Spas Performances Benchmarking and Operation Effifif iciency

Abstract

This paper aims to benchmark the performance and operational efficiency of spas by using
key performance indicators. Data Envelopment Analysis (DEA) method with a Slacks-Based
Measure (SBM) of super-efficiency has applied to evaluate the operational efficiency of
21 spas which consist of 7 day spas and 14 hotel and resort spas. The result of the study
found that spa with the best performance can use existing resources efficiently and encourage
therapists to have the best productivity in service. However, the efficient operations of day
spas and hotel and resort spas are not statistically significant difference. Cost reduction of
spa products is one of the key factors that induce the increase of operational efficiency of
spas. Moreover, the results of hypothesis testing found that spa with good performance will
also have good operational efficiency. This study suggests that the operators/entrepreneurs
should promote the development of service skills of therapists and encourage economy of
scale approach in reducing cost of spa products, as well as promote knowledge management
in Thailand spa industry to stimulate learning from those who have excellent practices the in
industry. These will enhance the competitiveness of Thailand spa industry in the future.