This paper presents a new methodology for analysing efficiency and productivity in the tourism industry in an aggregate context. More precisely, by using the directional distance function, an aggregate Luenberger productivity indicator for a group of tourist firms is proposed. Moreover, the possibility of the reallocation of inputs and outputs between the individual tourist firms in the group is considered. Finally, this new performance measure is illustrated by considering a group of hotels.
AndersonR.I.FishM.XiaY.MichelloF. (1999a), ‘Measuring efficiency in the hotel industry: A stochastic frontier approach’, International Journal of Hospitality Management, Vol 18, pp 45–57.
2.
AndersonR.I.LewisD.ParkerM.E. (1999b), ‘Another look at the efficiency of corporate travel management departments’, Journal of Travel Research, Vol 37, pp 267–272.
3.
AndersonR.I.FokR.ScottJ. (2000), ‘Hotel industry efficiency: An advanced linear programming examination’, American Business Review, Vol 18, pp 40–48.
4.
BankerR.D.MaindirattaA. (1988), ‘Non-parametric analysis of technical and allocative efficiency in production’, Econometrica, Vol 56, pp 1315–1332.
5.
BarrosC.P. (2004), ‘A stochastic cost frontier in the Portuguese hotel industry’, Tourism Economics, Vol 10, pp 177–192.
6.
BarrosC.P. (2005a), ‘Evaluating the efficiency of a small hotel chain with a Malmquist productivity index’, International Journal of Tourism Research, Vol 7, pp 173–184.
7.
BarrosC.P. (2005b), ‘Measuring efficiency in the hotel sector’, Annals of Tourism Research, Vol 32, pp 456–477.
8.
BarrosC.P.AlvesF.P. (2004), ‘Productivity in the tourism industry’, International Advances in Economic Research, Vol 10, pp 215–225.
9.
BarrosC.P.DiekeP. (2007), ‘Analyzing the total productivity change in travel agencies’, Tourism Analysis, Vol 12, pp 27–37.
10.
BarrosC.P.MascarenhasM.J. (2005), ‘Technical and allocative efficiency in a chain of small hotels’, International Journal of Hospitality Management, Vol 24, pp 415–436.
11.
BarrosC.P.MatiasA. (2006), ‘Assessing the efficiency of travel agencies with a stochastic cost frontier: A Portuguese case study’, International Journal of Tourism Research, Vol 8, pp 367–379.
12.
BarrosC.P.MatiasA. (2007), ‘Efficiency in a chain of small hotels with a stochastic production frontier model’, in MatiasA.NijkampP.NetoP., eds, Advances in Modern Tourism Research Economic Perspectives, Physica-Verlag Heidelberg, New York, pp 107–129.
13.
BarrosC.P.SantosC. (2006), ‘The measurement of efficiency in Portuguese hotels with DEA’, Journal of Hospitality and Tourism Research, Vol 30, pp 378–400.
14.
BaumT.LundtorpS. (2001), Seasonality in Tourism, Pergamon, Oxford.
15.
BellR.A.MoreyR.C. (1995), ‘Increasing the efficiency of corporate travel management through macro benchmarking’, Journal of Travel Research, Vol 33, pp 11–20.
16.
BlackorbyC.RussellR. (1999), ‘Aggregation of efficiency indices’, Journal of Productivity Analysis, Vol 12, pp 5–20.
17.
BoussemartJ.-P.BriecW.KerstensK.PoutineauJ.-C. (2003), ‘Luenberger and Malmquist productivity indices: Theoretical comparisons and empirical illustration’, Bulletin of Economic Research, Vol 55, pp 391–405.
18.
BriecW. (1995), Une nouvelle approche de la mesure de l'efficacité productive, PhD thesis, GREQAM/Ecole des Hautes Etudes en Sciences Sociales, Aix-Marseille.
19.
BriecW. (1997), ‘A graph type extension of Farrell technical efficiency measure’, Journal of Productivity Analysis, Vol 8, pp 95–110.
20.
BriecW.KerstensK. (2004), ‘A Luenberger–Hicks–Moorsteen productivity indicator: Its relation to the Hicks–Moorsteen productivity index and the Luenberger productivity indicator’, Economic Theory, Vol 23, pp 925–939.
21.
BriecW.PeypochN. (2004), ‘An aggregate productivity index and its virtual price correspondence’, GEREM Working Paper, No 13-F/2003.
22.
BriecW.DervauxB.LeleuH. (2003), ‘Aggregation of directional distance functions and industrial efficiency’, Journal of Economics, Vol 79, pp 237–261.
23.
BrownJ.R.RagsdaleC.T. (2002), ‘The competitive market efficiency of hotel brands: An application of data envelopment analysis’, Journal of Hospitality and Tourism Research, Vol 26, pp 332–360.
24.
ChambersR.G. (1996), ‘A new look at exact input, output, and productivity measurement’, Department of Agricultural and Resource Economics, Working Paper 96–05.
25.
ChambersR.G. (1998), ‘The structure of multiplant technologies’, American Journal of Agricultural Economics, Vol 4, pp 839–851.
26.
ChambersR.G.ChungY.FäreR. (1996), ‘Benefit and distance functions’, Journal of Economic Theory, Vol 70, pp 407–419.
27.
ChambersR.G.ChungY.FäreR. (1998), ‘Profit, directional distance functions, and Nerlovian efficiency’, Journal of Optimization Theory and Applications, Vol 98, pp 351–364.
28.
ChiangW.E.TsaiM.H.WangL.S.M. (2004), ‘A DEA evaluation of Taipei hotels’, Annals of Tourism Research, Vol 31, pp 712–715.
29.
CracoliciM.F.NijkampP.CuffaroM. (2007), ‘Efficiency and productivity of Italian tourist destinations: A quantitative estimation based on data envelopment analysis and the Malmquist method’, in MatiasA.NijkampP.NetoP., eds, Advances in Modern Tourism Research Economic Perspectives, Physica-Verlag, Heidelberg, New York, pp 325–344.
FäreR.GrosskopfS. (2004), New Directions: Efficiency and Productivity, Klüwer Academic Publishers, Boston, MA.
32.
FäreR.LovellC.A.K. (1978), ‘Measuring the technical efficiency of production’, Journal of Economic Theory, Vol 19, pp 150–162.
33.
FäreR.PrimontD. (2003), ‘Luenberger productivity indicator: Aggregation across firms’, Journal of Productivity Analysis, Vol 20, pp 425–435.
34.
FäreR.GrosskopfS.LovellC.A.K. (1985), The Measurement of Efficiency of Production, Klüwer Academic Publisher, Boston, MA.
35.
FäreR.GrosskopkS.LindgrenB.RoosP. (1994), ‘Productivity developments in Swedish hospitals: A Malmquist output index approach’, in CharnesA.CooperW.LewinA.SeifordL., eds, Data Envelopment Analysis: Theory, Methodology and Applications, Kluwer Academic Publishers, Boston, MA. [Originally presented at a conference on new uses of DEA in management and public policy, 27–29 September 1989, University of Texas, Austin, TX.]
36.
FarrellM.J. (1957), ‘The measurement of productive efficiency’, Journal of the Royal Statistical Society, Vol 120, pp 253–281.
37.
HuB.A.CaiL.A. (2004), ‘Hotel labor productivity assessment: A data envelopment analysis’, Journal of Travel and Tourism Marketing, Vol 16, pp 27–38.
38.
HwangS.N.ChangT.Y. (2003), ‘Using data envelopment analysis to measure hotel managerial efficiency change in Taiwan’, Tourism Management, Vol 24, pp 357–369.
39.
JohnsN.HowcroftB.DrakeL. (1997), ‘The use of data envelopment analysis to monitor hotel productivity’, Progress in Tourism and Hospitality Research, Vol 3, pp 119–127.
40.
LuenbergerD.G. (1996), ‘Welfare from a benefit viewpoint’, Economic Theory, Vol 7, pp 445–462.
41.
MoreyR.C.DittmanD.A. (1995), ‘Evaluating a hotel GM's performance: A case study in benchmarking’, The Cornell Hotel and Restaurant Administration Quarterly, Vol 36, pp 30–35.
42.
NarayanP.K. (2005), ‘The structure of tourist expenditure in Fiji: Evidence from unit root structural break tests’, Applied Economics, Vol 31, pp 1157–1161.
Pérez-RodríguezJ.V.Acosta-GonzálezE. (2007), ‘Cost efficiency of the lodging industry in the tourist destination of Gran Canaria (Spain)’, Tourism Management, Vol 28, pp 993–1005.
45.
PeypochN. (2007), ‘On measuring tourism productivity’, Asia Pacific Journal of Tourism Research, Vol 12, pp 237–244.
ReynoldsD. (2003), ‘Hospitality-productivity assessment using data-envelopment analysis’, The Cornell Hotel and Restaurant Administration Quarterly, Vol 44, pp 130–137.
48.
ReynoldsD. (2004), ‘An exploratory investigation of multi-unit restaurant productivity assessment using data envelopment analysis’, Journal of Travel and Tourism Marketing, Vol 16, pp 19–26.
49.
SantosC.DiekeP.BarrosC.P. (2007), ‘Efficiency on African hotels: A case study on Luanda-Angola’, Tourism Review International, forthcoming.
50.
ShephardR.W. (1953), Cost and Production Function, Princeton University Press, Princeton, NJ.
51.
ShephardR.W. (1970), Theory of Cost and Production Function, Princeton University Press, Princeton, NJ.
52.
SigalaM. (2004), ‘Using data envelopment analysis for measuring and benchmarking productivity in the hotel sector’, Journal of Travel and Tourism Marketing, Vol 16, pp 39–60.
53.
VarianH.R. (1984), ‘The non-parametric approach to production analysis’, Econometrica, Vol 52, pp 579–597.
54.
WöberK.W.FesenmaierD.R. (2004), ‘A multi-criteria approach to destination benchmarking: A case study of state tourism advertising programs in the United States’, Journal of Travel and Tourism Marketing, Vol 16, pp 1–18.
