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Abstract

The hotel industry has experienced changes brought on by growth, customer expectations, and the proliferation in the use of e-commerce and online distribution channels. Future hotel success depends on how effectively hotel revenue managers are able to manage different booking channels to maximize hotel revenue. A Data Envelopment Analysis–Balanced Scorecard (DEA-BSC) model to measure efficiency of distribution channel mix using BSC results is presented. DEA-BSC was used because DEA-BSC incorporates multiple metrics simultaneously while traditional business models typically focus on one performance measure such as profit. Inputs for the model include the five distribution channels of C-Res/Voice, GDS, Brand.com, OTAs, and property/relationship sales. Output is the consolidated BSC average. The model was tested and results presented, demonstrating support for the usefulness of the model.

Keywords

hotel revenue management hotel distribution channels Balanced Scorecard BSC Data Envelopment Analysis

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Measuring Hotel Channel Mix: A DEA-BSC Model

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