Efficiency evaluation of hotel operations in Mainland China based on the superefficiency SBM model

Abstract

This research evaluated the efficiency of hotels in 31 provinces and 4 regions (Eastern, Western, Central, and Northeastern China) using the superefficiency slacks-based measure model. The reasons for operational inefficiency were assessed from two perspectives: input redundancy and output shortfalls. Most hotels were found to have operational inefficiencies, and there is a significant scope for future improvement. The relative efficiency of hotel operations by the four regions was as follows: Eastern China > Central China > Western China > Northeastern China. The efficiency of hotels demonstrated differing coefficients of variation. The most significant coefficient of variation was for Western China, and the smallest was for Northeastern China. The primary cause of inefficiencies was in input redundancies, especially the high degree of input redundancy in number of hotels, employees, and rooms. Also, to some degree, differences exist among the four regions in operational inefficiencies.

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“…Based on probability distribution and earth mover's distance, Xia et al [69] studied a novel technique for automatically evaluating the competitiveness of hotel brands. Deng et al [70] evaluated the efficiency of hotels by the superefficient slacksbased measure model in China. Ullah et al [71] used some selected factors (specifically hotel rating, rental price, location, and quality of services) to study an evaluation model with online hotel booking for customer satisfaction.…”

“…Sustainability 2021, 13, x FOR PEER REVIEW 5 of 25 brands. Deng et al [70] evaluated the efficiency of hotels by the superefficient slacks-based measure model in China. Ullah et al [71] used some selected factors (specifically hotel rating, rental price, location, and quality of services) to study an evaluation model with online hotel booking for customer satisfaction.…”

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“…Notably, the SE method has significance for discriminating among efficient DMUs. See also Nayebi and Lotfi (2016) and Deng et al (2018) for further applications of the SE method. Guo et al (2017) and Tran et al (2019) develop an integrated model for slacks-based measure simultaneously of both the efficiency and the SE for DMUs.…”