Developing measures of airport productivity and performance: an application of data envelopment analysis

Many studies have investigated the financial results and economic productivity of airlines but few have investigated the productivity or performance of airports, and how changes in the industry may have affected them. Most airports measure performance strictly in accounting terms by looking at only total costs and revenues and the resulting surpluses or deficits. Few utilize any type of productivity measure or performance indicator. This paper applies Data Envelopment Analysis to assess the performance of airports. It is used to construct performance indices on the basis of the multiple outputs which airports produce and the multiple inputs which they utilize. In particular we develop productivity measures for terminals and airside operations. The performance measures are then used in a second stage Tobit regression in which environmental, structural and managerial variables are included. The regression results provide a ‘net’ performance index and also identify which variables the managers have some control over and what the relative importance of each variable is in affecting performance. The data set contains a panel of 21 U.S. airports over a five-year period.     

Measuring airports’ operating efficiency: a summary of the 2003 ATRS global airport benchmarking report

This paper provides a partial summary of the 2003 ATRS (Air Transport Research Society) Global Airport Benchmarking Report which uses the annual data for 2000–2001. The objective of the ATRS benchmarking report is to measure and compare the performance of several important aspects of airport management and operation: productivity and efficiency, unit costs and cost competitiveness, financial results. The report also examines the relationships between various performance measures and airport characteristics in order to better understand the observed differences in airport performance. This particular paper extracted from the benchmarking report focuses on measuring and comparing operating efficiency performance of the world’s major airports. In particular, the paper presents the results on the airports’ Variable Factor Productivities (VFP) after removing the effects of the variables beyond managerial control. In the process, it identifies the effects of various factors influencing airport’s VFP, and computes a ’residual’ VFP index as an indicator for airports’ operations efficiency.     

Measuring airport service quality: A multidimensional approach

Currently, airports are expected to be operated as self-sufficient service organizations providing efficient and high-quality services to a variety of customers. In this context, improving airport service quality (ASQ) has become paramount. However, due to the complexity of the airport service environment, an effective process of measuring and analyzing passenger perceptions of ASQ is not easily achieved. Generic scales for perceived service quality might not cover some particularities of the passenger–airport interaction. Furthermore, while some measurement practices have been developed within the airport industry, there has been only limited consideration for validity and reliability. These concerns are certainly relevant to avoid misinterpreting passenger perceptions. In view of these concerns, this paper has a twofold objective. First, to fit a measurement model for perceived ASQ built on typical service measures within the airport industry. Second, to test for the model's equivalence across groups of passengers. Sample data from an extensive survey applied at a major Brazilian airport was used for confirmatory factor analysis. The results suggested that a six-factor structure provides a meaningful multi-item measurement model for perceived ASQ. The model was validated for international and domestic departing passengers with respect to its factorial structure and metric invariance. The proposed measurement model could be considered an alternative for a multidimensional approach in the context of airport performance measurement regarding service quality. Finally, the findings from this research might contribute to the discussion on passenger perceptions of ASQ, particularly concerning its multidimensionality and the need to review current practices for ASQ analysis.     

Evaluating the efficiency of a small hotel chain with a Malmquist productivity index

By applying data envelopment analysis (DEA) a two‐stage procedure is followed to evaluate the determinants of efficiency of a Portuguese public‐owned hotel chain, Enatur for the period 1999 to 2001. In the first stage the paper estimates the Malmquist index and breaks it down into technical efficiency and technological change. In the second stage, a Tobit econometric model, designed to relate efficiency scores, along with other managerial and contextual variables, is used to identify the efficiency drivers. The implications of this study for managerial purposes are then discussed. Copyright © 2005 John Wiley & Sons, Ltd.     

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.     

Total factor productivity analysis of the UK airport industry: A Hicks-Moorsteen index method

This study examines the total factor productivity (TFP) change of the UK airport industry from 2001 to 2009 using a Hicks-Moorsteen index method. The results show that the industry experienced an average annual growth in TFP of 0.32 per cent with efficiency change being the main contributor to the TFP growth. We find that private UK airports enjoy slightly higher TFP growth than those in public or mixed ownership. Regulation and airport size are found to have statistically significant effects on the airport productivity level.     

Determinants of performance for agritourism farms: an alternative approach

Previous studies on determinants of agritourism farm performance are inconclusive. Moreover, the key success factors of high and low performance may differ. Differing from previous studies, this study applies quantile regression to identify the determinants of agritourism farm performance in different categories based on Taiwanese agritourism farms census data. The results indicate that large farms perform well for those in the high-performance categories. The quantity and quality of human resources are key success factors for mid- and high-performance farms. Additionally, agritourism business model generally plays a critical role in determining performance.     

Methods of air traffic management in the airport area including the environmental factor

In the modern approach to air traffic management (ATM), issues related to air quality and climate protection have led to the introduction of a growing number of new restrictions instead of having these issues be the objectives of actions taken. The aim of the study was to investigate whether it is possible to improve air quality while controlling pollution emission by introducing changes in the organization of air traffic control at the airport. For this purpose, mathematical models of emissions were created. These concern the movement of aircraft near the airport and emission of carbon dioxide and the spread of human health related substances emitted from a landing airplane's engine. The first case refers to the possibility of using different arrival procedures. The second case was to adapt the Pasquill formula by treating landing aircraft as a sequence of point-source emissions. As a result of applying the designed models and software tools, it was proven that both a change in the arrival trajectory and a change of the runway can contribute to a reduction of CO₂ emission into the atmosphere. The emission maps created for different aircraft approach profiles show the ability to control the local concentration of harmful emissions. The study clearly shows that the current approach of maximizing throughput is not beneficial to air quality. ATM services should consider the use of other variants of air traffic organization, particularly during periods of reduced traffic.     

Monitoring hotel performance using occupancy time‐series analysis: the concept of occupancy performance space

Time series factor analysis is used to identify four temporal dimensions of occupancy performance in 279 English hotels over the period January 1992 to December 1994. These dimensions referred to as reference curves differentiate hotels on the basis of overall occupancy level (RC1), seasonality (RC2), long‐term trend (RC3) and length of season (RC4). The reference curves are used to define the dimensions of occupancy performance space in which the 279 hotels are positioned, with the hotels differentiated by hotel situation type. It is shown that the positioning of a hotel in occupancy performance space can provide a precise and effective basis for hotel marketing.