Monitoring performance indicators in the Portuguese hospitality sector

Abstract

PurposeThis article aims to analyze performance evaluation in the Portuguese hospitality sector. It assesses the frequency with which performance indicators are monitored, the relevance assigned to them and how the two are related. It further evaluates whether performance evaluation practices in the Portuguese hospitality sector are based on the balanced scorecard (BSC) philosophy.Design/methodology/approachThe study builds upon a doctoral research addressing the hospitality sector in Portugal. Theoretically, it resorts to a literature review on performance indicators and the Portuguese hospitality sector. Empirically, it looks at a sample of four- and five-star hotels operating in Portugal in 2012. A questionnaire addressing the four perspectives of BSC was applied, and a descriptive analysis was developed.FindingsPerformance indicators cover the four perspectives of BSC in a balanced way, which confirms its relevance as a strategic management tool. However, there is no coincidence between the performance indicators most frequently monitored and those considered to be most relevant.Practical implicationsThe study reviews/identifies performance indicators suitable for the hospitality sector and highlights ways to improve their use in the Portuguese hospitality sector.Social implicationsRedirecting the use of performance indicators to long-term objectives will benefit the financial results of the hospitality industry, with positive impacts on employment. This is particularly relevant as the hospitality industry is an activity strongly characterized by seasonality.Originality/valueThis is a descriptive study related to the use of indicators in the Portuguese hotel sector, to this date inexistent/innovative. It highlights the need for changes in the choice of performance indicators in the Portuguese hospitality sector and offers suggestions for future performance evaluation frameworks.