Managerial efficiency and hospitality industry: the Portuguese case

Abstract

In this article, the innovative twostage procedure of Simar and Wilson (2007) is used to estimate the efficiency determinants of Portuguese hotel groups from 1998 to 2005. In the first stage, the hotels' technical efficiency is estimated with Data Envelopment Analysis (DEA), in order to establish which hotels have the most efficient performance. These could serve as peers to help improve performance of the least efficient hotels. In the second stage, the Simar and Wilson model is used to bootstrap the DEA scores with a truncated regression. The article contributes to the hotel industry literature by adopting a somewhat novel approach that has never been applied to this industry despite its managerial implications. The motivation for the analysis lies in the fact that during the period under analysis Portuguese hotels faced a number of threats. Knowing what the best practices are is then good news for managers and institutions.

Performance evaluation of the hotel industry in an emerging tourism destination: The case of Oman

“…Under the assumption that the distribution of efficiency is truncated normally with a mean of zero, Barros and Dieke (2008) examine the determinants of efficiency of African hotels. More recently, the truncated regression is applied with a bootstrapping procedure in Barros et al (2011), Chen et al (2010, Tundis, Corsino, and Zaninotto (2012), Fang (2013), Hu, Yeh, and Tsai (2014) and Hathroubi, Peypoch, and Robinot (2014). More extensive reviews and references can be found in, e.g., Manasakis, Apostolakis, and Datseris (2013) and Fang (2013).…”

“…This study uses a two-stage approach (Barros, Botti, Peypoch, & Solonandrasana, 2011;Shang, Wang, & Hung, 2010). The approach starts with a Data Envelopment Analysis (DEA) evaluation of the hotels' technical efficiencies, followed by a statistical regression of the efficiency scores over a set of contextual factors.…”

An application of the double-bootstrap data envelopment analysis to investigate sources of efficiency in the Greek poultry sector

“…Theory states that companies forming a group gain additional benefits in terms of efficiency, by exploitation of economies of scope, attainment of market power, using the same brand name to promote multiple products, or by transfer of knowledge between companies and applying internal benchmarking (Barros et al, 2009;Assaf et al, 2011). Therefore, a positive correlation between the dummy variable of group ownership and technical efficiency of poultry companies is expected to be confirmed (H8).…”

Analysis of the efficiency of golf tourism via the Internet. Application to the Mediterranean countries

“…Another group of papers study the performance of hotels Lee, Kao, & Nugroho, 2009;Scholochow, Fuchs, & Höpken, 2010;Shang, Wang, & Hung, 2009) or hotel chains (Botti, Briec, & Cliquet, 2009;Neves & Lourenço, 2009;Perrigot, 2009). Other papers have analysed the hotel sector in particular countries, such as Portugal (Barros, Botti, Peypoch, & Solonandrasana, 2009), Angola (Barros, Dieke, & Santos, 2010), Slovenia (Assaf & Cvelbar, 2010), Italy (Pulina, Detottoa, & Pabaa, 2010), and Taiwan (Hsieh & Lin, 2010;Hu, Shieh, Huanga, & Chiua, 2009;Wu 2009;Yu & Lee, 2009).…”