Efficiency evaluation of hotel operations in Mainland China based on the superefficiency SBM model

Abstract

This research evaluated the efficiency of hotels in 31 provinces and 4 regions (Eastern, Western, Central, and Northeastern China) using the superefficiency slacks-based measure model. The reasons for operational inefficiency were assessed from two perspectives: input redundancy and output shortfalls. Most hotels were found to have operational inefficiencies, and there is a significant scope for future improvement. The relative efficiency of hotel operations by the four regions was as follows: Eastern China > Central China > Western China > Northeastern China. The efficiency of hotels demonstrated differing coefficients of variation. The most significant coefficient of variation was for Western China, and the smallest was for Northeastern China. The primary cause of inefficiencies was in input redundancies, especially the high degree of input redundancy in number of hotels, employees, and rooms. Also, to some degree, differences exist among the four regions in operational inefficiencies.