earticle

영어

Data Envelopment Analysis is employed to estimate the efficiency for the Korean hotel industry. The efficiency is decomposed into the technical, pure technical, and scale efficiency. In addition, super efficiency is used to differentiate the performance of the efficient hotels. We used number of employees, total assets, cost of goods sold, sales and administrative expense as inputs, and revenue as output. The result indicates that 8 DMUs of 35 hotels are efficient. Of the 29 inefficient hotels, most of the inefficient hotels are operating under conditions of increasing return to scale. In order to attain greater efficiency, increasing in inputs is recommended for DMUs under IRS. The result of super efficiency shows that DMU 6 is the highest ranked one of all the efficient hotels.