Title: Evaluating operating and profitability efficiencies of hotel companies

Authors: Xun Xu

Addresses: Department of Management, Operations, and Marketing, College of Business Administration, California State University, Stanislaus, One University Circle, Turlock, CA, 95382, USA

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.

Keywords: operating efficiency; profitability efficiency; hotel industry.

DOI: 10.1504/IJIDS.2017.088108

International Journal of Information and Decision Sciences, 2017 Vol.9 No.4, pp.315 - 333

Received: 24 Dec 2015
Accepted: 24 Mar 2016

Published online: 24 Nov 2017 *

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