Parametric and non‐parametric measurement of efficiency in hotel industry: A systematic literature review

Abstract

AbstractThis paper conducts an extensive systematic literature review on the measurement of efficiency in the hotel sector, which is the cornerstone of tourism. Thus, scrutinizing its performance measurement is vital for the advancement and strategic development of the sector. Exploiting the Scopus database, the paper offers a unique methodology for documenting sample transparency and selection objectivity and can constitute an example for future literature reviews. A range of articles is assessed to discern prevailing trends, key authors, and influential journals. A division of parametric and non‐parametric nature, various efficiency measurement methodologies, the input and output variables, geographical covering as well as various other metrics and benchmarks have been included. The study reveals a predominant focus on technical efficiency and commonly employed input variables such as the number of hotel rooms and employees. The paper suggests future research directions, advocating for a broader exploration of efficiency dimensions, including profit and cost aspects, the integration of emerging variables like digitalization and environmental factors and the use of larger samples. This study provides a comprehensive overview beneficial for academics, industry practitioners, and policymakers, synthesizing a clear orientation in the subject and indicating critical research routes for advancing the field's understanding and practical applications.