Operational Efficiency and Technology Gap Ratio of Hotels under Different Environments (in Thai)

Abstract

This paper applied data envelopment analysis with slacks-based measure and metafrontieranalysis to assess the operational efficiencies and technology gap ratios of the resorts andboutique hotels of Thailand’s hotel chain in Chiang Mai and Phuket. Data were from 14 hotelsin Chiang Mai and 34 hotels in Phuket. It was found that hotels belonging to each type, inChiang Mai and Phuket, had no difference in efficiencies but had different technology gapratios; the environment caused the differences. Environment is associated with location.These differences prompted the hotels to apply diverse innovations in their operations.Hotels in Phuket had a higher operational technology than those in Chiang Mai. Increasing theefficiency of room occupancy and enhancing labor productivity would improve efficiencymore than reducing operational cost. The findings suggest that approaches to promotethe efficiency of a hotel’s operation should vary in accordance to environment. The hotelswould also do well to develop and share innovations in operation based on their environment.

Keywords: Hotel, operational efficiency, technology gap ratio, metafrontier, slacks-based measure

JEL Classification: C14, C60, D24, L83