IDEAS home Printed from https://ideas.repec.org/a/rfe/zbefri/v42y2024i1p9-38.html
   My bibliography  Save this article

The performance of Croatian hotel companies – DEA window and Malmquist productivity index approach

Author

Listed:
  • Andrea Arbula Blecich

    (University of Rijeka, Faculty of Economics and Business, Rijeka, Croatia)

Abstract

The hospitality industry operates in a dynamic and competitive environment where efficiency and productivity are crucial for sustainable success. The main goal of this paper is to assess the dynamic changes in the efficiency and productivity of large and very large Croatian hotel companies and to investigate whether their location influences these factors. It also aims to determine how resilient the companies are to macroeconomic shocks and to identify the causes of inefficiency and productivity changes separately for each location. The analysis is conducted for 70 large and very large hotel companies in total and separately for those in coastal and the continental Croatia from 2017 to 2022 using the Window Data Envelopment Analysis and the Malmquist Productivity Index. The results show a slight decrease in relative efficiency in 2020 due to the impact of the COVID-19 pandemic. The main cause of inefficiency for coastal hotel companies throughout the period is management performance and other exogenous factors. Conversely, the main cause of inefficiency for continental hotel companies shifted from non-optimal production size to management and other exogenous factors after 2020. Productivity declined between 2019 and 2020 due to the decline in technological change for companies in both locations. Prior to 2020, coastal and continental hotel companies followed a similar trend. While coastal hotels recovered faster in 2021, continental hotels recovered more steadily and achieved higher productivity in 2022. This research provides valuable insights for hotel managers and academics seeking to navigate the ever-changing field of hotel management.

Suggested Citation

  • Andrea Arbula Blecich, 2024. "The performance of Croatian hotel companies – DEA window and Malmquist productivity index approach," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 42(1), pages 9-38.
    • Handle: RePEc:rfe:zbefri:v:42:y:2024:i:1:p:9-38
    as

    Download full text from publisher

    File URL: https://www.efri.uniri.hr/upload/zbornik%201-2024/02-Arbula_Blecich-2024-1_new.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barros, Carlos Pestana & Botti, Laurent & Peypoch, Nicolas & Robinot, Elisabeth & Solonandrasana, Bernardin & A., George Assaf, 2011. "Performance of French destinations: Tourism attraction perspectives," Tourism Management, Elsevier, vol. 32(1), pages 141-146.
    2. Halkos, George Emm. & Tzeremes, Nickolaos G., 2009. "Exploring the existence of Kuznets curve in countries' environmental efficiency using DEA window analysis," Ecological Economics, Elsevier, vol. 68(7), pages 2168-2176, May.
    3. 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.
    4. Aziz KUTLAR & Ali KABASAKAL & Adem BABACAN, 2015. "Dynamic Efficiency of Turkish Banks: a DEA Window and Malmquist Index Analysis for the Period of 2003-2012," Sosyoekonomi Journal, Sosyoekonomi Society, issue 23(24).
    5. Yusuf Günaydın & Antónia Correia & Metin Kozak, 2022. "Comparing efficiency in all-inclusive and bed and breakfast hotel businesses: a multi-period data envelopment analysis in Turkey," European Journal of Management and Business Economics, Emerald Group Publishing Limited, vol. 31(4), pages 439-452, June.
    6. Yamin Du & Wonchul Seo, 2022. "A Comparative Study on the Efficiency of R&D Activities of Universities in China by Region Using DEA–Malmquist," Sustainability, MDPI, vol. 14(16), pages 1-13, August.
    7. Jose M. Cordero & Nickolaos G. Tzeremes, 2017. "Evaluating hotel productivity growth in Balearic and Canary islands," Tourism Economics, , vol. 23(5), pages 1146-1154, August.
    8. Cullinane Kevin & Song Dong-Wook & Ji Ping & Wang Teng-Fei, 2004. "An Application of DEA Windows Analysis to Container Port Production Efficiency," Review of Network Economics, De Gruyter, vol. 3(2), pages 1-23, June.
    9. A. Georges Assaf & Frank W. Agbola, 2011. "Modelling the Performance of Australian Hotels: A DEA Double Bootstrap Approach," Tourism Economics, , vol. 17(1), pages 73-89, February.
    10. Katarina Poldrugovac & Metka Tekavcic & Sandra Jankovic, 2016. "Efficiency in the hotel industry: an empirical examination of the most influential factors," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 29(1), pages 583-597, January.
    11. 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.
    12. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    13. 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.
    14. Lado-Sestayo, Rubén & Fernández-Castro, Ángel Santiago, 2019. "The impact of tourist destination on hotel efficiency: A data envelopment analysis approach," European Journal of Operational Research, Elsevier, vol. 272(2), pages 674-686.
    15. Fakarudin Kamarudin & Fadzlan Sufian & Annuar Md. Nassir & Nazratul Aina Mohamad Anwar & Hafezali Iqbal Hussain, 2019. "Bank Efficiency in Malaysia a DEA Approach," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 8(1), pages 133-162.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Goran Radoš, 2024. "Impact of labour income in gross value added on migrations in Bosnia and Herzegovina," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 42(1), pages 149-166.
    2. Claudio Detotto & Manuela Pulina & Juan Brida, 2014. "Assessing the productivity of the Italian hospitality sector: a post-WDEA pooled-truncated and spatial analysis," Journal of Productivity Analysis, Springer, vol. 42(2), pages 103-121, October.
    3. Matthias Klumpp, 2018. "How to Achieve Supply Chain Sustainability Efficiently? Taming the Triple Bottom Line Split Business Cycle," Sustainability, MDPI, vol. 10(2), pages 1-23, February.
    4. Angeliki Flokou & Vassilis Aletras & Dimitris Niakas, 2017. "A window-DEA based efficiency evaluation of the public hospital sector in Greece during the 5-year economic crisis," PLOS ONE, Public Library of Science, vol. 12(5), pages 1-26, May.
    5. Yasuo Ohe & Nicolas Peypoch, 2016. "Efficiency analysis of Japanese Ryokans," Tourism Economics, , vol. 22(6), pages 1261-1273, December.
    6. Pilar Alberca & Laura Parte, 2020. "Efficiency in the Holiday and Other Short-Stay Accommodation Industry," Sustainability, MDPI, vol. 12(22), pages 1-22, November.
    7. Androutsou, Lorena & Metaxas, Theodore, 2018. "Measuring the effeciency of medical tourism industry in EU members states," MPRA Paper 92461, University Library of Munich, Germany.
    8. Hai Dong & Nicolas Peypoch & Linjia Zhang, 2020. "Do contextual factors matter? Evidence from Chinese hotel productivity with heterogeneity," Tourism Economics, , vol. 26(2), pages 257-275, March.
    9. Barnabé Walheer, 2019. "Dynamic directional nonparametric profit efficiency analysis for a single decision-making unit: an aggregation approach," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(4), pages 1123-1149, December.
    10. Chen, Chih Cheng, 2017. "Measuring departmental and overall regional performance: applying the multi-activity DEA model to Taiwan׳s cities/counties," Omega, Elsevier, vol. 67(C), pages 60-80.
    11. 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.
    12. Meleddu, Marta & Pulina, Manuela, 2018. "Public spending on renewable energy in Italian regions," Renewable Energy, Elsevier, vol. 115(C), pages 1086-1098.
    13. George E. Halkos & Christina Bampatsou, 2019. "Economic growth and environmental degradation: a conditional nonparametric frontier analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 325-347, April.
    14. OA Carboni & P. Russu, 2014. "Measuring Environmental and Economic Efficiency in Italy: an Application of the Malmquist-DEA and Grey Forecasting Model," Working Paper CRENoS 201401, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    15. M. Deidda & N. Garrido & M. Pulina, 2011. "Exploring the dynamics of the efficiency in the Italian hospitality sector. A regional case study," Working Paper CRENoS 201117, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    16. Mehmet APAN & İhsan ALP & Ahmet ÖZTEL, 2019. "Determination of the Efficiencies of Textile Firms Listed in Borsa İstanbul by Using DEA-Window Analysis," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(42).
    17. Hongwei Liu & Henry Tsai, 2018. "Total factor productivity growth and regional competitive analysis of China’s star-rated hotels," Tourism Economics, , vol. 24(6), pages 625-644, September.
    18. Suarez-Fernandez, Sara & Quiroga-Garcia, Raquel & Manzano-Perez, Isabel, 2021. "A Comparison of DEA and SFA Approaches: Application to the US Non-Life Insurance Market," Asian Journal of Applied Economics/ Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 28(2), pages 107-127, December.
    19. Baran Joanna & Górecka Aleksandra, 2015. "Seaport efficiency and productivity based on Data Envelopment Analysis and Malmquist Productivity Index," Logistics, Supply Chain, Sustainability and Global Challenges, Sciendo, vol. 6(1), pages 25-33, November.
    20. Chia-Nan Wang & Hector Tibo & Van Thanh Nguyen & Duy Hung Duong, 2020. "Effects of the Performance-Based Research Fund and Other Factors on the Efficiency of New Zealand Universities: A Malmquist Productivity Approach," Sustainability, MDPI, vol. 12(15), pages 1-18, July.

    More about this item

    Keywords

    hotel companies; efficiency; productivity; Malmquist Productivity Index (MPI); Window Data Envelopment analysis;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfe:zbefri:v:42:y:2024:i:1:p:9-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Danijela Ujcic (email available below). General contact details of provider: https://edirc.repec.org/data/efrijhr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.