37-47, January.
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    Cited by:

    1. Manuela Presutti & Marco Savioli & Vincenza Odorici, 2020. "Strategic orientation of hotels: Evidence from a contingent approach," Tourism Economics, , vol. 26(7), pages 1212-1230, November.
    2. A. George Assaf & Alexander Josiassen & Jin Sun Ahn & Anna S. Mattila, 2017. "Advertising spending, firm performance, and the moderating impact of CSR," Tourism Economics, , vol. 23(7), pages 1484-1495, November.
    3. Tsionas, Efthymios & Assaf, A. George & Gillen, David & Mattila, Anna S., 2017. "Modeling technical and service efficiency," Transportation Research Part B: Methodological, Elsevier, vol. 96(C), pages 113-125.
    4. Wasfi Alrawabdeh, 2022. "Seasonal balancing of revenue and demand in hotel industry: the case of Dubai City," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(1), pages 36-49, February.
    5. Assaf, A. George & Tsionas, Mike G., 2019. "A review of research into performance modeling in tourism research - Launching the Annals of Tourism Research curated collection on performance modeling in tourism research," Annals of Tourism Research, Elsevier, vol. 76(C), pages 266-277.

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