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Measuring efficiency of the hotel and restaurant sector: the case of India

Measuring efficiency of the hotel and restaurant sector: the case of India Purpose – The purpose of this research is to provide exploratory insights on measurement of efficiency of the hotel and restaurant companies operating in India. Design/methodology/approach – This study will use a linear programming‐based approach, data envelopment analysis (DEA), to evaluate the efficiency of hotel and restaurant companies operating in India. DEA is a method of evaluating the relative efficiency of decision‐making units (DMUs). In this study the decision‐making units are the hotel and restaurant companies. The study further explores if there exists a relationship between the efficiency and size of the hotel and restaurant companies. Findings – The DEA model used in this study assigns efficiency scores to each of the hotel and restaurant companies taken in the sample of 68 companies for the year 2004‐2005. The study also explores whether there is a relationship between the efficiency and size of the hotel and restaurant companies. Practical implications – As this study evaluates the efficiency of the hotel and restaurant sector, it separates the most efficient hotel and restaurant companies from the non‐efficient ones. The study identifies the top performers in this sector. Also, managers get important insights for their strategic and operational decisions to improve performance. Originality/value – There are very few known studies that have measured the efficiency of the hotel and restaurant companies. This study is one of the few exploratory initiatives in the Indian context. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Contemporary Hospitality Management Emerald Publishing

Measuring efficiency of the hotel and restaurant sector: the case of India

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Publisher
Emerald Publishing
Copyright
Copyright © 2007 Emerald Group Publishing Limited. All rights reserved.
ISSN
0959-6119
DOI
10.1108/09596110710757543
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this research is to provide exploratory insights on measurement of efficiency of the hotel and restaurant companies operating in India. Design/methodology/approach – This study will use a linear programming‐based approach, data envelopment analysis (DEA), to evaluate the efficiency of hotel and restaurant companies operating in India. DEA is a method of evaluating the relative efficiency of decision‐making units (DMUs). In this study the decision‐making units are the hotel and restaurant companies. The study further explores if there exists a relationship between the efficiency and size of the hotel and restaurant companies. Findings – The DEA model used in this study assigns efficiency scores to each of the hotel and restaurant companies taken in the sample of 68 companies for the year 2004‐2005. The study also explores whether there is a relationship between the efficiency and size of the hotel and restaurant companies. Practical implications – As this study evaluates the efficiency of the hotel and restaurant sector, it separates the most efficient hotel and restaurant companies from the non‐efficient ones. The study identifies the top performers in this sector. Also, managers get important insights for their strategic and operational decisions to improve performance. Originality/value – There are very few known studies that have measured the efficiency of the hotel and restaurant companies. This study is one of the few exploratory initiatives in the Indian context.

Journal

International Journal of Contemporary Hospitality ManagementEmerald Publishing

Published: Jul 17, 2007

Keywords: Process efficiency; Data analysis; Hotel and catering industry; Restaurants; India

References