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Modelling the Performance of Australian Hotels: A DEA Double Bootstrap Approach

Author

Listed:
  • A. Georges Assaf

    (Isenberg School of Management, 90 Campus Center Way, 209A Flint Lab, University of Massachusetts–Amherst, Amherst, MA 01003, USA)

  • Frank W. Agbola

    (Newcastle Business School, University of Newcastle, Callaghan, New South Wales, Australia)

Abstract

This study uses the data envelopment analysis (DEA) double bootstrap approach to assess the technical efficiency standing of Australian hotels. Two inputs and six outputs were used in the analyses for the period 2004–2007. The empirical results indicate that the DEA bootstrap approach corrects for the bias inherent in traditional DEA models. The results show that the average technical efficiency of Australian hotels has improved gradually from 76.17% in 2004 to reach its highest level of 80.84% in 2007. The results also indicate that the key determinants of the technical efficiency of Australian hotels are the number of years in business, location, star rating and physical size. The implications of the results are discussed.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:toueco:v:17:y:2011:i:1:p:73-89
    DOI: 10.5367/te.2011.0027
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    References listed on IDEAS

    as
    1. Enrico Santarelli, 1998. "Start-up size and post-entry performance: the case of tourism services in Italy," Applied Economics, Taylor & Francis Journals, vol. 30(2), pages 157-163, February.
    2. David Good & M. Nadiri & Lars-Hendrik Röller & Robin Sickles, 1993. "Efficiency and productivity growth comparisons of European and U.S. Air carriers: A first look at the data," Journal of Productivity Analysis, Springer, vol. 4(1), pages 115-125, June.
    3. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
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