Productivity Growth and Sources of Technological Change in Travel Agencies

Abstract

This paper proposes a procedure for analysing tourism productivity. The procedure is based on the Luenberger productivity indicator for estimating and decomposing productivity change into efficiency change and technological change. The authors expand the procedure and further decompose the process of technological change to study the sources of bias within it. Therefore, a clearer and more enlightening view emerges of the productivity of travel agencies. The Portuguese travel agency sector is used as an application. Some managerial implications are developed.