Using data envelopment analysis to measure hotel efficiency in Crete
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.
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- 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.
- 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.
- 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.
- 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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