Efficiency performance of the Algarve hotels using a revenue function [Summary]

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Virginia Tech


The tourism industry, particularly the hotel sector, is becoming increasingly competitive and dynamic as a result of the pressures of globalized supply and demand in a context of uncertainty. The aim of this study is to discuss the efficiency of hotel companies in the Algarve (Portugal), a tourist destination of excellence in southwest Europe. In particular, we intend to assess the efficiency of the hotels in terms of star rating (four and five-star hotels), their location (Windward and Leeward), owning or not golf courses and owning just a single hotel or more than one. This analysis will be based on the parametric method of stochastic frontier approach using a revenue function.



SFA, Revenue function, Hotels, Stars, Location, Golf