Measuring efficiency in the hotel sector

This study discusses, by means of data envelopment analysis, the efficiency of individual hotels belonging to the Portuguese state-owned chain, Pousadas de Portugal, which is managed by the enterprise, ENATUR. The use of this technique for the analysis of intrachain comparative hotel efficiency can be of value in examining the competitiveness of the chain as a whole. By identifying the efficient hotels in a sample, the slacks in inputs and outputs of the inefficient hotels and the peer group of efficient hotels, the data envelopment analysis stands out as one of the most promising techniques to aid the improvement of efficiency. Managerial implications arising from this study are also considered. (c) 2005 Elsevier Ltd. All rights reserved.