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Change in the Managerial Efficiency and Management Technology of Hotels: An Application to Thailand

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  • Akarapong Untong
  • Mingsarn Kaosa-Ard
  • Vicente Ramos
  • Javier Rey-Maquieira

Abstract

This article estimates the change in managerial efficiency and management technology of a sample of hotels in Chiang Mai, Thailand, during 2002–2006. The study applies the data envelopment analysis (DEA) methodology proposed by Banker et al (1984) to examine managerial efficiency in 2002 and 2006. The Malmquist productivity approach developed by Färe et al (1992) is employed to evaluate the change in managerial efficiency and management technology over the same period. The results show that medium-sized and small hotels tend to be more managerially efficient than large hotels. The total factor productivity declined slightly owing to a lack of investment in management technology. Instead, the hotels in the sample concentrated on improving managerial effort. This shortfall in technology investment could hamper productivity in the longer term.

Suggested Citation

  • Akarapong Untong & Mingsarn Kaosa-Ard & Vicente Ramos & Javier Rey-Maquieira, 2011. "Change in the Managerial Efficiency and Management Technology of Hotels: An Application to Thailand," Tourism Economics, , vol. 17(3), pages 565-580, June.
    • Handle: RePEc:sae:toueco:v:17:y:2011:i:3:p:565-580
    DOI: 10.5367/te.2011.0051
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    References listed on IDEAS

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    1. 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.
    2. Carlos Pestana Barros & Manolis Athanassiou, 2004. "Efficiency in European Seaports with DEA: Evidence from Greece and Portugal," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 6(2), pages 122-140, June.
    3. 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.
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    Cited by:

    1. Chin-Yi Fang & Fu-Sung Hsu, 2012. "Meal Category Analysis: An Application of the Metafrontier Approach," Tourism Economics, , vol. 18(5), pages 1083-1095, October.
    2. 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.
    3. 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.

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