Open AccessEvaluation of Efficiency and Its Determinants in Croatian Hotel Industry
Author(s) -
Maja Pervan,
Petra Babić
Publication year - 2021
Publication title -
international journal of economics and statistics
Language(s) - English
Resource type - Journals
ISSN - 2309-0685
DOI - 10.46300/9103.2021.9.17
Subject(s) - data envelopment analysis , croatian , regression analysis , tourism , sample (material) , variables , efficiency , variable (mathematics) , hotel industry , econometrics , business , statistics , economics , mathematics , geography , mathematical analysis , philosophy , linguistics , chemistry , archaeology , chromatography , estimator
The main objective of this research was to evaluate the efficiency of Croatian hotels and provide insights into the sources of their efficiency. In order to obtain set goals, a two-stage analysis was performed on a sample of 69 large and medium-size hotels that were operating in Croatia in 2019. In the first stage of analysis, the efficiency scores of hotels were obtained by using Data envelopment analysis (DEA), whereas in the second stage of analysis, achieved efficiency coefficients were served as dependent variable in a truncated regression model in which hotel’s ownership, age, location, size and star rating were applied as independent variables. As this is the first time that efficiency of Croatian hotel industry is investigated with the application of truncated regression analysis, this research contributes to the existing literature by shading new lights on the sources of hotels’ efficiency from the perspective of a country heavily relaying on seasonal seaside tourism. Results of the research showed that all analysed variables (except age) play significant and important role in determining the achieved level of efficiency.