Key Performance Indicators and Data Envelopment Analysis in Greek Tourism: A Strategic Planning Tool for Destinations and DMMOs

Abstract

Over the years, the tourism sector has constantly been a driving force in strengthening the Greek economy. Therefore, being capable of leveraging a tourism business’s performance can be of great importance in many aspects for destinations and destination management and marketing organizations (DMMOs). For this very purpose, this study’s methodology consists of a combined application of the key performance indicators and data envelopment analysis. The research conducted is quantitative, aiming to analyze the efficiency of the Greek hotels by region and determine the effective ones, as well as the strategic and managerial changes which should be considered by the non-effective. As a result, it shall become possible for each set of hotels to know the ideal turnover and the tourism nights spent that they should achieve, based on their current capacity in terms of beds and employees. Ultimately, this process could play a pivotal role in a region’s strategic planning, both from a resource management perspective, as well as in establishing an effective, measurable strategy that can be implemented by regional policy makers and destination managers in a real-time benchmarking process.