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A Stochastic Cost Frontier in the Portuguese Hotel Industry

Author

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  • Carlos Pestana Barros

    (Instituto Superior de Economia e Gestao, Technical University of Lisbon, rua Miguel Lupi 20, 1249-078 Lisbon, Portugal)

Abstract

This paper analyses the technical efficiency of a Portuguese state-owned hotel chain, Pousadas de Portugal, in order to investigate the chain's performance. A stochastic cost frontier model is used to generate hotel efficiency scores, assuming that efficiency is time-varying. The author investigates the efficiency and finds that the results are at best mixed, since the efficient scores are low and not time-varying. He therefore proposes an alteration of management procedures to enable an increase in efficiency, based on a governance-environment framework.

Suggested Citation

  • Carlos Pestana Barros, 2004. "A Stochastic Cost Frontier in the Portuguese Hotel Industry," Tourism Economics, , vol. 10(2), pages 177-192, June.
    • Handle: RePEc:sae:toueco:v:10:y:2004:i:2:p:177-192
    DOI: 10.5367/000000004323142416
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    References listed on IDEAS

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    Cited by:

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    3. Deng, Yaguo, 2016. "Efficiency evaluation of Spanish hotel chains," DES - Working Papers. Statistics and Econometrics. WS 23897, Universidad Carlos III de Madrid. Departamento de Estadística.
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    5. Huang, Chin-wei & Ho, Foo Nin & Chiu, Yung-ho, 2014. "Measurement of tourist hotels׳ productive efficiency, occupancy, and catering service effectiveness using a modified two-stage DEA model in Taiwan," Omega, Elsevier, vol. 48(C), pages 49-59.
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    9. Oliveira, Ricardo & Pedro, Maria Isabel & Marques, Rui Cunha, 2013. "Efficiency and its determinants in Portuguese hotels in the Algarve," Tourism Management, Elsevier, vol. 36(C), pages 641-649.
    10. Luis César Herrero-Prieto & Mafalda Gómez-Vega, 2017. "Cultural resources as a factor in cultural tourism attraction," Tourism Economics, , vol. 23(2), pages 260-280, March.
    11. 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.
    12. Luis Felipe Mendieta-Peñalver & José F Perles-Ribes & Ana B Ramón-Rodríguez & María J Such-Devesa, 2018. "Is hotel efficiency necessary for tourism destination competitiveness? An integrated approach," Tourism Economics, , vol. 24(1), pages 3-26, February.
    13. 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.
    14. Nguyen To-The & Tuan Nguyen-Anh, 2021. "Impact of government intervention to maize efficiency at farmer’s level across time: a robust evidence in Northern Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(2), pages 2038-2061, February.
    15. Neha Sharma & Sandeep Kumar Mogha, 2024. "Super efficiency and sensitivity analysis of the Indian hotels and restaurants," OPSEARCH, Springer;Operational Research Society of India, vol. 61(4), pages 2131-2157, December.
    16. Antonio Arbelo & Pilar Pérez-Gómez & Marta Arbelo-Pérez, 2017. "Cost efficiency and its determinants in the hotel industry," Tourism Economics, , vol. 23(5), pages 1056-1068, August.
    17. Dzonzi-Undi, Junice & Li, Shixiang, 2016. "Safety and environmental inputs investment effect analysis: Empirical study of selected coal mining firms in China," Resources Policy, Elsevier, vol. 47(C), pages 178-186.
    18. Marco Corsino & Enrico Zaninotto, 2012. "Revealing the influence of managerial practices and entrepreneurs' characteristics on hotel efficiency," DISA Working Papers 2012/03, Department of Computer and Management Sciences, University of Trento, Italy, revised May 2012.
    19. Arbelo-Pérez, Marta & Arbelo, Antonio & Pérez-Gómez, Pilar, 2017. "Impact of quality on estimations of hotel efficiency," Tourism Management, Elsevier, vol. 61(C), pages 200-208.
    20. Daniel Adrian Gârdan & Ionel Dumitru & Iuliana Petronela Gârdan & Carmen Adina Paștiu, 2020. "Touristic SME’s Competitiveness in the Light of Present Challenges—A Qualitative Approach," Sustainability, MDPI, vol. 12(21), pages 1-18, November.

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