Analysis on the Business Efficiency of Star-rated Hotels in Hubei Province Based on DEA-Malmquist Model

Abstract

This paper has constructed DEA-Malmquist index model and empirically analyzed the business efficiency of star-rated hotels in Hubei Province from 2010 to 2017. The conclusions are as follows: the DEA of star-rated hotels in Wuhan City and Qianjiang City is effective, and their starrated hotels operate best; the investment scale of star-rated hotels in Hubei Province is basically moderate; but in order to improve the comprehensive efficiency, it is needed to attach importance to enhancing the management level and innovating the management system; the total factor productivity index in all cities (autonomous prefectures) fluctuates significantly, which is mainly affected by the technological progress change index. Therefore, the application of high and new technology should be vigorously promoted. Keywords—star-rated hotels; business efficiency; DEA; Malmquist index