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Using data envelopment analysis to measure hotel efficiency in Crete

Author

Listed:
  • Alexandros Apostolakis

    (Department of Economics, Portsmouth Business School, University of Portsmouth)

  • George Datseris

    (Department of Finance and Insurance, School of Management and Economics, Technological Educational Institute of Crete)

  • Constantine Manasakis

    (Department of Economics, University of Crete, Greece)

Abstract

The present paper studies the relative efficiency between hotels operating under a brand and hotels operating independently, in the island of Crete, Greece, using the Data Envelopment Analysis. Interestingly enough, we find that nationally branded hotels are the relatively most efficient; internationally branded are the least efficient, while those operating under a local brand and the independent ones lie in between. This efficiency ranking can be explained by the interplay between operating under a brand and being to changes in the local market's conditions. We also investigate the inefficiency causes and make suggestions for improvements, in the transformation of inputs to outputs, for each type of hotels studied.

Suggested Citation

  • Alexandros Apostolakis & George Datseris & Constantine Manasakis, "undated". "Using data envelopment analysis to measure hotel efficiency in Crete," Working Papers 1203, University of Crete, Department of Economics.
    • Handle: RePEc:crt:wpaper:1203
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    File URL: http://economics.soc.uoc.gr/wpa/docs/DEA_Hotel-Efficiency-Crete.pdf
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    References listed on IDEAS

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    1. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    2. Rozenn Perrigot & Gérard Cliquet & Isabelle Piot-Lepetit, 2009. "Plural form chain and efficiency: Insights from theFrench hotel chains and the DEA methodology," Post-Print halshs-00422241, HAL.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. Pulina, Manuela & Detotto, Claudio & Paba, Antonello, 2010. "An investigation into the relationship between size and efficiency of the Italian hospitality sector: A window DEA approach," European Journal of Operational Research, Elsevier, vol. 204(3), pages 613-620, August.
    5. Perrigot, Rozenn & Cliquet, Gérard & Piot-Lepetit, Isabelle, 2009. "Plural form chain and efficiency: Insights from the French hotel chains and the DEA methodology," European Management Journal, Elsevier, vol. 27(4), pages 268-280, August.
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    Citations

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    Cited by:

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    2. Athanasia Karakitsiou & Markos Kourgiantakis & Athanasia Mavrommati & Athanasios Migdalas, 2020. "Regional efficiency evaluation by input-oriented data envelopment analysis of hotel and restaurant sector," Operational Research, Springer, vol. 20(4), pages 2041-2058, December.
    3. Francisco Javier Sáez-Fernández & Ignacio Jiménez-Hernández & María del Sol Ostos-Rey, 2020. "Seasonality and Efficiency of the Hotel Industry in the Balearic Islands: Implications for Economic and Environmental Sustainability," Sustainability, MDPI, vol. 12(9), pages 1-17, April.
    4. Zutao Deng & Yan Gao & Bin Liang & Alastair M Morrison, 2020. "Efficiency evaluation of hotel operations in Mainland China based on the superefficiency SBM model," Tourism Economics, , vol. 26(2), pages 276-298, March.
    5. David Fang & Ming‐Ching Hsueh & Ching‐Ren Chiu, 2020. "An investigation of international hotel productivity considering quasifixed inputs and negative outputs," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 380-388, April.
    6. Eleni Dimitriadou & Thomas Bournaris & Theodoros Stavrinoudis & Olga Iakovidou, 2021. "The Efficiency Score of Small Accommodation Businesses in Non-Coastal Rural Areas in Greece," Sustainability, MDPI, vol. 13(19), pages 1-15, October.

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