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Managerial efficiency and hospitality industry: the Portuguese case

Author

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  • Carlos Pestana Barros
  • Laurent Botti
  • Nicolas Peypoch
  • Bernardin Solonandrasana

Abstract

In this article, the innovative twostage procedure of Simar and Wilson (2007) is used to estimate the efficiency determinants of Portuguese hotel groups from 1998 to 2005. In the first stage, the hotels' technical efficiency is estimated with Data Envelopment Analysis (DEA), in order to establish which hotels have the most efficient performance. These could serve as peers to help improve performance of the least efficient hotels. In the second stage, the Simar and Wilson model is used to bootstrap the DEA scores with a truncated regression. The article contributes to the hotel industry literature by adopting a somewhat novel approach that has never been applied to this industry despite its managerial implications. The motivation for the analysis lies in the fact that during the period under analysis Portuguese hotels faced a number of threats. Knowing what the best practices are is then good news for managers and institutions.

Suggested Citation

  • Carlos Pestana Barros & Laurent Botti & Nicolas Peypoch & Bernardin Solonandrasana, 2011. "Managerial efficiency and hospitality industry: the Portuguese case," Applied Economics, Taylor & Francis Journals, vol. 43(22), pages 2895-2905.
  • Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2895-2905
    DOI: 10.1080/00036840802600145
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    References listed on IDEAS

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    1. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
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    1. repec:eee:respol:v:47:y:2018:i:5:p:924-935 is not listed on IDEAS
    2. Marco Corsino & Enrico Zaninotto, 2012. "Revealing the influence of managerial practices and entrepreneurs' characteristics on hotel efficiency," DISA Working Papers 2012/03, Department of Computer and Management Sciences, University of Trento, Italy, revised May 2012.
    3. repec:kap:jproda:v:48:y:2017:i:1:d:10.1007_s11123-017-0504-8 is not listed on IDEAS
    4. repec:eee:touman:v:51:y:2015:i:c:p:91-95 is not listed on IDEAS
    5. José Manuel Cordero & Cristina Polo & Daniel Santín & Gabriela Sicilia, 2016. "Monte-Carlo Comparison of Conditional Nonparametric Methods and Traditional Approaches to Include Exogenous Variables," Pacific Economic Review, Wiley Blackwell, vol. 21(4), pages 483-497, October.
    6. repec:eee:touman:v:36:y:2013:i:c:p:641-649 is not listed on IDEAS

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