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Hotel Chain Performance: A Gravity-DEA Approach

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Abstract

Generally speaking, competitiveness is a comparative concept of the ability and performance of a firm, sub-sector or country to sell and supply goods and/or services in a given market. At an operational level, instead, competitiveness is viewed in terms of the size of the market share secured by the firm, sub-sector or country considered. Moreover, in an operational context, while identifying that efficiency is a vital factor in competitive markets, it should also be acknowledged that it is, by itself, an insufficient determinant of competitiveness. Indeed, while competitiveness has more to do with “pursuing the correct strategy” towards the conservation and/or increase of the market share, operational efficiency is mainly a measure of how well the firm, sub-sector or country under study processes inputs to achieve its outputs, as compared to its maximum potential for doing so as represented by its production possibility frontier.

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Notes

  1. 1.

    For a review of the theoretical developments and applications of the Malmquist index see Fare et al. (1994) and Shephard (1953).

  2. 2.

    The complete set of results of the standard and augmented GMM estimator and the other econometrics are available from the authors upon request.

  3. 3.

    The number of hotels in the chain respects the DEA convention by which the minimum number of DMUs must be greater than three times the sum of the number of inputs and outputs (Raab and Lichty 2002).

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Authors and Affiliations

  1. Faculty of Economics, University of Palermo, Palermo, Italy

    Valerio Lacagnina & Davide Provenzano

Authors
  1. Valerio Lacagnina
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  2. Davide Provenzano
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Corresponding author

Correspondence to Valerio Lacagnina .

Editor information

Editors and Affiliations

  1. School of Economics and Business, Universidade Lusíada de Lisboa, Rua da Junqueira 188-198, Lisboa, 1349-001, Portugal

    Álvaro Matias

  2. Faculty of Economics, and Business Administration, Free University, De Boelelaan 1105, Amsterdam, 1081 HV, Netherlands

    Peter Nijkamp

  3. School of Economics and Business, Head of the Tourism Department, Universidade Lusíada de Lisboa, Rua da Junqueira 188-198, Lisboa, 1349-001, Portugal

    Manuela Sarmento

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Lacagnina, V., Provenzano, D. (2011). Hotel Chain Performance: A Gravity-DEA Approach. In: Matias, Á., Nijkamp, P., Sarmento, M. (eds) Tourism Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2725-5_11

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