An Approach Combining DEA and ANN for Hotel Performance Evaluation

2020 ◽  
Vol 12 (1) ◽  
pp. 15-29
Author(s):  
Himanshu Sharma ◽  
Gunmala Suri ◽  
Vandana Savara
Keyword(s):  
Performance Evaluation ◽  
Hospitality Industry ◽  
Data Envelopment ◽  
Future Studies ◽  
Second Stage ◽  
Long Run ◽  
Hotel Performance ◽  
Hotel Service ◽  
Input Variables ◽  
Artificial Neural Network Ann

For a hotel to succeed in the long run, it becomes vital to achieve higher profits along with increased performance. The performance evaluation of a hotel can signify its sustainable competitiveness within the hospitality industry. This article performs a two-stage study that combines data envelopment analysis (DEA) and artificial neural network (ANN) to evaluate hotel performance. The first stage to evaluate the efficiency for hotels is by using the DEA technique. The input variables considered are the number of rooms and the ratings corresponding to six aspects of a hotel (service, room, value, location, sleep quality, and cleanliness). Also, revenue per available room (RevPAR) and customer satisfaction (CS) are the output variables. The distinguishing factor of this article is that it involves the use of EWOM for performance evaluation. In the second stage, the performance of the hotels is judged by using the ANN technique. The ANN results showed that the performance of the hotels is quite good. Finally, discussions based on the results and scope for future studies are provided.

An Approach Combining DEA and ANN for Hotel Performance Evaluation

2022 ◽  
pp. 1449-1464
Author(s):  
Himanshu Sharma ◽  
Gunmala Suri ◽  
Vandana Savara
Keyword(s):  
Neural Network ◽  
Performance Evaluation ◽  
Hospitality Industry ◽  
Data Envelopment ◽  
Second Stage ◽  
Long Run ◽  
Hotel Performance ◽  
Hotel Service ◽  
Input Variables ◽  
Artificial Neural Network Ann

For a hotel to succeed in the long run, it becomes vital to achieve higher profits along with increased performance. The performance evaluation of a hotel can signify its sustainable competitiveness within the hospitality industry. This article performs a two-stage study that combines data envelopment analysis (DEA) and artificial neural network (ANN) to evaluate hotel performance. The first stage to evaluate the efficiency for hotels is by using the DEA technique. The input variables considered are the number of rooms and the ratings corresponding to six aspects of a hotel (service, room, value, location, sleep quality, and cleanliness). Also, revenue per available room (RevPAR) and customer satisfaction (CS) are the output variables. The distinguishing factor of this article is that it involves the use of EWOM for performance evaluation. In the second stage, the performance of the hotels is judged by using the ANN technique. The ANN results showed that the performance of the hotels is quite good. Finally, discussions based on the results and scope for future studies are provided.

Profitability in the hotel sector: a PLS approach

2018 ◽  
Vol 9 (3) ◽  
pp. 455-470 ◽  
Author(s):  
Rubén Lado-Sestayo ◽  
Milagros Vivel-Búa
Keyword(s):  
Tourist Destination ◽  
Content Type ◽  
Clustering Techniques ◽  
Future Studies ◽  
Second Stage ◽  
Competitive Environments ◽  
Hotel Performance ◽  
Path Modelling ◽  
Hotel Sector ◽  
New Evidence

Purpose The purpose of this paper is to analyse the determinants of hotel profitability through the application of a least squares path modelling (PLS) and to deepen the study of their heterogeneity through clustering techniques. Design/methodology/approach An eclectic model that incorporates the dimensions identified as determinants of profitability in the previous literature is estimated by means of PLS. Subsequently, in a second stage the hotels are classified using clustering techniques to study which combination of hotel characteristics, location, competitive environment and tourist destination achieve higher profitability. Findings The results show that hotel characteristics, hotel location, competitive environments and tourist destination factors impact on the hotel performance. Also, the results highlight that the eclectic model proposed have to be further developed in future studies, incorporating more theoretical constructs and variables. Research limitations/implications The results contribute to identify and quantify the determinants of profitability in the hotel sector and which combination of them achieve higher profitability. Moreover, this paper provides new evidence to support an eclectic theory of profitability determinants in the hotel sector. Consequently, this paper claims the need of a deeper integration of different areas of expertise to analyse hotel profitability. Originality/value This research is the first empirical evidence that proposes an eclectic model and uses clustering techniques in the study of profitability differences considering simultaneously hotel characteristics and its location. The variables used allow to measure different aspects of the attributes of the hotel and its location.

scholarly journals Performance Evaluation of Solar PV Power Plants in Taiwan Using Data Envelopment Analysis

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4498
Author(s):  
June Raymond Leonen Mariano ◽  
Mingyu Liao ◽  
Herchang Ay
Keyword(s):  
Performance Evaluation ◽  
Data Envelopment Analysis ◽  
Power Plants ◽  
Data Envelopment ◽  
Solar Photovoltaic ◽  
Solar Pv ◽  
Power Capacity ◽  
Future Studies ◽  
Precise Measure ◽  
Using Data

Due to the worldwide impact of industrialization, renewable sources of energy from solar play a huge role in supplying the domestic demand in Taiwan. This paper aims to impart an unbiased performance evaluation of different solar photovoltaic (PV) power plants around Taiwan. This study utilized data envelopment analysis (DEA) using the epsilon-based measure (EBM) model to compute the performance efficiency and ranking of the solar PV power plants. Additionally, the model is used for its advantage of combined radial and non-radial measures to achieve a more precise measure of efficiency. The results show that among nine selected solar PV plants, the top-performing DMU was I (8200051) from the southern part of Taiwan. Therefore, this study recommends that EBM can be a useful tool to evaluate the performance of solar PV power plants using multiple inputs and outputs. Additionally, this study will contribute to sustaining and developing the existing solar PV power capacity while achieving the installation of 20GW of solar energy as part of Taiwan’s goal. Even though the study has achieved the set goals, various restrictions remain present. Future studies could address micro and macro-level factors that influence the performance of solar PV power plants, which are not included in this study.

scholarly journals The Efficiency Score of Small Accommodation Businesses in Non-Coastal Rural Areas in Greece

2021 ◽  
Vol 13 (19) ◽  
pp. 11005
Author(s):  
Eleni Dimitriadou ◽  
Thomas Bournaris ◽  
Theodoros Stavrinoudis ◽  
Olga Iakovidou
Keyword(s):  
Rural Areas ◽  
Hospitality Industry ◽  
Efficiency Score ◽  
Data Envelopment ◽  
Truncated Regression ◽  
Simple Complex ◽  
Policy Makers ◽  
Second Stage ◽  
Interval Efficiency

Small accommodation businesses dominate the rural hospitality industry, producing simple or complex tourist products and services in order to be sustainable and competitive. In this paper, a two-stage data envelopment analysis (DEA) model was applied in a representative sample of 151 small accommodation businesses in non-coastal areas in the region of Central Macedonia in Greece. In the first stage, DEA-bootstrapping is applied to estimate point and interval efficiency ratios of accommodation businesses and identify the benchmark accommodations. The double bootstrapping truncated procedure of Simar and Wilson is implemented in the second stage to investigate the role of five business factors in terms of efficiency. The findings suggest that small accommodation businesses, although they are based in areas where tourist resources abound, are inefficient. Moreover, the results of the truncated regression method showed that the business’s size, the operating days, and the variety of activities (simple/complex) affect business’s inefficiency. On the contrary, the business’s age and their engagement in agriculture or not do not affect business’s efficiency. The results are important for rural entrepreneurs and policy makers, and they will also be useful for the adaptation of businesses to increase their efficiency.

scholarly journals Performance Evaluation of Fishery Enterprises Using Data Envelopment Analysis—A Malmquist Model

Mathematics ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 469
Author(s):  
Chia-Nan Wang ◽  
Thi-Ly Nguyen ◽  
Thanh-Tuan Dang ◽  
Thi-Hong Bui
Keyword(s):  
Performance Evaluation ◽  
Data Envelopment Analysis ◽  
Technological Progress ◽  
Data Envelopment ◽  
Domestic Economy ◽  
Factor Productivity ◽  
Sales Revenue ◽  
Business Efficiency ◽  
Using Data ◽  
Decision Making Units

In Vietnam, fishing is a crucial source of nutrition and employment, which not only affects the development of the domestic economy but is also closely related to exports, heavily influencing the economy and foreign exchange. However, the Vietnamese fishery sector has been facing many challenges in innovating production technology, improving product quality, and expanding markets. Hence, the fishery enterprises need to find solutions to increase labor productivity and enhance competitiveness while minimizing difficulties. This study implemented a performance evaluation from 2015 to 2018 of 17 fishery businesses, in decision making units (DMUs), in Vietnam by applying data envelopment analysis, namely the Malmquist model. The objective of the paper is to provide a general overview of the fishery sector in Vietnam through technical efficiency, technological progress, and the total factor productivity in the four-year period. The variables used in the model include total assets, equity, total liabilities, cost of sales, revenue, and profit. The results of the paper show that Investment Commerce Fisheries Corporation (DMU10) and Hoang Long Group (DMU8) exhibited the best performances. This paper offers a valuable reference to improve the business efficiency of Vietnamese fishery enterprises and could be a useful reference for related industries.

Labour-use Efficiency of Assam Gramin Vikash Bank: Branch- and District-level Analysis

2021 ◽  
pp. 232102222110243
Author(s):  
Mohuya Deb Purkayastha ◽  
Joyeeta Deb ◽  
Ram Pratap Sinha
Keyword(s):  
Efficiency Score ◽  
Significant Variable ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Second Stage ◽  
Time Period ◽  
Use Efficiency ◽  
The Mean ◽  
The Impact ◽  
Observation Period

The present study estimated labour-use efficiency of 48 branches of Assam Gramin Vikash Bank at its branch level, covering three districts of Barak Valley, which falls under Silchar region of the bank for the time period from 2010–2011 to 2017–2018. The study applied data envelopment analysis for estimating labour-use efficiency. In the second stage, the study applied censored Tobit regression for determining the impact of several contextual variables on efficiency. The study reveals that the mean labour-use efficiency score of the selected branches is 76% when averaged for the in-sample branches over the observation period. Results of the Tobit regression identified cluster 2 and total business of the branches as the significant factors for determining efficiency and the number of employees as a significant variable influencing inefficiency. JEL Classifications: G2, G20, G21, J3

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