The Operational Efficiencies of the Hotel and Guesthouse Business in Thailand

Akarapong Untong (), Phanin Khureathai () and Mingsarn Kaosa-ard ()
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Akarapong Untong: Public Policy Studies Institute, Chiang Mai University, Chiang Mai, Thailand
Phanin Khureathai: Faculty of Management Science, Uttaladit Rajabhat University, Uttaradit, Thailand
Mingsarn Kaosa-ard: Public Policy Studies Institute, Chiang Mai University, Chiang Mai, Thailand

Applied Economics Journal, 2011, vol. 18, issue 1, pages 44-63

Abstract: This paper aims to assess the operational efficiencies and technology gaps in hotel and guesthouse business in Thailand. The study classified the hotels and guesthouse into five groups with distinctive levels of operational technologies. A meta-frontier analysis is applied to evaluate the efficiency scores of 1,799 samples of hotels and guesthouses in year 2007. It is analyzed within the same groups and between groups. The results show that the international chain or foreign investment hotels had the highest efficiency scores. The mean operation efficiencies in motel group had the lowest efficiency scores. In addition, the empirical results reveal that in case of different operational technologies, using pool frontier and group frontier approaches would provide an over-estimation of the efficiency scores. This study suggests different policies and technologies should be used to improve the operational efficiencies in hotel and guesthouse business. Sharing and transferring the operations knowledge within the group and among the groups would help develop the operational technologies and increase the efficiencies for the whole industry.

Keywords: hotel; guesthouse; operational efficiency; stochastic meta-frontier (search for similar items in EconPapers)
JEL-codes: C20 C50 D24 L83 (search for similar items in EconPapers)
Date: 2011
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Persistent link: http://EconPapers.repec.org/RePEc:aej:apecjn:v:18:y:2011:i:1:p:44-63

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