Measuring Operation Efficiency of Thai Hotels Industry: Evidence from Meta-frontier Analysis

Abstract

This paper utilizes a unique hotel-level dataset to examine operational efficiency and technology gap in Thailand’s hotels. This paper classifies the hotels in Thailand into five groups with distinctive levels of operational technologies. A meta-frontier analysis is applied to evaluate the operational efficiency scores of the hotels in same groups and between groups. The result show that, the hotels in the five groups differ in the use they make of input operational efficiency. Meanwhile, the mean efficiency of the hotels with room rate between 300–900 baht per night and total revenue lower than 1 million baht per year is particularly low. This study suggests to transferring knowledge about operational management from the hotels with higher operational efficiency to the hotels that had low operational efficiency. This might help to improve operational efficiency and competitiveness in long run.