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Productivity in hotels: a stepwise data envelopment analysis of hotels' rooms division processes

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  • Marianna Sigala
  • Peter Jones
  • Andrew Lockwood
  • David Airey

Abstract

Low productivity within service industries has been a major concern, but this situation is unlikely to improve without a general change in the way productivity is measured and managed. This paper aims to illustrate the value of stepwise data envelopment analysis (DEA) for measuring and benchmarking productivity. The issues and problems regarding productivity measurement as well as the advantages of using DEA in productivity measurement are analysed. The article extends current DEA applications by developing a stepwise approach to DEA. The latter technique combines correlation and DEA analysis for developing robust models and sound productivity measurement. The advantages of the proposed methodology are illustrated by applying it to a dataset of three-star hotels in the UK. Six inputs and three outputs are identified as the factors affecting rooms division efficiency in three star hotels.

Suggested Citation

  • Marianna Sigala & Peter Jones & Andrew Lockwood & David Airey, 2005. "Productivity in hotels: a stepwise data envelopment analysis of hotels' rooms division processes," The Service Industries Journal, Taylor & Francis Journals, vol. 25(1), pages 61-81, January.
    • Handle: RePEc:taf:servic:v:25:y:2005:i:1:p:61-81
    DOI: 10.1080/0264206042000302414
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    Cited by:

    1. Jeroen Klijs & Jack Peerlings & Wim Heijman, 2017. "Introducing labour productivity changes into models used for economic impact analysis in tourism," Tourism Economics, , vol. 23(3), pages 561-576, May.
    2. 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.
    3. Huang, Chin-wei & Ho, Foo Nin & Chiu, Yung-ho, 2014. "Measurement of tourist hotels׳ productive efficiency, occupancy, and catering service effectiveness using a modified two-stage DEA model in Taiwan," Omega, Elsevier, vol. 48(C), pages 49-59.
    4. Fuentes, Ramón, 2011. "Efficiency of travel agencies: A case study of Alicante, Spain," Tourism Management, Elsevier, vol. 32(1), pages 75-87.
    5. Camelia Surugiu & Marius-Razvan Surugiu & Ana-Irina Dinca & Cristi Frent, 2012. "Labour Productivity and Investments as Determinants of Wages: A Pool Data Analysis of the Romanian Hotel and Restaurant Sector," Tourism Economics, , vol. 18(1), pages 219-242, February.
    6. Panayiotis Curtis & Michael Hanias & Eleftherios Kourtis & Michael Kourtis, 2021. "Financial Performance Assessment οf Strategy for Building Resilience and Readiness in the Hotel Sector of Greece," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(2), pages 3-27.
    7. Riera Font, Antoni & Ripoll Penalva, Aina M. & Juaneda Sampol, Catalina N., 2011. "Efficiency and Seasonality in the Balearic Hospitality Industry/Eficiencia y estacionalidad en la industria hotelera balear," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 845-862, Diciembre.
    8. Ricardo Oliveira & Maria Isabel Pedro & Rui Cunha Marques, 2014. "Cost Efficiency of Portuguese Hotels in the Algarve: A Comparative Analysis Using Mathematical and Econometric Approaches," Tourism Economics, , vol. 20(4), pages 797-812, August.
    9. Yung-ho Chiu & Chin-wei Huang & Chung-te Ting, 2012. "A non-radial measure of different systems for Taiwanese tourist hotels’ efficiency assessment," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(1), pages 45-63, March.

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