Hotel performance in the Guangdong-Hong Kong-Macau Greater Bay Area : a non-homogeneous perspective

Abstract

Improving upon previous studies on hotel performance evaluation in terms of efficiency, which usually treat different hotels as homogeneous in their product provision, this study examines the performance of 53 hotels in the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) during 2015 to 2019, by employing data envelopment analysis with a non-homogeneous decision making units (DMUs) model. The results show that the hotels in GBA were inefficient, and those with high product diversification are generally closer to achieving optimal efficiency levels, particularly those providing rooms, food and beverage, meeting services, and spa services, while those providing only rooms had the worst performance. Among the GBA cities included in this study, the non-homogeneous efficiency scores of the hotels in Guangzhou outperformed those of hotels in the other cities, and the overall hotel efficiency score of the core cities was better than that of the key node cities.