Spas Performances Benchmarking and Operation Efficiency*

Akarapong Untong () and Mingsarn Kaosa-ard ()
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Akarapong Untong: Public Policy Studies Institute, Chiang Mai University
Mingsarn Kaosa-ard: Public Policy Studies Institute, Chiang Mai University

Applied Economics Journal, 2014, vol. 21, issue 1, 1-19

Abstract: This paper aims to benchmark the performance and operational efficiency of spas by using key performance indicators. Data Envelopment Analysis (DEA) method with SBM super-efficiency model has applied to evaluate the operational efficiency of 21 spas which consist of 7 day spas and 14 hotel and resort spas. The result of the study found that spa with the best performance can use existing resources efficiently and encourage therapists to have the best productivity in service. However, the efficient operations of day spas and hotel and resort spas are not statistically significant difference. Cost reduction of spa products is one of the key factors that induce the increase of operational efficiency of spas. Moreover, the results of hypothesis testing found that spa with good performance will also have good operational efficiency. This study suggests that the operators/entrepreneurs should promote the development of service skills of therapists and encourage economy of scale approach in reducing cost of spa products, as well as promote knowledge management in Thailand spa industry to stimulate learning from those who have excellent practices the in industry. These will enhance the competitiveness of Thailand spa industry in the future.

Keywords: spas; benchmarking; key performance indicators; SBM super-efficiency (search for similar items in EconPapers)
JEL-codes: C14 C60 L83 M20 M21 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:aej:apecjn:v:21:y:2014:i:1:p:1-19

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