Measuring Hotel Performance Using Data Envelopment Analysis

Measuring performance is a means for firms to improve their existing positions in today's highly competitive environment. Resort hotel industry has become a significant area of interest as holiday and leisure trips turned out to be the main purpose of international travel in recent years. This article is based on a study which measures the performance of resort hotels by technical efficiency. The dataset covers almost 15 percent of the total capacity of 4 and 5 star hotels located in the main coastal cities of Turkey. This study modifies revenue per available room (RevPAR) indicator to make it applicable for "all inclusive" resort hotels. The study, by means of data envelopment analysis (DEA), indicated that particularly the number of rooms, star categories, and food & beverage cost per room sold were important factors in efficiency differences among resort hotels.