Assessing efficiency and managerial behaviour in the Spanish golf hotel industry

Abstract

This paper analyses the efficiency of a sample of Spanish hotels which manage golf courses. Data characteristics justify the application of the super-efficiency non-parametric data envelopment analysis approach developed by Andersen and Petersen ([1993]. A procedure for ranking efficient units in data envelopment analysis. Management Science, 39(10), 1261–1264). A truncated Bayesian Tobit regression is also applied in a second stage to study the effect of a large set of determinant variables on golf hotel efficiency. In average terms, Spanish golf hotels perform efficiently, which can be explained by the maturity and leadership of the Spanish golf product. Analysis of determinant variables shows important conclusions for hoteliers and policymakers. For instance, differentiation factors (e.g. offering tennis facilities), supply characteristics (e.g. hotel category), destination factors (e.g. location in the Spanish territory) and economic cycle variables (e.g. global financial crisis) have a significant effect on golf hotel efficiency.