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Hotel Efficiency Analysis from the Customer’s Point of View in Romania: A Stochastic Production Frontier Approach

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  • Liviu-George Maha
  • Elena Daniela Viorică
  • Mircea Asandului
  • Andreea Maha

Abstract

The purpose of this article is to measure the efficiency of hotel units in Romania from the customers’ point of view and to identify factors that explain the differences in efficiency between hotel units. A stochastic production frontier is estimated together with a technical inefficiency model using cross-sectional data from 622 hotel units in Romania. The results show that the average efficiency is high. However, there are significant differences between hotels in different regions and with different star ratings. The most influential factor affecting efficiency is the online visibility of a hotel unit on social media platforms and on travel planning sites. The study’s results offer insight for hotel decision-makers to be able to improve the perception of hotel efficiency by taking appropriate action to meet customer needs.

Suggested Citation

  • Liviu-George Maha & Elena Daniela Viorică & Mircea Asandului & Andreea Maha, 2018. "Hotel Efficiency Analysis from the Customer’s Point of View in Romania: A Stochastic Production Frontier Approach," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(3), pages 661-676, February.
    • Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:661-676
    DOI: 10.1080/1540496X.2017.1421168
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    Cited by:

    1. Guangming Yang & Yunrui Yang & Guofang Gong & Qingqing Gui, 2022. "The Spatial Network Structure of Tourism Efficiency and Its Influencing Factors in China: A Social Network Analysis," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    2. Walheer, Barnabé & Zhang, Linjia & Luo, Yingchan, 2020. "Bidirectional technological spillover in the Chinese star-rated hotel sector: An empirical investigation," Economic Modelling, Elsevier, vol. 86(C), pages 210-226.

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