Evaluating operating and profitability efficiencies of hotel companies
by Xun Xu
International Journal of Information and Decision Sciences (IJIDS), Vol. 9, No. 4, 2017

Abstract: The study of supply side of the hotel sector is rare although hotels play an important role in generating revenues in tourism industry, which has a large contribution on global economic growth. This study fills the supply-side literature gap through discussing the operating and profitability efficiencies of US listed hotel companies in the recent five years through a data envelopment analysis (DEA) approach. Hotels are categorised into four groups according to the stability and trend of their operating and profitability efficiencies in this five-year period. Findings suggest that hotels' operating efficiency and profitability efficiency are highly correlated. Implications for improving hotels' operating and profitability efficiencies are provided.

Online publication date: Fri, 24-Nov-2017

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