IDEAS home Printed from https://ideas.repec.org/a/spr/opsear/v61y2024i4d10.1007_s12597-024-00781-1.html
   My bibliography  Save this article

Super efficiency and sensitivity analysis of the Indian hotels and restaurants

Author

Listed:
  • Neha Sharma

    (Chandigarh University)

  • Sandeep Kumar Mogha

    (Chandigarh University)

Abstract

Over the course of COVID-19, the global growth of the hospitality and restaurant (H&Rs) sector has been declined. “Indian H&R industry has also faced the same consequences of covid-19 To emerge from this situation, industry need to employ fresh approaches to capture the untapped potential and get past the obstacles As the resources are scare so one needs to utilize these in proper manner and for this, one of the difficulties is to be figuring out how to evaluate H&Rs' efficiency using different factors and highlight the areas where improvement is required In this study performance evaluation has been done for the 45 Large scale Indian H&R businesses by applying the Data Envelopment Analysis (DEA) methodology As basic DEA models calculate radial efficiency only, they do not demonstrate the improvement in capabilities of different DMUs This paper examines the efficiency of 45 large-scale Indian H&Rs using the New Slack Model (NSM) of DEA The NSM model directly deals with the input and output slacks This study is based on data collected from Centre for Monitoring Indian Economy’s Prowess database A study found that only 65.58% of H&Rs are technically efficient. This indicates that some of the resources are underutilized, and therefore a significant amount of improvement is possible Using sensitivity analysis, the super efficiency is also tested in order to determine whether the results are stable.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:opsear:v:61:y:2024:i:4:d:10.1007_s12597-024-00781-1
    DOI: 10.1007/s12597-024-00781-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12597-024-00781-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12597-024-00781-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carlos Pestana Barros, 2006. "Analysing the Rate of Technical Change in the Portuguese Hotel Industry," Tourism Economics, , vol. 12(3), pages 325-346, September.
    2. Carlos Pestana Barros, 2004. "A Stochastic Cost Frontier in the Portuguese Hotel Industry," Tourism Economics, , vol. 10(2), pages 177-192, June.
    3. Hibiki, Norio & Sueyoshi, Toshiyuki, 1999. "DEA sensitivity analysis by changing a reference set: regional contribution to Japanese industrial development," Omega, Elsevier, vol. 27(2), pages 139-153, April.
    4. Sueyoshi, Toshiyuki & Ohnishi, Kenji & Kinase, Youichi, 1999. "A benchmark approach for baseball evaluation," European Journal of Operational Research, Elsevier, vol. 115(3), pages 429-448, June.
    5. Charnes, A. & Neralic, L., 1990. "Sensitivity analysis of the additive model in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 48(3), pages 332-341, October.
    6. Zhu, Joe, 1996. "Robustness of the efficient DMUs in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 90(3), pages 451-460, May.
    7. 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.
    8. Jahanshahloo, Gholam Reza & Junior, Helcio Vieira & Lotfi, Farhad Hosseinzadeh & Akbarian, Darush, 2007. "A new DEA ranking system based on changing the reference set," European Journal of Operational Research, Elsevier, vol. 181(1), pages 331-337, August.
    9. Alexander W. Bartik & Marianne Bertrand & Zoe Cullen & Edward L. Glaeser & Michael Luca & Christopher Stanton, 2020. "The impact of COVID-19 on small business outcomes and expectations," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 117(30), pages 17656-17666, July.
    10. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rezaeiani, M.J. & Foroughi, A.A., 2018. "Ranking efficient decision making units in data envelopment analysis based on reference frontier share," European Journal of Operational Research, Elsevier, vol. 264(2), pages 665-674.
    2. Zhu, Joe, 2001. "Super-efficiency and DEA sensitivity analysis," European Journal of Operational Research, Elsevier, vol. 129(2), pages 443-455, March.
    3. Sowlati, Taraneh & Paradi, Joseph C., 2004. "Establishing the "practical frontier" in data envelopment analysis," Omega, Elsevier, vol. 32(4), pages 261-272, August.
    4. Kuosmanen, Timo & Post, Thierry & Scholtes, Stefan, 2007. "Non-parametric tests of productive efficiency with errors-in-variables," Journal of Econometrics, Elsevier, vol. 136(1), pages 131-162, January.
    5. Sueyoshi, Toshiyuki, 1999. "DEA non-parametric ranking test and index measurement: slack-adjusted DEA and an application to Japanese agriculture cooperatives," Omega, Elsevier, vol. 27(3), pages 315-326, June.
    6. Kuosmanen, T. & Post, G.T., 2001. "Testing for Productive Efficiency with Errors-in-Variables: with an application to the Dutch electricity sesctor," ERIM Report Series Research in Management ERS-2001-22-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    7. Constantino J. Garcia Martin & Amparo Medal-Bartual & Marta Peris-Ortiz, 2014. "Analysis of efficiency and profitability of franchise services," The Service Industries Journal, Taylor & Francis Journals, vol. 34(9-10), pages 796-810, July.
    8. Ya Chen & Yongjun Li & Liang Liang & Huaqing Wu, 2019. "An extension on super slacks-based measure DEA approach," Annals of Operations Research, Springer, vol. 278(1), pages 101-121, July.
    9. Hibiki, Norio & Sueyoshi, Toshiyuki, 1999. "DEA sensitivity analysis by changing a reference set: regional contribution to Japanese industrial development," Omega, Elsevier, vol. 27(2), pages 139-153, April.
    10. 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.
    11. Boljuncic, Valter, 1999. "A note on robustness of the efficient DMUs in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 112(1), pages 240-244, January.
    12. Masahiro Inuiguchi & Fumiki Mizoshita, 2012. "Qualitative and quantitative data envelopment analysis with interval data," Annals of Operations Research, Springer, vol. 195(1), pages 189-220, May.
    13. Tsou, Chi-Ming & Huang, Deng-Yuan, 2010. "On some methods for performance ranking and correspondence analysis in the DEA context," European Journal of Operational Research, Elsevier, vol. 203(3), pages 771-783, June.
    14. Cook, Wade D. & Seiford, Larry M., 2009. "Data envelopment analysis (DEA) - Thirty years on," European Journal of Operational Research, Elsevier, vol. 192(1), pages 1-17, January.
    15. Chiu, Yung-Ho & Chen, Yu-Chuan, 2009. "The analysis of Taiwanese bank efficiency: Incorporating both external environment risk and internal risk," Economic Modelling, Elsevier, vol. 26(2), pages 456-463, March.
    16. Edelstein, Barak & Paradi, Joseph C., 2013. "Ensuring units invariant slack selection in radial data envelopment analysis models, and incorporating slacks into an overall efficiency score," Omega, Elsevier, vol. 41(1), pages 31-40.
    17. Sueyoshi, Toshiyuki & Sekitani, Kazuyuki, 2009. "An occurrence of multiple projections in DEA-based measurement of technical efficiency: Theoretical comparison among DEA models from desirable properties," European Journal of Operational Research, Elsevier, vol. 196(2), pages 764-794, July.
    18. Li, Yongjun & Xie, Jianhui & Wang, Meiqiang & Liang, Liang, 2016. "Super efficiency evaluation using a common platform on a cooperative game," European Journal of Operational Research, Elsevier, vol. 255(3), pages 884-892.
    19. Lampe, Hannes W. & Hilgers, Dennis, 2015. "Trajectories of efficiency measurement: A bibliometric analysis of DEA and SFA," European Journal of Operational Research, Elsevier, vol. 240(1), pages 1-21.
    20. Yung-Ho Chiu & Yu-Chuan Chen & Xue-Jie Bai, 2011. "Efficiency and risk in Taiwan banking: SBM super-DEA estimation," Applied Economics, Taylor & Francis Journals, vol. 43(5), pages 587-602.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:opsear:v:61:y:2024:i:4:d:10.1007_s12597-024-00781-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.