Accounting for customer satisfaction in measuring hotel efficiency: Evidence from the US hotel industry

Document Type

Article

Publication Date

10-13-2011

Abstract

Customer satisfaction, though an important output, is often ignored in hotel efficiency studies. Our study provides empirical evidence that excluding customer satisfaction may lead to significant difference in the mean and ranking of hotel efficiency scores. We derive our hotel efficiency scores using the distance stochastic frontier method based on a balanced sample of leading hotel chains in the US. We present and compare the efficiency results from two models, one that includes customer satisfaction and one that excludes customer satisfaction. The study discusses the difference in efficiency scores between the models. It also elaborates on the efficiency scores of some individual hotel chains and provides directions for future research.

DOI

https://doi.org/10.1016/j.ijhm.2011.08.008

Original Citation

Assaf, A. G., Magnini, V. P. (2012). Accounting for customer satisfaction in measuring hotel efficiency: Evidence from the US hotel industry. International Journal of Hospitality Management, 31(3), 642-647. http://dx.doi.org/10.1016/j.ijhm.2011.08.008

Link to Full Text

Share

COinS