Transient and Persistent Cost Efficiency in Hotels in the Canary Islands
Bibliographic Data
| ID | 21652604 |
|---|---|
| Authors | Jorge V Pérez‐Rodríguez (0000-0002-6738-9191, Universidad de Las Palmas de Gran Canaria), Eduardo Acosta-González (0000-0002-9547-8546, Universidad de Las Palmas de Gran Canaria) |
| Year | 2023 |
| Volume | 47 |
| Issue | 4 |
| Pages | 734-759 |
| Publication date | 2023-05-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Hospitality & Tourism Research (JOURNAL) |
| Journal identifiers | ISSN: 1096-3480 • E-ISSN: 1557-7554 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/10963480211032254 |
| OpenAlex | W3188481102 |
| Language | EN |
| Citations received | 3 |
| References cited | 45 |
The aim of this study is to determine the presence or otherwise of transient and/or persistent cost inefficiency in the lodging industry. To do so, we applied the method proposed by Filippini and Greene, within a stochastic frontier panel data framework. Our empirical analysis is based on data for the hotel industry in the Canary Islands (Spain), an important destination for European tourists, for the period 2002-2015. Using a stochastic translog cost frontier model, we show that the industry’s real output during the study period could have been achieved at 17% less cost if persistent (systematic) inefficiency were eliminated, and at 24% less cost in the absence of transient (nonsystematic) inefficiency. We also present evidence of factors that strongly influence hotels’ transient cost efficiency, such as the positive effects of market share (in total revenue terms) and certain management characteristics, including the degree of independence with respect to shareholders, the experience in the industry (years in business) and the number of subsidiaries
Business · Cost efficiency · Econometrics · Economics · Frontier · Industrial organization · Inefficiency · Market share · Microeconomics · Monetary economics · Panel data · Revenue · Shareholder · Stochastic frontier analysis · Subsidiary · Aviation Industry Analysis and Trends · Computer Science · Economic and Environmental Valuation · Efficiency Analysis Using DEA · Finance
Frontier production functions, technical efficiency and panel data
Reconsidering heterogeneity in panel data estimators of the stochastic frontier model
Production frontiers with cross-sectional and time-series variation in efficiency levels
On the estimation of technical inefficiency in the stochastic frontier production function model
Fixed and Random Effects in Stochastic Frontier Models
A model for technical inefficiency effects in a stochastic frontier production function for panel data
Null
Heterogeneity of Resources and Performance in the Hotel Industry
Production Frontiers and Panel Data
The measurement and sources of technical inefficiency in the Indonesian weaving industry
Measuring hotel performance
Cost efficiency of the lodging industry in the tourist destination of Gran Canaria (Spain)
| Citations per year | 1 |
|---|---|
| Citation span | 2023 - 2026 (4) |
| Highly cited | No |