Evaluating the multi-period operating efficiency of international airports using data envelopment analysis and the Malmquist productivity index

For the most part, airports are publicly or semi-publicly owned and operated with fixed assets. As such, airports have been often considered little more than infrastructure providers for airlines. However, as airports have begun to offer a variety of ancillary services including passenger transfers, re-fueling, parking, and shopping, they no longer play second fiddle to airlines. To come into their own, a growing number of airports realized their need to develop competitive strategies that can attract more air traffic and generate greater revenue. Such strategies start with the assessment of their competitiveness in terms of operating efficiencies relative to others. To help airport authorities identify major drivers for enhancing the airport operational efficiency and the subsequent competitiveness, this paper evaluates the comparative efficiencies of international airports for a multi-year period (2006–2011) using data envelopment analysis intended for dynamic benchmarking and Malmquist productivity index built on time-series analysis. Our study indicates that the productivity of an airport was influenced by exogenous factors such as shifts in government policies and technological advances rather than endogenous factors driven by improvements in managerial practices.     

Efficiency and productivity growth in hotel industry

This paper analyses the relative efficiency and productivity of a representative sample of Portuguese hotels by using the directional distance function and the Luenberger productivity indicator. The key advantage of this approach is that both input contraction and output expansion are considered. The model generates hotel efficiency scores, ranking the hotels in the sample. We conclude that both inputs and outputs play a major role in hotel efficiency. Therefore, we suggest an alteration of management procedures in order to enable efficiency to be increased, based on an effective enhanced‐incentive policy and taking into account the small hotel characteristics of the sample. Copyright © 2008 John Wiley & Sons, Ltd.     

Airport quality and productivity changes: A Malmquist index decomposition assessment

This paper analyses the productivity of 20 Italian airports management companies during the period 2006–2008 using a DEA Malmquist index that includes a quality component. The proposed methodology is applied for the first time to the airport industry. In doing so, we directly assess the impact of the quality of services delivered by an airport on its productive performance. The study shows that, while Italian airports possess an acceptable level of quality in terms of their infrastructure, their managerial/administrative procedures must be strengthened in order to better deal with both technological modernization and passenger waiting time at the airports.     

Dynamic carbon emission performance of Chinese airlines: A global Malmquist index analysis

Monitoring the carbon emission performance of Chinese airlines helps inform targeted carbon-reduction policies. This paper proposes a global Malmquist carbon emission performance index (GMCPI), which can measure dynamic changes in total factor carbon emissions performance over time using a production frontier framework. The study then applied the proposed index to evaluate carbon emission performance of 12 Chinese airlines from 2007 to 2013; the study also proposed bootstrapping GMCPI to perform statistical inferences on the GMCPI results. The empirical study generated in three meaningful findings. First, the carbon emission performance of the airlines improved by 11.93%, mainly through technological progress. Second, there were carbon emission performance differences among three different airline types; there was also a convergence of carbon emission performance. Third, the most important factor influencing carbon emission performance was the air routes distribution. Chinese airlines should consider improving carbon emission performance further, by establishing an evaluation system, enhancing communication and coordination among different airlines, adjusting the scale of airline development, and optimizing the air routes distribution.     

Productivity efficiency analysis of the airlines in China after deregulation

Using data envelopment analysis and the Malmquist productivity index, this paper studies productivity efficiency of various airlines in China after the Chinese government deregulated the aviation industry in 2005. The results show that the productivity efficiency of non-state-owned airlines improves rapidly and eventually exceeds state-owned airlines after the deregulation policy. Among the state-owned airlines, the productivity of the local airlines and their technical changes are better than those of the central airlines.     

An analysis of demand uncertainty in the hotel market

This study proposes a two-step approach to investigate the impact of certain environmental variables on demand uncertainty within the hotel sector. Adopting a simultaneous-equation model and using the operation data of international tourist hotels in Taiwan, this study shows that chained hotels face less demand uncertainty than independent hotels. Additionally, hotels that are more distant from the airport or located in metropolitan areas face a significantly higher degree of demand uncertainty.     

Estimating efficiency and its determinants in the hotel sector using a profit function

Inefficiency in the hotel sector is normally estimated through cost and scale efficiencies. This paper estimates hotel profit efficiency and its determinants employing a stochastic frontier profit function and the inefficiency effects function. The key advantage of this methodology is its ability to estimate efficiency for each hotel and the factors that explain differences in efficiency in a single-stage sampling procedure. The sample consists of 231 hotels in Spain in the period 2008–2012. Empirical evidence shows that the average level of profit efficiency is 45.85% and that age, labour productivity and location are determinants of this efficiency. Policy implications for the improvement of less efficient hotels are noted.     

Seasonal hotel jobs: an occupation and a way of life

Research for the present study was undertaken in the summer of 1995. This paper seeks to identify whether Salaman's notion of ‘occupational communities’ exists in a sample of six British seasonal seaside hotels, a relatively unexplored sector of the hotel industry. Briefly, occupational communities have as their major focus the job itself and they are also characterised by a fusing of work and leisure activities. Interviews with 30 hotel workers indicate that seasonal, and particularly live-in workers, tend to form distinct ‘occupational communities’. These communities, however, are different to ‘traditional’ occupational communities in a number of respects. Most importantly, instead of the job itself being the focus for community formation, job importance is replaced by work situations characterised by hedonism and close social bonding. Copyright © 1999 John Wiley & Sons, Ltd.     

Decline and turnaround: a literature review and proposed research agenda for the hotel sector

Tourism systems are composed of an inter-related and inter-dependent set of individual businesses, organisations and servicescapes. The hospitality industry, and more specifically the hotel sector, comprises many businesses that contribute significantly to the tourism system. Yet, the industry is renowned for business failures and poor financial returns. Increasing competition, globalisation, technology, social change and internal weaknesses are some of the reasons why tourism and hospitality businesses fail or perform significantly below expectations. When in a state of decline or poor performance, many businesses attempt a ‘turnaround’. Declining performance can have wide-ranging impacts not only on hotel businesses directly, but also upon those communities where local economies rely on tourism for jobs and economic prosperity. Consequently, an improved understanding of the processes of declining performance and turnarounds is particularly important to both researchers and practitioners. However, there has been limited research focused on turnarounds in the tourism industry, in general, and in the hotel industry, in particular. In this study we assess the literature on decline and turnarounds and propose an agenda for future research that will enhance our knowledge and inform ongoing debate on the process and impact of turnarounds in the hotel industry.     

The development of environmental initiatives in tourism: responses from the London hotel sector

In tourism, natural resources and the physical environment are regarded as important assets to enhance the product. Practitioners in this multisectoral industry (including hotels) perceive the environment and its resources to be a crucial feature in attracting more tourists. Today, most sectors of industry face pressure to improve their environmental performance. Hotels as a component of tourism are no exception. Hotels can act to reduce their environmental impacts and, collectively, make a substantial contribution to improving the quality of the environment. A wide range of publications offer guidance and advice on the actions hoteliers may take to alter their practices and thus address environmental issues. Yet, to date, it is not clear how many hotels are applying these recommendations, nor which actions share this common goal. Equally, the lack of operationalisation in environmental principles, implicit within many codes of practice, is seeing the emergence of a gap between theory and practice in these matters. It is the nature of this gap that is explored. Additionally, an assessment is undertaken of what the tourism industry is doing to improve environmental performance, and a case study is presented based on a detailed survey of environmental management practices in 42 London hotels. Copyright © 1999 John Wiley & Sons, Ltd.     

The performance of the Slovenian hotel industry: evaluation post‐privatisation

This study analyses the technical efficiency of Slovenian hotels using the data envelopment analysis method. Multiple inputs and outputs are included in the analysis, ranging over the period 2005–2007. The results reveal an increase in efficiency over the period analysed. The results also confirm that factors such as the hotel's year in business, star rating and size are positively related to efficiency variations between hotels. Copyright © 2010 John Wiley & Sons, Ltd.     

An environment-adjusted dynamic efficiency analysis of international tourist hotels in Taiwan

The paper is the first study to combine four-stage approach and dynamic data envelopment analysis (DEA) to investigate the efficiencies of 45 international tourist hotels in Taiwan during 2002–2011. Using the four-stage approach of Fried et al. [1999. Incorporating the operating environment into a nonparametric measure of technical efficiency. Journal of Productivity Analysis, 12(3), 249–267] and the dynamic DEA model by Tone and Tsutsui [2010. Dynamic DEA: A slacks-based measure approach. Omega, 38(3), 145–156], the study considers the effects of the external operating environments and carry-over activities between two consecutive terms, and calculates managerial efficiency of international tourism hotels in Taiwan. The empirical results show that dynamic DEA provides more stable pure managerial efficiencies than traditional DEA, reflecting the continuity of the links between terms. Then the study employs Tobit regression to estimate the effects of location, management style, and occupancy rate on input slacks. The location in resort area leads to less slacks of employee and room. The chain system helps reduce slacks in room and area of meal department. The slack of employee and room gets lower while occupancy rate gets higher. After controlling the three external environment variables, the efficiency scores of 28 hotels increase, 9 hotels fall, and other 8 hotels still sustain on the efficient frontier.     

Integrated airline productivity performance evaluation with CO2 emissions and flight delays

This paper evaluates the airline productivity change by applying a modified global Malmquist productivity index (GMPI) model, incorporating both CO₂ emissions and flight delays. Statistical inference is also performed on the GMPI results using the bootstrapping method. Empirical research was conducted on 15 international airlines during 2011-2017. The obtained results showed that the productivity of all airlines had been fluctuating and experienced a slight increase over 2011–2017. Most of these 15 airlines made more progress in managing punctuality than CO₂ emissions. High punctuality policy may not be the best choice for all airlines when considering financial constraints, while airlines in more liberalized aviation markets are more likely to improve productivity by reducing flight delays. Efficiency change and technological change were the major driving factors for the growth of airline productivity. European and US airlines benefitted more from superior technology, while most Asian and Oceanian airlines still benefitted from the advantage of efficiency. Based on the findings, specific management advice was given.     

Measuring total factor productivity of airports— an index number approach

There is an increasing trend towards corporatisation and privatisation of airports in an effort to improve performance. However, the normal financial reporting requirements associated with these forms of organisation are not sufficient indicators of the performance of airports since profitability can be more a function of the exercise of market power than a sign of productive efficiency. Also, there are concerns that efforts to regulate the prices charged by airports can result in under-investment and declining service standards. This makes it important to monitor the cost-efficiency, cost-effectiveness and service-effectiveness of airports. There is a growing literature on these topics, but so far there has been little attempt to apply the concepts of total factor productivity to the airport sector. We use a non-parametric index number method to illustrate how such a global measure can be used to investigate the role of disaggregated performance measures that often are very useful to managers and to those monitoring airport operations.     

Selecting a hotel and determining salient quality attributes: a preliminary study of mature british travellers

The paper presents the findings of a survey of 104 mature British travellers, who rated the importance of 38 hotel attributes when selecting a hotel or judging its quality, through a self‐administered questionnaire distributed at local branch meetings of societies for mature people. Respondents had high expectations of hotel service quality. They were a discerning group, placing greater emphasis on value for money than on actual price or discounting alone. The findings highlighted the importance placed on service staff attitude and behaviour. Leisure facilities were found to be relatively unimportant, but certain mature‐specific attributes pertaining to mobility limitations were found to be salient to an important proportion of respondents. Significant differences were identified according to gender, age and retirement status, indicating that the mature market is heterogeneous. Copyright © 2000 John Wiley & Sons, Ltd.     

Benchmarking the noise-oriented efficiency of major European airports: A directional distance function approach

The EU Environmental Noise Directive (END) requires member states to produce noise action plans for all major airports every five years. Using that data, this paper employs a directional distance function approach to estimate noise-oriented efficiency of 60 European airports between 2006 and 2011. Technical change is calculated using the Malmquist productivity index. The results indicate that European airports have improved their noise efficiency between 2006 and 2011, and some degree of convergence in noise performance across countries is seen. Larger aircraft size is linked to better noise performance. Inefficient airports would also benefit from more stringent night movement limits.     

Co-creation with clients of hotel services: the moderating role of top management support

Hotels can strengthen their competitiveness by expanding their innovation process beyond the boundaries of the firm to exploit the valuable knowledge and skills of their customers. This study examines the effects of new service (NS) co-creation with customers in the hotel industry on NS performance, as well as the moderating role of top management support. The research also explores the main barriers faced by hotels to co-create service innovations. Partial least squares structural equation modelling results indicate that Customer co-creation exerts a direct impact on NS market outcomes and NS development (NSD) speed, which in turn favours NS quality. NS quality translates into better NS customer-related outcomes as well as in improved NS market outcomes. Top management support enhances the effect of Customer co-creation on the NSD speed. The main barrier to NS co-creation in hotels is to find customers interested in devoting time to this activity or with the appropriate knowledge and experience.     

Four decades of airline productivity and efficiency studies: A review and bibliometric analysis

Airline productivity and efficiency have remained an area of tremendous interest among both academics and industry analysts since the Airline Deregulation Act of 1978 was enacted in the United States. This paper provides a bibliometric analysis of airline productivity and efficiency studies during the period from 1979 to 2020. The results show that the Journal of Air Transport Management, Transportation Research Part A, and Transportation Research Part E were the top three outlets preferred for publications in this area during the study period, and productive authors were likely to produce influential works. Research interest in airline productivity and efficiency has spread to encompass more diversified geographical regions over time, and new researchers from a broad range of fields continue to become interested in this field of research. Data envelopment analysis and stochastic frontier analysis are shown to be the most popular methods used by researchers, and studies are increasingly attempting to incorporate undesirable outputs, such as carbon emissions, flight delays and accidents, into the measurement and analysis of airline performance. The results from this study can provide guidance for future research issues and directions.     

Comparing efficiency of holding business model and individual management model of airports

This research compares the efficiency of holding business model to individual management model of airports, employing some robust non-parametric partial frontier-based methods to compare the statistical distributions of efficiency, under different scenarios, to find out which group of airports yields better global performance. The comparison between groups will follow a Malmquist index decomposition, which seems to be the most appropriate tool for within- and inter-group performance comparison. For this purpose, a sample of 145 airports from three continents is utilized. The results provide evidence that European airports are the most productive ones, and within this cluster, the individual management model presented a significant frontier shift with respect the holding cluster frontier, meaning that the former is much more productive than the latter.     

Impact of introducing eco-innovation measures on productivity in transport sector companies

This paper analyses the impact of factors related to innovation and the environment, among others, on labour productivity in the Spanish transport sector. The methodological approach used in this study was based on the CDM structural model. The main advantage of this model is its capacity to integrate investment in R&D and the generation of knowledge and production innovation. The data used in the estimations were obtained from the Technological Innovation Panel (PITEC) database. PITEC is a panel-type database jointly prepared by the Spanish National Institute of Statistics (INE) and the Spanish Foundation for Science and Technology (FECYT). The econometric results show that reducing the environmental impact has a statistically significant and positive effect at all stages of the innovative process and above all on labour productivity of transport firms, where the improvement of labour productivity can reach 8.35% compared to non-ecoinnovative companies. This finding could alert firms in the transport sector to the need to improve their activities by adopting environmentally proactive attitudes.