Efficiency Measurement in the Hotel Industry: Output Factor Constrained DEA Application

Abstract

ABSTRACT The purpose of this study is to measure efficiency of hotels using Data Envelopment Analysis (DEA) and to assess the applicability of the DEA technique as a performance measurement tool in the tourism industry. In this framework, the DEA model has been used in efficiency analysis with an upper limit constraint on output factor values. The scope of this study has been limited to 4- and 5-star hotels in the Turkish Riviera—Antalya. The efficiency scores obtained from the DEA indicate that 4-star hotels are more efficient than 5-star hotels.