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Determinants of Tunisian hotel profitability: The role of managerial efficiency

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  • Ben Aissa, Sami
  • Goaied, Mohamed

Abstract

Using financial data derived from 27 hotel companies operating in Tunisia, the paper reports an analysis of hotel profitability. Using Data Envelopment Analysis (DEA) and the Return On Assets (ROA) analysis managerial efficiency is shown to be important when holding geographical and operating contracts as constants. Nonetheless these two aspects have important implications for hotel profitability. Hotel size, level of indebtedness, exposure to crisis events and levels of managers' education are also influential. The implications for management tenure and optimal age of a hotel are discussed.

Suggested Citation

  • Ben Aissa, Sami & Goaied, Mohamed, 2016. "Determinants of Tunisian hotel profitability: The role of managerial efficiency," Tourism Management, Elsevier, vol. 52(C), pages 478-487.
    • Handle: RePEc:eee:touman:v:52:y:2016:i:c:p:478-487
    DOI: 10.1016/j.tourman.2015.07.015
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    3. Han-Shen Chen & Bi-Kun Tsai & Gwo-Bao Liou & Chi-Ming Hsieh, 2018. "Efficiency Assessment of Inbound Tourist Service Using Data Envelopment Analysis," Sustainability, MDPI, vol. 10(6), pages 1-14, June.
    4. Maryam H. El Alaoui & Mustapha D. Ibrahim & Sahand Daneshvar & Uju Violet Alola & Andrew Adewale Alola, 2023. "A two-stage data envelopment analysis approach to productivity, efficiency and their sustainability in the hotel industry of Tunisia," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(1), pages 955-972, February.
    5. Retnam Uthayakumar & Yapa Hamilage Purnima Kalpani Yapa, 2023. "Impact of Budgetary Process on Financial Performance of Listed Companies in Sri Lanka," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 881-901, May.
    6. Nicholas Apergis & Chi Keung Lau, 2022. "Hotel Revenue Convergence: Evidence Across Star Hotels in Chinese Provinces," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 50(1), pages 37-51, June.
    7. Nursyuhada Mohd Taib & Mira Susanti Amirrudin & Nooraslinda Abdul Aris, 2024. "Hotel Quality Ratings and Financially Sustainable Performance in Malaysia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(10), pages 2819-2834, October.
    8. Muhammad Imran & Fiaz Ahmad Sulehri, 2023. "Impact Of Financial Risk On Profitability: A Comparative Study Of Manufacturing And Services Sectors Of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(1), pages 18-13.
    9. Prageeth Roshan Weerathunga & Chen Xiaofang & Manoj Samarathunga, 2019. "Firm-specific and Contextual Determinants of Sri Lankan Corporate Hotel Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 213-224.
    10. Goran Karanovic, 2023. "Exploring the Intrinsic Factors Influencing Return on Assets: A Case Study of the Hotel Industry in Selected EU Countries," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 16(1), pages 54-61, October.
    11. Bauman, Allison & Jablonski, Becca B.R. & Thilmany McFadden, Dawn, 2016. "Evaluating Scale and Technical Efficiency among Farms and Ranches with a Local Market Orientation," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 242364, Agricultural and Applied Economics Association.
    12. Song, Malin & Li, Hui, 2019. "Estimating the efficiency of a sustainable Chinese tourism industry using bootstrap technology rectification," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 45-54.
    13. Hedija Veronika & Fiala Roman & Kuncová Martina, 2017. "Is profitability a good proxy for efficiency? Evidence from the subsector of tour operators," Review of Economic Perspectives, Sciendo, vol. 17(4), pages 425-440, December.
    14. Manuela Pulina & Valentina Santoni, 2018. "A two-stage DEA approach to analyse the efficiency of the hospitality sector," Tourism Economics, , vol. 24(3), pages 352-365, May.
    15. P. R. Weerathunga & Cheng Xiaofang & W. H. M.S. Samarathunga & P. M. B. Jayathilake, 2020. "The Relative Effect of Growth of Economy, Industry Expansion, and Firm-Specific Factors on Corporate Hotel Performance in Sri Lanka," SAGE Open, , vol. 10(2), pages 21582440209, April.
    16. Chuanming Sun & Xingyu Chai & Qing Fan & Wenyuan Zhang, 2023. "The Impact of Hygiene Factors on Online Hotel Consumption in China during the COVID-19 Pandemic," Sustainability, MDPI, vol. 15(4), pages 1-16, February.
    17. Kukanja Marko & Planinc Tanja, 2019. "Cost-Effective Service Excellence: Exploring the Relationships Among Restaurants’ Operational Efficiency, Size and Service Quality," South East European Journal of Economics and Business, Sciendo, vol. 14(2), pages 67-81, December.
    18. Martin Falk & Robert Steiger, 2020. "Size facilitates profitable ski lift operations," Tourism Economics, , vol. 26(7), pages 1197-1211, November.
    19. Fernanda Matias & Sandra Rebelo & Georgette Andraz & José Guerreiro, 2024. "The Influence of Firm Characteristics and Macroeconomic Factors on Financial Performance: Evidence from the Portuguese Hotel Industry," Economies, MDPI, vol. 12(11), pages 1-13, November.
    20. Boccali, Filippo & Mariani, Marcello M. & Visani, Franco & Mora-Cruz, Alexandra, 2022. "Innovative value-based price assessment in data-rich environments: Leveraging online review analytics through Data Envelopment Analysis to empower managers and entrepreneurs," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    21. 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.
    22. Yufeng Chen & Zhitao Zhu & Lin Zhuang, 2022. "Exploring the Ecological Performance of China’s Tourism Industry: A Three-Stage Undesirable SBM-DEA Approach with Carbon Footprint," IJERPH, MDPI, vol. 19(22), pages 1-18, November.

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