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A Global Benchmarking of the Hotel Industry

Author

Listed:
  • A. George Assaf

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

  • Carlos Pestana Barros

    (Instituto Superior de Economia e Gestão, Technical University of Lisbon, Rua Miguel Lupi, 1249–078 Lisbon, Portugal)

Abstract

This paper presents an efficiency analysis of some of the leading hotel companies around the world. The authors estimate efficiency with the stochastic frontier semi-parametric approach, which is unique in the hotel context and has several advantages over other traditional methodologies used in the hotel literature. The results, derived from a sample of 37 countries, indicate that the most efficient hotel companies operate in Switzerland, the UK, Spain and the UAE, while the least efficient hotel chains operate in Croatia, Slovakia and Kenya. On a regional basis, the hotel industries in the USA and Europe seem to enjoy the highest efficiency, followed by the Middle East, South America and Africa. Finally, we show that international hotel chains are more efficient than national hotel chains or hotels that are independently owned.

Suggested Citation

  • A. George Assaf & Carlos Pestana Barros, 2013. "A Global Benchmarking of the Hotel Industry," Tourism Economics, , vol. 19(4), pages 811-821, August.
    • Handle: RePEc:sae:toueco:v:19:y:2013:i:4:p:811-821
    DOI: 10.5367/te.2013.0230
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    References listed on IDEAS

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    1. Koop, Gary & Osiewalski, Jacek & Steel, Mark F. J., 1997. "Bayesian efficiency analysis through individual effects: Hospital cost frontiers," Journal of Econometrics, Elsevier, vol. 76(1-2), pages 77-105.
    2. 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.
    3. Barros, Carlos Pestana & Managi, Shunsuke & Matousek, Roman, 2012. "The technical efficiency of the Japanese banks: Non-radial directional performance measurement with undesirable output," Omega, Elsevier, vol. 40(1), pages 1-8, January.
    4. Paradi, Joseph C. & Rouatt, Stephen & Zhu, Haiyan, 2011. "Two-stage evaluation of bank branch efficiency using data envelopment analysis," Omega, Elsevier, vol. 39(1), pages 99-109, January.
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    Cited by:

    1. Jane Nyokabi & Maina Muchara & Juliana Namada, 2019. "Focus strategy-firm structure fit and performance of star rated hotels in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(5), pages 11-17, September.
    2. Yaguo Deng & Helena Veiga & Michael P. Wiper, 2019. "Efficiency evaluation of hotel chains: a Spanish case study," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 10(2), pages 115-139, June.
    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.
    4. A. George Assaf & Alexander Josiassen & Haemoon Oh, 2016. "Internationalization and hotel performance," Tourism Economics, , vol. 22(3), pages 572-592, June.
    5. Federico Inchausti-Sintes & Ubay Pérez-Granja & José Juan Morales-Mohamed, 2021. "Analysing labour productivity and its economic consequences in the two Spanish tourist archipelagos," Tourism Economics, , vol. 27(5), pages 1039-1059, August.
    6. Tanja Planinc & Marko Kukanja & Saša Planinc, 2018. "Classification and Efficiency Analysis of Slovenian Restaurant SMEs," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 11(1), pages 31-42.
    7. Cortés-García, J. Salvador & Pérez-Rodríguez, Jorge V., 2024. "Heterogeneity and time-varying efficiency in the Ecuadorian banking sector. An output distance stochastic frontier approach," The Quarterly Review of Economics and Finance, Elsevier, vol. 93(C), pages 164-175.

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