Performance evaluation of hotels by data envelopment analysis based on customers' perception and gap analysis

Abstract

The aim of this paper is to evaluate three, four and five-star hotels and to identify the most critical service quality dimensions in these hotels. This study applies the principle behind the SERVQUAL and performance methods to measure service quality of hotels. Yet, data envelopment analysis approach is exploited to evaluate the efficiency of hotels. Through identification of five SQDs and use of five-point Likert scale, two questionnaires containing 22 items were developed. The former questionnaire measure customers’ expectations while the latter one measures customers’ perceptions form delivered services. The sample of respondents includes 45 customers which were taken from each hotel separately. The sample of respondents includes 45 customers in each hotel. Finally, a sensitivity analysis method in DEA approach and Norm-2 method is applied to address the most important service quality dimensions. The results reveal that empathy and responsiveness are the most critical factors. Four hotels were also identified efficient. However, all efficient hotels do not have necessarily the best customers’ perceptions or the lowest service quality gaps.