{"title":"Transient and Persistent Cost Efficiency in Hotels in the Canary Islands","authors":"J. Pérez-Rodríguez, E. Acosta-González","doi":"10.1177/10963480211032254","DOIUrl":null,"url":null,"abstract":"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.","PeriodicalId":51409,"journal":{"name":"Journal of Hospitality & Tourism Research","volume":null,"pages":null},"PeriodicalIF":4.4000,"publicationDate":"2021-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/10963480211032254","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Hospitality & Tourism Research","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1177/10963480211032254","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"HOSPITALITY, LEISURE, SPORT & TOURISM","Score":null,"Total":0}
引用次数: 2
Abstract
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.
期刊介绍:
The Journal of Hospitality & Tourism Research (JHTR) is an international scholarly research journal that publishes high-quality, refereed articles that advance the knowledge base of the hospitality and tourism field. JHTR focuses on original research, both conceptual and empirical, that clearly contributes to the theoretical development of our field. The word contribution is key. Simple applications of theories from other disciplines to a hospitality or tourism context are not encouraged unless the authors clearly state why this context significantly advances theory or knowledge. JHTR encourages research based on a variety of methods, qualitative and quantitative.