Hotel productivity: A robust Luenberger productivity indicator

The article presents a robust version of the Luenberger productivity indicator. The proposed productivity indicator is less sensitive to potential outliers and extreme values. We apply the robust productivity index on a sample of 176 hotels operating in the Canary Islands over the period from 2004 to 2013. The results indicate that hotels have increased their productivity levels over the examined time period. In relation to their productivity levels, it is also evident that hotels have demonstrated strong resilience during the global financial crisis. Finally, it is evident that hotels have been recovered quickly from the global financial crisis based mainly on the ability to increase their technological change levels.