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Efficiency of travel agency franchises: a study in Spain

Author

Listed:
  • José M. Ramírez-Hurtado

    (Pablo de Olavide University)

  • Ignacio Contreras

    (Pablo de Olavide University)

Abstract

Efficiency in a firm is important because it ensures that the economy’s scarce resources are not being wasted. It produces something else of value—profits or the continued existence of the organisation. This work contributes to the literature on efficiency in franchising. Specifically, it is focused on the sector of travel agencies which operate in the franchising system in Spain. This fact is an original contribution and is very important because until now there have not been any studies about efficiency in this sector of franchising. The results show that the number of brand names which are efficient is around 50%. This means that many chains are not efficient. This result may be, to a great extent, a result of the dynamics of this sector in recent years. A Tobit model is also used in order to characterise the franchisors’ efficiency. Some important findings are showed.

Suggested Citation

  • José M. Ramírez-Hurtado & Ignacio Contreras, 2017. "Efficiency of travel agency franchises: a study in Spain," Service Business, Springer;Pan-Pacific Business Association, vol. 11(4), pages 717-739, December.
  • Handle: RePEc:spr:svcbiz:v:11:y:2017:i:4:d:10.1007_s11628-016-0326-1
    DOI: 10.1007/s11628-016-0326-1
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    References listed on IDEAS

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    Cited by:

    1. Esther Calderón-Monge & José M. Ramírez-Hurtado, 2022. "Measuring the consumer engagement related to social media: the case of franchising," Electronic Commerce Research, Springer, vol. 22(4), pages 1249-1274, December.
    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.

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    More about this item

    Keywords

    Efficiency; Franchising; Data envelopment analysis; Tobit model; Travel agency industry;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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