Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel...

[Full title: Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel Industry in Ecuador]

sustainability Article Data Envelopment Analysis (DEA) for Measuring the E ffi ciency of the Hotel Industry in Ecuador Angel Higuerey 1,2, * , Christian Viñan-Merec í 1 , Zulema Malo-Montoya 1 and Valent í n-Alejandro Mart í nez-Fern á ndez 3 1 Ciencias Empresariales, Universidad T é cnica Particular de Loja, Loja 110150, Ecuador; csvinan@utpl.edu.ec (C.V.-M.); zcmalo@utpl.edu.ec (Z.M.-M.) 2 Instituto Experimental de Investigaciones Human í sticas, Econ ó micas y Sociales (IEXIHES), Universidad de Los Andes, Trujillo 3150, Venezuela 3 Departamento de Empresa, Facultad de Econom í a y Empresa, Universidad de la Coruña, 15071 Coruña, Spain; valentin.martinez@udc.es * Correspondence: aahiguerey@utpl.edu.ec; Tel.: + 593-98-32-58519 Received: 30 November 2019; Accepted: 17 February 2020; Published: 20 February 2020 Abstract: The level of contribution of the hotel industry depends on di ff erent factors of production that they use in the provision of their services The way they use these factors of production will allow them to act e ffi ciently, in order to improve profitability and market position. Ecuador, in recent years, has directed public policies betting on the development of this industry. In this sense, this research seeks to measure the e ffi ciency and productivity of the Ecuadorian hotel industry. For this purpose, a significant sample has been selected; it consists of 147 businesses that provided hotel services during the period 2013–2017. These businesses are classified according to their quality and geographic location. This information has been useful to make a balanced panel data with one output (Revenue) and three inputs (Total_personnel, the non-current assets, and Consumption) by using the Data Envelopment Analysis (DEA). The results, which proved to be solid and accurate, indicate that the most e ffi cient businesses are the ones in the third class, whereas those hotels located in zones with tourist attractions and activities have a better optimization of those resources. This situation has an e ff ect on the significant improvement of their productivity Keywords: hotel e ffi ciency; productivity change; panel data; DEA; Ecuador 1. Introduction Ecuador is a tourist destination that, due to its location in the Andean Ridge area, is divided into four clearly defined regions: Coast, Highlands, Orient, and Galapagos Islands. These regions are di ff erent in terms of natural attractions, cultural heritage, and historical richness. The tourism potential in Ecuador is fostered by the communication existent among the four regions, whether by air or land The central government of Ecuador gives a high strategic value to the tourism sector. Therefore, a series of policies oriented to achieve sustainable development are proposed, not only in main cities but also in the rest of the regions of the country. For this purpose, the Ministry of Tourism works on three fundamental axes: (1) fostering domestic tourism, (2) increasing receptive tourism, and (3) generating and attracting investments In order to achieve this development, it is considered necessary that the destinations can be productive and e ffi cient in all their services. From these services, lodging, specifically its quality, has a priority position, not only in the objective quality, but also in the quality perceived by users. The aim is to elicit from users an essential attitude of prescription that visualizes a destination, adds notoriety to it, amplifies its potential as an attraction, and generates a significant added value Sustainability 2020 , 12 , 1590; doi:10.3390 / su 12041590 www.mdpi.com / journal / sustainability

Sustainability 2020 , 12 , 1590 2 of 18 According to the General Coordination of Statistics and Research of the Ecuadorian Ministry of Tourism [ 1 ], there are 5177 hotels that o ff er 96,717 rooms, which generates 224,317 lodging areas. All of this is distributed into hotels, hostels, motels, shelters, refuges, and other types of regulated lodging As for the tax collection from tourism activities, in terms of hotels and restaurants, the province that contributes the most is Pichincha (54.1%), followed by Guayas (25.3%) and other provinces with lesser percentages and relevance. This means that Ecuador has an important hotel infrastructure with a significant contribution to the country’s revenue Companies must be profitable, to stay in the market. An indicator of this profitability is the e ffi ciency of companies, which is based on comparing what a company does with what it should have done in order to maximize its production. The precursor of these studies, Farrell, 1957 [ 2 ], established the e ffi ciency measure for companies that use two productive factors to obtain a solo exit, using technology characterized by constant returns to scale. In this definition, three types of e ffi ciency come to light: technical e ffi ciency, price e ffi ciency, and global e ffi ciency. Technical e ffi ciency is defined by Koopmans, 1951 [ 3 ], by establishing that it is impossible to obtain more quantity of one product without producing less quantity of the other products, or without using more quantity of at least one other factor On the other hand, the quality of the service is a highly relevant factor for the development of the hotel sector; thus, according to this basic idea, this article is focused on determining, with the highest goodness of fit, the analysis of e ffi ciency in the Ecuadorian hotel sector Concern for the hotel and tourism industry has been frequent worldwide, for its contribution to the complications of countries (Kundu & Contractor [ 4 ]). There are various approaches to studies carried out in the hotel industry, an environmental approach and performance management by Molina-Azor í n, Claver-Cort é s, Pereira-Moliner, and Tar í [ 5 ], income management (IM) by Rodr í guez-Algeciras and Tal ó n-Ballestero [ 6 ], and the importance of consumer perceptions regarding the strength and height of a hotel industry brand (Forgacs [ 7 ]). E ffi ciency studies in this sector in Latin America are not abundant, and in Ecuador, an e ffi ciency analysis has not been carried out to date, which allows tourism companies and rectors to have knowledge about this aspect. Research has been conducted on management models, strategic plans, quality management, and customer service In an emerging economy, such as Ecuador, the e ffi ciency of the business fabric is transcendental The hotel industry is one of five main economic activities that concentrate more than 72.35% of the companies that contribute to its development (INEC) [ 8 ]; thus, knowing with certainty if resources are managed e ffi ciently is a concern for managers. The implementation of appropriate strategies will allow companies in the hotel sector to be more e ffi cient and productive; therefore, contribute to a better level of competitiveness to be more sustainable in a globalized economy For this analysis, we considered the main cities in Ecuador due to their high representativeness, and the potential extrapolation of the results to other urban contexts. The measure of e ffi ciency in the hotel industry allows for the comparison of what hotels are better using their production factors, making them more e ffi cient It is necessary to highlight that tourism activities have currently generated important developments, resulting in positive and negative impacts. Among the first is business, economic, and social growth The negative aspects include environmental wear and do not have corrective actions or comprehensive support plans. In this sense, e ffi ciency studies are fundamental factors for the development of sustainability, in the case of the hotel service The present study aims to measure the e ffi ciency and productivity of the Ecuadorian hotel industry during the period 2013–2017. In order to accomplish this, we divided our work into five sections. In the first one, a literature review about the hotel industry has been completed; in the second section, the situation of the hotel industry in Ecuador is discussed; in the third, we describe the data and method used; the fourth section shows the results obtained. Finally, the conclusions drawn after the data analysis are presented.

Sustainability 2020 , 12 , 1590 3 of 18 2. Literature Review This section aims to establish our research theme and reveals the existence of some studies that apply DEA to determine the e ffi ciency of the hotel and tourism industries. These studies mainly di ff er in the type of inputs and outputs employed, the samples considered, and / or the methods used The data envelope analysis, (DEA) initiated by Charnes et al. [ 9 ], is an approach based on mathematical programming to measure, in a relative way, the e ffi ciency of a group of decision-making units (DMU) with common inputs and outputs. The constant returns to scale (CCR) model, Charnes et al. [ 9 ], and the variable returns to scale (BCC) model, Banker, Charnes, and Cooper [ 10 ], allow each DMU under evaluation to choose weights for inputs and outputs by themselves, so that they obtain their maximum optimum performance score of e ffi ciency Lado-Sestayo and Fern á ndez-Castro [ 11 ] applied a four-stage DEA that broke down the supere ffi ciency into two parts: one part attributable to the tourist destination and the other part attributable to hotel management. To assess e ffi ciency, they considered variables from 400 hotels and 97 tourist destinations in the year 2011. The inputs employed were labor costs, depreciation, and operating costs. The output was sales revenue. The main results indicated that the tourist destination was the main cause of the di ff erences in the level of e ffi ciency among hotels. Additionally, the occupancy rate, the degree of seasonality, and the market concentration were the variables with the most impact on e ffi ciency Sellers-Rubio and Casado-D í az [ 12 ] implemented a two-stage double-bootstrap DEA. This study was conducted in 17 autonomous communities in Spain during the period 2008–2016. The inputs were the number of hotels in the region, number of beds available in the region, and number of employees The outputs were Average Daily Rate (ADR), Revenue per Available Room (REvPAR), and average occupancy rate. The environmental variables were duration of stay, number of international tourists that arrived in Spain, number of quality hotels, and the model of sun and sand tourism (dummy) The main results exhibit a high degree of hotel ine ffi ciency in the Spanish regions and a significant e ff ect of the environmental variables considered. Regarding the e ffi ciency of the hotels located in the di ff erent regions, La Rioja and the Canary Islands showed the highest e ffi ciency levels for the period under study in both models, while Galicia, Castilla-Le ó n, and Castilla-La-Mancha had the lowest levels obtained by the hotels Chatzimichael & Liasidou [ 13 ] carried out a study in 25 European countries during the period 2008–2015. The methods applied were DEA for e ffi ciency and productivity frontier, as well as a flexible translog production function that allowed us to di ff erentiate between the Hicks-neutral technical change and the partial factor. The inputs consisted of the number of beds and number of employees, and the only output was the number of overnights. One of the main results was that the concavity of the production technology, with respect to the capital inputs, and labor, was satisfied in the point of approximation that implied positive and diminishing marginal products Karakitsiou et al. [ 14 ] measured the e ffi ciency of the hotel industry and restaurants in the thirteen regions of Greece during the period 2002–2013. They applied DEA with the CCR and BBC models The input variables considered were the number of local units, number of employees, and investments. The output was invoicing. The main results indicated that the most e ffi cient regions were Attica, the North Aegean, and the South Aegean, while the regions of Eastern Macedonia and Thrace, Thessaly, and Central Greece had a lower e ffi ciency. Overall, the performance of many Greek regions could be considerably improved. The local organizations of destination management must do a great e ff ort to increase the tourist performance of Greek destinations by balancing inputs and outputs The evaluation of the hotel industry in the island of Sardinia, Italy, during the period 2004–2013 was carried out by Pulina and Santoni [ 15 ]. They applied a standard DEA along with the Simar–Wilson approach. In addition, they conducted a post-DEA study to identify factors that have an influence on the economic e ffi ciency of hotels. The inputs were tangible and intangible assets, as well as labor costs. The output was sales revenue. For the post-DEA, the financial variables were short-term debt index, cost of loans, and long-term debt index. The geographic variables were the administrative

Sustainability 2020 , 12 , 1590 4 of 18 province of Cagliari and Olbia-Tempio. The results obtained in this study demonstrate that the ine ffi ciency of businesses, as well as cost of money, have a negative e ff ect on the performance of hotels Moreover, the businesses located in highly specialized areas with strong seasonality are relatively ine ffi cient. On the other hand, the short-term debt index and long-term debt index have a positive impact on e ffi ciency Chaabouni [ 16 ] also analyzed the e ffi ciency of tourism and its determinants—in this case, in the 31 provinces of China during the period 2008–2013. For this study, a two-stage double-bootstrap approach was used. The scores of e ffi ciencies of bias-corrected DEA were first calculated by employing the smoothed homogeneous bootstrapped procedure [ 17 ]. Afterwards, the Tobit regression was utilized with a set of explicative variables. The inputs were employment, GDP of the tourism sector, social capital, and number of arrivals. The variables that were used in the Tobit regression were regional trade openness, education level, and number of hotels. Urbanization and temperature were also included in the regression model to obtain their influence on the e ffi ciency of tourism. The results show that the e ffi ciency of tourism in China was low during the period under study. At a regional level, the average tourist e ffi ciency in Eastern China was higher than in the center and West. The results also indicate that trade openness, climate change, and intensity of the competition in the market increase the e ffi ciency of tourism Xia et al. [ 18 ] applied DEA, and Chaabouni [ 16 ] implemented the Malmquist index (MI) methodology to calculate the e ffi ciency of Chinese tourism enterprises between the years 2005 and 2014. The inputs considered were fixed assets, number of employees, number of businesses in scenic places, travel agencies, and hotels. The outputs were operating income of scenic places, travel agencies, and hotels. The results obtained point out that the e ffi ciency and index of total factor productivity change (TFPC) of tourist enterprises remained low and both have decreased. On the other hand, the e ffi ciency of regional tourist enterprises in all of China is high in the eastern region, low in the central region, and high in the northwestern and western regions, which is like what [ 16 ] obtained A study was conducted in Taiwan by Ang, Chen and Yang [ 19 ]. They measured the e ffi ciency of hotel chains in Taiwan and their subsidiary hotels. The study data referred to seven hotel chains and their 21 subsidiaries during the period 2011–2015. A methodology of group e ffi ciency was applied along with group cross-e ffi ciency models. For group e ffi ciency, they developed two definitions First, the average performance that viewed group e ffi ciency as the average performance of their members. Second, the weakest performance that used the worst e ffi ciency of the members to indicate group e ffi ciency. Regarding group cross-e ffi ciency, they developed two models based on the average performance and the weakest performance as the group e ffi ciency. The results obtained in this study reveal that the Royal Hotel and the Regent Hotel obtained better results from 2011 to 2015 in comparison with other hotel chains Another important study is that of Mendieta-Peñalver et al. [ 20 ] who assessed the relationship between the competitiveness of the tourist destination and the competitiveness of international hotel companies, with a comprehensive approach based on Porter, was a mediation model to link the competitiveness of the destination, e ffi ciency, and competitiveness of the company. For global technical e ffi ciency, pure technical e ffi ciency and scale e ffi ciency were estimated using data wrap analysis techniques. The results confirm a positive relationship between destination competitiveness and company competitiveness, but e ffi ciency did not play a mediating role that united both In Latin America, particularly in Chile, the study by Figueroa et al. [ 21 ] was aimed at evaluating the e ffi ciency of the regions in Chile and their capacity to attract tourist flows between 2009 and 2014 In this study, the regions were taken as territorial units that could determine their own degree of tourist attraction, so the tourist flow was adopted as the variable to be optimized. Therefore, a virtual production function was applied to consider the tourist flow as production and lodging capacity, and other tourist and cultural activities as the main supplies. The DEA applied had two stages. In the first one, a non-parametric DEA was used to determine e ffi ciency indexes in the performance of the tourism industry. In the second stage, a bootstrapped truncated regression model was utilized to

Sustainability 2020 , 12 , 1590 5 of 18 identify the explicative factors that a ff ect those e ffi ciency levels. They have taken into consideration the external variables, mainly related to natural and cultural resources typical of the regions, as well as other installations related to their conditions of accessibility Carrillo & G ó mez [ 22 ] assessed the e ffi ciency of 15 hotels in the city of Bucaramanga, Colombia, in the year 2013. The method used was DEA. The results obtained were a classification of hotels in groups with similar e ffi ciency levels. Besides being an input for improvement in each hotel, the results are a solid base to undertake joint administrative actions in a way that the associativity and strengthening of the hotel industry are favored. It could be observed that there is no homogeneity in the information displayed in the financial statements by the organizations of the sector. Furthermore, the information is not enough and does not include all of the hotels Another study on the hotel sector that the DEA applies to is that by Sanjeev [ 23 ], to evaluate the e ffi ciency of hotel and restaurant companies operating in India. The results show 16 out of 68 hotel and restaurant companies are fully technically e ffi cient, having obtained a score of 1 (or 100 percent) This implies that these companies are optimally utilizing the inputs—capital employed, gross fixed assets, current assets, and the operating costs to produce the outputs—operating income and profit before depreciation, interest, and tax Other methodologies applied, unlike the DEA, is the stochastic frontier—a parametric method applied by Oliveira et al. [ 24 ] to evaluate the e ffi ciency of hotel companies in the Algarve (Portugal), a tourist destination of excellence in southwest Europe. Relevant levels of ine ffi ciency were found The results also indicate the important role of the operating environment, the location of the hotel, and the existence of golf facilities. Star rating and multi-hotel ownership do not seem to be as relevant Guetat et al. [ 25 ] evaluated the e ffi ciency of 63 hotels during 2011–2012 in order to measure the impact of corporate governance on the performance of Tunisian hotels. The results reveal that corporate governance has a positive and significant impact with hotel performance, and that hotels in Tunisia are, on average, operating at 65.02% e ffi ciency Finally, it is important to remark that we have not found previous studies in Ecuador about the e ffi ciency of the hotel sector. The research conducted so far in the Ecuadorian context has been focused on case studies aligned with management models, strategic plans, quality management, and customer service. Therefore, the convenience and relevance of the present study is highlighted, since it contributes to our research field, and could be the basis for future research 3. Situation of the Hotel Sector Currently, the tourism industry in Ecuador shows a high dynamism due to stimulus policies directed to local economies through specific actions for employment generation (income and investment, among others). These factors have a clear e ff ect on the economic growth of a tourist destination According to the General Coordination of Statistics and Research of the Ecuadorian Ministry of Tourism (CGEIMINTUR) [ 1 ] and based on the World Tourism Barometer of the World Tourism Organization (UNWTO), from a global perspective, it was determined that, in the year 2016, there were 1.237 billion international arrivals in di ff erent parts of the world. From these arrivals, 49.9% were in Europe, 24.8% in Asia, 3.9% in the Pacific region, and 16.1% in America. Moreover, the report indicates that there is an increase of 3.9% in comparison to the year 2015, which is a positive review for this important sector Consequently, according to the World Tourism Organization [ 26 ], there has been a continuous fostering of traveling in 2017. An evidence of two digits was detected, in terms of arrivals in Chile, Colombia, Ecuador, Paraguay, and Uruguay. In the case of Ecuador, according to the Ministry of Tourism [ 27 ], the tourism industry has gained more prominence since it became a strategic sector in the development of the country. This industry registered, due the tourist activity and the balance of payment, an important amount of $1,449.3 million, which places tourist activity as the third source of revenue of non-oil exports, after banana and shrimp activity In this emergent industry, the hotel industry of Ecuador acquires great relevance because, in order to consolidate the country as an attractive tourist destination, it is necessary to continue improving the

Sustainability 2020 , 12 , 1590 6 of 18 lodging o ff er. The purpose of this improvement is to attract more visitors and ensure optimal customer loyalty. It is important to emphasize that, in Ecuador, the main cities have 4 and 5-star lodging services, especially in Quito, Guayaquil, and Cuenca According to the tourism indicators of CGEIMINTUR [ 28 ], in Ecuador, tourism activity plays a fundamental role in the engine of the economy, becoming one of the main sources of economic income for the country. In addition to conceiving a series of benefits, reflected in the generation of work, it is so, the employment in the industry, according to the Ministry of tourism, in the third quarter of 2019, represented around 522,508 employees. In relation to the same period of 2018, an increase of 1.8% was generated, which represented 6.6% of national employment. The contribution to the tourism sector of The World Travel & Tourism Council (WTTC) data of 2018 indicated that GDP corresponded to 2.8% directly, and 6% of the total, while in relation to employment it was considered that 2.6% generated directly and 5.5% of the total. Finally, an investment in capital of $1.2 billion, also foreign investment in this tourist activity, represented 5.01% of the totalForeign direct investment (FDI) in this period Continuing, with the indicators of the Ministry of Tourism, international arrivals, according to nationality from January to December 2018, have reached 2.4 million people, with an increase of 50.9% compared to 2017, generating $1,878.6 million for the tourism industry and an average expenditure per person of $1287. The main issuing markets are the United States, Colombia, Peru, and Spain. Another important fact is that 44.4% are arrivals by air [ 28 ]. The aforementioned data are complemented by Gonz á lez [ 29 ], who points out to a specific destination, and shows that Quito, Ecuador, has negative records in the three indicators. The occupancy rate decreased by 1.3% to 58.3%; the average daily rate in dollars dropped by 5.1% (US$ 94.54) and the RevPAR by 6.3% (US$ 55.11) Regarding the hotel industry, for 2018, it relied on a wide network of buildings, including a remarkable presence of international franchises, located mostly in cities such as Quito (Pichincha province), Guayaquil (Guayas province), Cuenca (Azuay province), as well as the Galapagos Islands. To a lesser extent, these hotels are also located in other cities of the country (see Table 1 ). On the other hand, this industry absorbs a significant amount of labor, observing that the largest of these are men, and their distribution behaves, approximately, related to the number of hotels in the province This o ff er of high-quality lodging has had a very positive e ff ect on the growth that, over the last few years, tourism has experienced in Ecuador. In 2018, tourism drew $2.398 billion into the Ecuadorian economy, which makes it the third revenue source not related to oil, after exports of banana and shrimp [ 27 ]. Likewise, tourism is one of the most important quality employment sources, both direct and indirect, with a positive impact on the design of models aimed at the economic and social development As for employment, this sector has generated in the first quarter of 2018, a total of 491,698 employment opportunities, including lodging and food services, which, in macroeconomic figures, represents 6.3% of the total of employees in the general economy of the country. It is worth mentioning that this activity includes the sectors of lodging and food services, and it is among the five industries with the most contribution to national employment We need to mention that there is information in Ecuador about hotel indicators only from 4- and 5-star hotels. The Hoteles de Quito Metropolitano (HQM) group is the one that generates 4- and 5-star hotel activity in this city. Their last report was released in December 2018 and, evidently, this is a major limitation regarding information about regulated lodging. For instance, an indicator of the hotel industry that is considered a common term in this sector is the RevPAR, which allows us to know the revenue per variable room—and it is not applied in all the hotel industry.

Sustainability 2020 , 12 , 1590 7 of 18 Table 1. Distribution of lodging buildings by class and people, lodged by gender and province, for the year 2018 PROVINCE CLASS PERSONNEL EMPLOYED ***** LUXURY **** FIRST *** SECOND ** THIRD * FOURTH ONLY TOTAL LODGING Number of Buildings Male Female Total Azuay 100 103 37 6 311 759 1079 1838 Bol í var 3 8 23 3 2 39 91 81 172 Cañar 22 33 3 58 102 125 227 Carchi 4 5 14 4 27 92 78 170 Cotopaxi 11 30 59 15 115 206 304 510 Chimborazo 1 6 23 39 35 9 113 288 283 571 El Oro 2 23 43 61 4 133 608 504 1112 Esmeraldas 1 31 167 154 3 2 358 905 964 1869 Guayas 11 48 138 212 12 3 424 3457 2439 5896 Imbabura 2 34 53 61 10 3 163 588 664 1252 Loja 2 16 59 78 11 2 3 62 510 945 Los R í os 1 7 28 50 10 96 226 215 441 Manab í 3 47 149 388 27 7 621 1833 1508 3341 Morona Santiago 3 17 51 5 2 78 138 168 306 Napo 2 12 53 72 18 13 170 415 385 800 Pastaza 2 15 20 18 1 56 93 131 224 Pichincha 17 144 286 369 52 6 874 4359 3139 7498 Tungurahua 1 35 48 219 39 3 345 736 863 1599 Zamora Chinchipe 1 12 25 7 45 69 91 160 Gal á pagos 2 28 203 2 48 283 517 770 1287 Sucumb í os 2 3 26 86 11 3 131 421 430 851 Orellana 1 4 16 69 15 5 110 405 357 762 Santo Domingo de los Ts á chilas 8 11 29 64 1 113 273 342 615 Santa Elena 2 28 92 181 36 7 346 1037 823 1860 TOTAL 53 560 1604 2398 439 123 5177 18,053 16,253 34,306 Source: General Coordination of Statistics and Research of the [ 1 ]. Tourism Statistics Report 2012–2016.

Sustainability 2020 , 12 , 1590 8 of 18 In Ecuador, this theme is scarce. In this respect, Dencker, 2002, as cited by Herrera Rivas and Espinoza [ 30 ], states: “The scientific study of tourism is new, multidisciplinary and interdisciplinary in essence. It is immersed in an environment influenced by paradigms and studied by some disciplines, with theoretical references of almost all of the social sciences ( . . ) for studying tourists’ motivation, preferences and attitude, their social and economic status, their cultural level and creating the need for traveling and knowing” (p. 37) This situation is evidenced in Ecuador since the studies conducted in the sector are focused on the main cities and tourist destinations of the country. To a certain extent, this research does not allow us to observe an integral approach of the sector that indicates multi and interdisciplinary research, as Decker points out To finish this analysis of the hotel industry, it is important to consider that this sector has currently implemented several strategies regarding innovation and technology for the trading, sale, and loyalty process. In addition, there are important online platforms that help businesses generate an important demand for them. Scott (as cited by [ 31 ], in the study “Consumer Research Uncovers Travelers’ Online Search and Booking Behaviors” (conducted in the United States for the company TrustYou), mentions that 91% of travelers use Google as the main search engine to find a hotel. In addition, 77% of travelers look for “accommodation” and “location” as keywords on the search engine, and 57% of the searches are done with the word “hotel”. Likewise, Brandwatch (as cited by [ 31 ]), published interesting data about the use of social networks as their sales channels, indicating that in the year 2016, social networks had 2.4 billion active users. Additionally, 91% of the retail companies use social networks as their sales channels. On average, users had 5.54 social networks accounts. These events happen due to the technological era we live in. Moreover, in current production processes, we must incorporate innovation and technology as di ff erentiating factors of the industry. This increases productivity of resources with the purpose of generating quality supply in the tourist destination [ 31 , 32 ]. Although Ecuador has won several awards, in context of the World Travel Awards, there is no prior empirical evidence for the hotel industry, where cities with characteristics of tourism vocation, and greater development, have clear predominance in the promotion of luxury hotels and first class. However, this condition (in some cities) does not represent this development. On the other hand, in various cities, there is also growth of companies of reduced sizes and categories, without proper planning. These considerations are valid when studying the Ecuadorian hotel industry. It is timely and important because Ecuador, in a few years, must bet on proper growth of the tourism sector. In a broad sense, we only find the recent works of Serrano and Pucha [ 33 ], Mel é ndez [ 34 ], and Veloz y Vasco [ 35 ], although they only focus on the hotel industry in specific places The National Tourism Plan 2030, proposed by the Ministry of Tourism, sets out the main strategies for development and investment in the tourism sector, in which, with the correct intervention of the public and private sectors and society in general, they could expect a growth in the medium and long term. Currently, tourism has become the third source of non-oil revenues, after bananas and shrimp—importance that is recognized by the extraordinary biodiversity that creates a natural and cultural heritage for current and future generations (proposed in two words as unique places). To this is added that, at present, for the development of tourist products in di ff erent destinations, the new tourist, or hiker, who is willing to pay more for the incorporation of true intangible value to their travel experience, should be considered 4. Materials and Methods The financial data utilized for determining the e ffi ciency of the hotel companies in Ecuador were obtained from the Superintendence of Companies, Securities and Insurance (SUPERCIAS), while data related to categorization and personnel were supplied by the Ecuadorian Ministry of Tourism As for the categorization, the fostering of tourism in Ecuador has caused an increase in hotels with the purpose of meeting the needs of demanding users. In this respect, these hotels have been classified into luxury, first, second, third, and fourth class.

Sustainability 2020 , 12 , 1590 9 of 18 By the year 2017, 4144 hotels were registered in the Ministry of Tourism in the form of companies Most of these hotels are in the highlands and are categorized as third class. In addition, most of these companies do not provide information to the SUPERCIA. The code CIUU “I 5510.01” reports 303 companies by the year 2012, 368 companies by 2016, and 320 by 2017 Only the hotels that had provided financial information to the SUPERC Í A for all the years of studies were selected. We obtained data from all types of hotels and from the provinces in which tourism plays an important role in the economy. With the information obtained, we made a balanced panel data based on 735 observations from 147 hotels for the period 2013–2017.The distribution by geographic zone of the hotels can be seen in Table 2 ; most of them are in the highlands. The category that prevails is first class; this can be caused by the fact that the financial data were obtained from SUPERCIA, and, therefore, this information must have been supplied by the companies registered Table 2. Distribution of hotels in Ecuador by region and class Region Class Luxury First Second Third Total Coast 8 27 14 10 59 Highlands 6 45 13 5 69 Orient 0 2 4 2 8 Islands 0 8 3 0 11 Total 14 82 34 17 147 It is important to consider the distribution of the sample by province since, despite the aforementioned regional distribution, it would be interesting to observe the results in the provinces. Ecuador has 24 provinces, and, as seen in Table 3 , 12 provinces are part of the sample, including Guayas and Pichincha, which are the most important in Ecuador’s economy. In this sample, we can observe that many hotels are in the provinces with the most economic development in Ecuador. Nevertheless, the province of Pichincha exhibits a major di ff erence as to first-class hotels. It is worth mentioning that luxury hotels are present in provinces with the highest economic growth, while first-class hotels constitute more than 50% of the sample. This situation is closer to the actual situation of the country Table 3. Distribution of hotels in Ecuador by province and class Province Luxury First Second Third Total Azuay 2 4 1 0 7 Chimborazo 0 3 0 0 3 El Oro 1 3 0 1 5 Esmeraldas 0 2 0 1 3 Gal á pagos 0 8 3 0 11 Guayas 5 16 10 6 37 Imbabura 0 5 1 0 6 Manab í 1 3 3 1 8 Pichincha 4 27 11 5 47 Santa Elena 1 3 1 1 6 Sucumb í os 0 2 4 2 8 Tungurahua 0 6 0 0 6 Total 14 82 34 17 147 In the determination of e ffi ciency, there has not been an agreement related to the variables to be used in order to measure inputs and outputs. Some authors have suggested the use of variables that can be physically measured, Bucklin [ 36 ], while others recommend the use of variables quantified in monetary units, with the purpose of determining economic e ffi ciency and profitability, Duhan [ 37 ].

Sustainability 2020 , 12 , 1590 10 of 18 Because the hotel industry is based on service companies, the demand has to be met by using a series of inputs. For this purpose, this sector relies on appropriate infrastructure and specialized personnel. The infrastructure will be more important in high-quality hotels, while specialized labor will play a major role in low-quality hotels As output, the variable selected in the present study has been revenue, in order to measure the e ffi ciency of the Ecuadorian hotel sector, which represents all the resources obtained by the hotel companies as a result of providing their services expressed in American dollars. A similar variable has been employed by Barros et al. and Yu [ 38 – 40 ]. The inputs used are total personnel (Total_personnel), the non-current assets (Act_no_corri) and Consumption. The total personnel (Total_personnel) represents the total number of people who work in the hotel, including administrative and service personnel (Higuerey, Trujillo and Gonz á lez [ 41 ] and De Jorge and Su á rez [ 39 ]). The non-current assets (Act_no_corri) refers to the money invested in properties, buildings, and equipment, as well as other non-current assets necessary for the hotel to provide services expressed in American dollars. The Consumption represents the necessary expenses incurred by the hotel, excluding personnel costs, in order to provide services. These expenses were determined by adding operating costs and subtracting the total of personnel costs. As for revenue, it consists of adding revenue from activities and other types of revenue The descriptive statistics of the sample under study is presented in Table 4 . It is noteworthy that there is a major di ff erence as to the revenue to be raised (revenue) since the sample includes luxury and first-class hotels, which generates large amounts of revenue. On the other hand, third-class hotels are within the category of small businesses, so their revenue is much lower. This situation is also observed in the amount of personnel. Whereas small hotels are owned by the same people or families who work there, big hotels require the presence of more personnel, and in many cases, specialized personnel Table 4. Descriptive statistics of the sample Variable Observations Mean Standard Deviation Min Max Revenue 735 1,442,053.13 2,985,100.26 4853.88 22,215,242.00 Total_personnel 735 41.26 95.43 2.00 947.00 Act_no_corri 735 2,291,406.17 6,044,310.53 136.44 41,533,676.00 Consumption 735 453,888.14 904,318.79 0.00 6,798,999.00 Act_no_corri represents the variable of capital in the present study. We can also see a major di ff erence. Likewise, we have Consumption, which is the variable that absorbs the rest of the necessary expenses that the hotels incur to provide services Table 5 shows the correlation that exists between the variables, observing that there is a high correlation between the variables used in this study—the highest being that of Revenue with Act_no_corri, since the income of this type of company depends directly on the non-current assets they own Table 5. Correlation matrix of the sample Variable Revenue Total_personnel Act_no_corri Consumption Revenue 1 Total_personnel 0.8812 1 Act_no_corri 0.9262 0.8508 1 Consumption 0.9893 0.882 0.9148 1 It is necessary to point out that the method applied for determining e ffi ciency is the Data Envelopment Analysis (DEA). This technique, whose precursor was Boles [ 42 ], uses linear programming algorithms for frontier estimation. In its implementation, we must consider that a business is e ffi cient

Sustainability 2020 , 12 , 1590 11 of 18 if there is not another one, or a combination that provides more than some product, given the inputs; or uses less of some input, given the outputs. The advantage is that this technique does not impose an a priori functional form on the data, which can accommodate multiple inputs and outputs, and generate information about “reference businesses” for each of the ine ffi cient businesses. In other words, the businesses have the following aspects that are similar to an e ffi cient business: output mix, input mix, and scale operations. As mentioned in the literature review, several studies on the e ffi ciency of the hotel industry have used this method with some variations ([ 11 – 16 , 18 ]). Recently, the DEA model has been used in other sectors, with some modifications, but maintaining the principles of the methodology. In the energy sector, Chai, Fan, and Han [ 43 ] use the DEA with some novelties to determine the e ffi ciency in this sector, justifying its use in that you have great advantages in avoiding subjective factors, simplifying algorithms, and reducing errors; it gradually developed into one of the most commonly used tools for evaluation e ffi ciency in many fields. This same DEA model has also been used in the environmental sector, by Łozowicka [ 44 ] to measure the e ffi ciency of European community countries. In the water industry, Sun, Yang, Zhang, and Chen [ 45 ] evaluated the e ffi ciency of the use of this product in the municipalities of China, using the traditional DEA model, but modifying the indices used. In the hotel sector, Lee, Kuo, Jiang, and Li [ 46 ] evaluate the e ffi ciency of this sector in Taiwan. To do this, they used the DEA and added a mega frontier, modifying the directional distance function in the meta-frontier model in order to consider expanding outputs, contracting inputs, and fixed quasi-fixed inputs in the short-run Traditionally, there are two DEA models, constant returns to scale (CCR) and variable returns to scale (BCC). In this work, the CRS model is used with an input orientation. Being the first work carried out on the e ffi ciency of the tourism sector in Ecuador, it has been considered convenient to use this model, so that it is easy to understand and useful for tourism regulators and planning agencies in Ecuador. The formulation is as follows: Min ef, λ efi (1) Subject to: − yi + Y λ ≥ 0 (2) ef xi − X λ ≥ 0 (3) λ ≥ 0 (4) where: ef is e ffi ciency, λ is a constant vector, X is a matrix with all the inputs of all the companies, Y is a matrix of all the outputs of the companies, xi is a vector of the inputs of the company, i, yi is a vector of the outputs of the company, i and i represents the company i -th On the other hand, the total factor productivity (TPF) is defined as the result of dividing an output index by an input index, in which M products and K inputs can be used, thus adapting to multiproductive companies (Coelli et al. 2003) [ 47 ]. Both indices are generally defined as a weighted sum of all outputs or inputs, respectively. The formulation is as follows: TPF = P M m = 1 a m Y m P K k = 1 b k X k (5) where a and b are weights that depend on the importance of each input or output in the industry. On the other hand, the measures of change in TPF (CTPF) can be divided into three components: change in technical e ffi ciency (CET), technological change (CT), and change in e ffi ciency of scale (EEC) [ 47 ]; all of them being multiplicative, expressing themselves as follows: CTPF = CET ∗ CT ∗ CEE (6)

Sustainability 2020 , 12 , 1590 12 of 18 5. Results In this section, we will present the results related to e ffi ciency and productivity. For the former, we will show the change that each one of the provinces has had in the years under study. Afterwards, we will present the results of productivity by province and by class in order to observe which hotels are the most productive 5.1. Results Related to E ffi ciency Table 6 displays the results of e ffi ciency in the provinces and years under study in Ecuador by using the approach by Banker, Charnes, and Cooper [ 10 ]. Likewise, the average e ffi ciency by year and province is presented Table 6. Average e ffi ciency by province and years Province Years 2013 2014 2015 2016 2017 Total Azuay 0.808 0.688 0.663 0.67 0.661 0.698 Chimborazo 0.81 0.668 0.681 0.754 0.763 0.735 El Oro 0.628 0.497 0.555 0.543 0.519 0.548 Esmeraldas 0.602 0.594 0.484 0.422 0.526 0.525 Gal á pagos 0.716 0.767 0.712 0.752 0.754 0.740 Guayas 0.713 0.624 0.591 0.58 0.562 0.614 Imbabura 0.663 0.572 0.608 0.576 0.596 0.603 Manab í 0.646 0.495 0.508 0.462 0.471 0.516 Pichincha 0.725 0.717 0.711 0.72 0.682 0.711 Santa Elena 0.629 0.596 0.547 0.561 0.491 0.565 Sucumb í os 0.755 0.791 0.781 0.726 0.73 0.756 Tungurahua 0.671 0.608 0.613 0.661 0.604 0.631 Average 0.71 0.662 0.646 0.645 0.626 0.658 It is important to remark that the average e ffi ciency in the years under study has declined from the year 2013 to 2017. This decrease was stronger in 2014, dropping approximately 4 percentage points On the other hand, it can be seen that by the year 2013, the three most e ffi cient provinces were Chimborazo, Azuay, and Sucumb í os, which hold first, second, and third place, respectively. It is interesting to observe in Figure 1 that the tendency of the lines indicates that the businesses in the first positions of e ffi ciency change positions over the years. Some businesses are in positions below average, while others move down and up again in position over the years Sustainability 2020 , 12 , x FOR PEER REVIEW 12 of 18 we will present the results of productivity by province and by class in order to observe which hotels are the most productive. 5.1. Results Related to Efficiency Table 6 displays the results of efficiency in the provinces and years under study in Ecuador by using the approach by Banker, Charnes, and Cooper [10]. Likewise, the average efficiency by year and province is presented. Table 6. Average efficiency by province and years. Province Years 2013 2014 2015 2016 2017 Total Azuay 0.808 0.688 0.663 0.67 0.661 0.698 Chimborazo 0.81 0.668 0.681 0.754 0.763 0.735 El Oro 0.628 0.497 0.555 0.543 0.519 0.548 Esmeraldas 0.602 0.594 0.484 0.422 0.526 0.525 Galápagos 0.716 0.767 0.712 0.752 0.754 0.740 Guayas 0.713 0.624 0.591 0.58 0.562 0.614 Imbabura 0.663 0.572 0.608 0.576 0.596 0.603 Manabí 0.646 0.495 0.508 0.462 0.471 0.516 Pichincha 0.725 0.717 0.711 0.72 0.682 0.711 Santa Elena 0.629 0.596 0.547 0.561 0.491 0.565 Sucumbíos 0.755 0.791 0.781 0.726 0.73 0.756 Tungurahua 0.671 0.608 0.613 0.661 0.604 0.631 Average 0.71 0.662 0.646 0.645 0.626 0.658 It is important to remark that the average efficiency in the years under study has declined from the year 2013 to 2017. This decrease was stronger in 2014, dropping approximately 4 percentage points. On the other hand, it can be seen that by the year 2013, the three most efficient provinces were Chimborazo, Azuay, and Sucumbíos, which hold first, second, and third place, respectively. It is interesting to observe in Figure 1 that the tendency of the lines indicates that the businesses in the first positions of efficiency change positions over the years. Some businesses are in positions below average, while others move down and up again in position over the years. Figure 1. Tendency of the average efficiency by province and years. Figure 1. Tendency of the average e ffi ciency by province and years.

Sustainability 2020 , 12 , 1590 13 of 18 In the case of the hotel businesses in Chimborazo, this province occupied the first position in the first year under study, disappeared from the three first positions in the years 2014 and 2015, and reappeared to occupy the first position in the last years of the study As for the province of Sucumb í os, it was in the third position in the initial year, moved up to the first position in the years 2014 and 2015, and returned to the third position in the last years of the study The Galapagos Islands, which are one the most important tourist attractions in Ecuador, occupied the fifth position in the year 2013, and then kept the second position in the rest of the years of the study, while the lowest positions were occupied by the provinces of Esmeraldas, El Oro, and Santa Elena It can be noticed that, in the years under study, in average (see Figure 1 ), the hotels of the provinces of Galapagos and Sucumb í os are the most e ffi cient ones. They have a large visitor flow, especially Galapagos, although the oil-based economy of Sucumb í os needs a better hotel infrastructure Regarding the e ffi ciency by hotel category (luxury, first, second, and third), it can be seen in Table 7 , that in many of the provinces the first and third categories are present. In this sense, luxury hotels do not stand out as those of greater e ffi ciency, in the years in studies. It is noted that the third category hotels, on average, are the most e ffi cient in most of the provinces of the sample studied Table 7. Average e ffi ciency by province, class, and years Province Class 2013 2014 2015 2016 2017 Average Azuay Luxury 0.748 0.631 0.547 0.536 0.515 0.5954 First 0.885 0.821 0.820 0.835 0.797 0.8316 Second 0.619 0.274 0.271 0.282 0.414 0.372 Chimborazo First 0.810 0.668 0.681 0.754 0.763 0.7352 El Oro Luxury 0.663 0.558 0.542 0.561 0.554 0.5756 First 0.635 0.457 0.572 0.517 0.486 0.5334 Third 0.573 0.554 0.517 0.603 0.583 0.566 Esmeraldas First 0.680 0.624 0.497 0.553 0.545 0.5798 Third 0.447 0.534 0.459 0.161 0.488 0.4178 Gal á pagos First 0.718 0.790 0.738 0.738 0.769 0.7506 Second 0.710 0.705 0.643 0.789 0.714 0.7122 Guayas Luxury 0.662 0.618 0.601 0.608 0.625 0.6228 First 0.694 0.611 0.555 0.559 0.560 0.5958 Second 0.747 0.597 0.615 0.594 0.516 0.6138 Third 0.747 0.711 0.636 0.592 0.595 0.6562 Imbabura First 0.632 0.549 0.579 0.559 0.564 0.5766 Second 0.815 0.688 0.753 0.658 0.757 0.7342 Manab í Luxury 0.699 0.637 0.658 0.609 0.588 0.6382 First 0.536 0.285 0.373 0.370 0.422 0.3972 Second 0.620 0.489 0.427 0.326 0.304 0.4332 Third 1 1 1 1 1 1 Pichincha Luxury 0.798 0.781 0.772 0.761 0.693 0.761 First 0.679 0.692 0.674 0.684 0.659 0.6776 Second 0.758 0.733 0.748 0.756 0.698 0.7386 Third 0.838 0.768 0.776 0.808 0.763 0.7906 Santa Elena Luxury 0.562 0.572 0.532 0.500 0.530 0.5392 First 0.679 0.523 0.521 0.629 0.560 0.5824 Second 0.633 0.565 0.448 0.480 0.558 0.5368 Third 0.540 0.869 0.741 0.497 0.179 0.5652 Sucumb í os First 0.634 0.631 0.748 0.725 0.719 0.6914 Second 0.811 0.828 0.781 0.714 0.718 0.7704 Third 0.764 0.880 0.815 0.750 0.765 0.7948 Tungurahua First 0.671 0.608 0.613 0.661 0.604 0.6314

Sustainability 2020 , 12 , 1590 14 of 18 In the province of Manab í , which was struck by an earthquake in 2016, we can see that from that year, the average e ffi ciency of all the categories of hotels has dropped. This decrease a ff ects the general average e ffi ciency of hotels in Ecuador 5.2. Results Related to Productivity It is also important to highlight the change in total factor productivity (TPF); which consists of technical e ffi ciency changes (CET), technological change (CT), change in pure technical e ffi ciency (CETP), and change of e ffi ciency in scale (CEE). It can be observed that the most important change in TPF was present in the province of Galapagos, which relies on a better tourist infrastructure, and it is considered as one of the first options to visit. Table 8 shows that this province has experienced the most important change in technical e ffi ciency and CETP. The province of Galapagos is followed by the provinces of Chimborazo (whose main tourist attraction is the Cotopaxi) and Santa Elena, which have 3 and 6 hotel businesses respectively Table 8. Change in the Total Factor Productivity (TPF) Province CET CT CETP CEE TPF # of Businesses Ranking Azuay 0.946 1.037 0.955 0.991 0.981 7 10 Chimborazo 0.981 1.048 0.988 0.992 1.027 3 2 El Oro 0.955 1.069 0.948 1.007 1.020 5 4 Esmeraldas 0.971 1.019 0.976 0.994 0.990 3 9 Gal á pagos 1.010 1.025 1.009 1.002 1.035 11 1 Guayas 0.934 1.049 0.964 0.969 0.980 37 11 Imbabura 0.948 1.071 0.988 0.955 1.004 6 7 Manab í 0.918 1.049 0.945 0.966 0.963 8 12 Pichincha 0.987 1.022 0.990 0.997 1.009 47 6 Santa Elena 0.926 1.117 0.984 0.941 1.021 6 3 Sucumb í os 0.993 1.018 0.989 1.005 1.012 8 5 Tungurahua 0.975 1.019 0.988 0.988 0.993 6 8 Average 0.962 1.045 0.977 0.984 1.003 147 On the other hand, the provinces of Manab í and Guayas occupy the last positions in this study regarding the change in total factor productivity. These positions are influenced by a low CTE since they have one of the most relevant technological changes. In other words, even though these businesses have experienced the most important technological changes, this technology has not been fully exploited, which a ff ects their technical e ffi ciency With respect to the province of Pichincha, it is in the sixth position, and it is represented by 47 businesses. In this province, we can find major tourist attractions, its emblem the historic center. Moreover, the main buildings of the central government are located in there, which contributes to a high visitor flow It is necessary to mention that, the hotels that operate in the regions and zones of Ecuador with the tourist attractions in higher demand are the ones that use their inputs [ 11 , 31 ] in a better way; thus, contributing to improve the e ffi ciency indexes In summary, it can be seen that the companies of the hotel industry in Ecuador have a low e ffi ciency on average, with a high level of hotels, which, due to their influx of customers and the areas in which they are located, make the high influx of customers, shown through income, allowing them to improve their use of resources. On the other hand, the best change in factor productivity is owned by hotels that are in the tourist areas of Ecuador, such as the provinces of Galapagos and Chimborazo 6. Discussion and Conclusions The average provincial e ffi ciency is interesting since it demonstrates the behavior of the hotel industry in Ecuador. It is appreciated that the hotels that have obtained the greatest e ffi ciency are those

Sustainability 2020 , 12 , 1590 15 of 18 located in the provinces with the greatest tourist development, coinciding with Sellers and Casado [ 12 ], in which the hotels located in the tourist areas of Spain were the most e ffi cient. However, authors such as Alberca and Parte [ 48 ] found that hotels located in the provinces with the greatest economic movement were more e ffi cient On the other hand, in terms of those factors that have influenced the e ffi ciency of Ecuador’s hotels, it is appreciated that size is not an important characteristic when measuring e ffi ciency, but the location, in tourist areas, a ff ects in a better way the e ffi ciency. Not coinciding with Alberca and Parte [ 49 ], which shows that the determinants of e ffi ciency in the hotel industry in Spain is significantly influenced by regional and corporate factors, such as the tourist flow driven by each region, the location of the hotel, and the hotel size The tourist situation in Ecuador does not show a marked seasonality as in European countries, but its attractions are maintained in most months of the year; this is not limiting for the service provided by the hotel industry. As in Italy, where the mostly ine ffi cient hotels were those that were located in areas with strong seasonality [ 15 ]. On the other hand, in terms of total factor productivity, it can be seen that, in Ecuador, on average, this change is highly influenced by technological change (TC), followed by the change in e ffi ciency of scale (CEE), which favors hotels, since on average the TPF has increased by 0.03%. A favorable situation, which was not appreciated in hotels in Spain; Alberca and Parte [ 48 ] mentioned that the change in TPF was influenced by technical e ffi ciency, but that the national average of that country su ff ered a decrease in TPF The present study measures the technical e ffi ciency and the change in productivity of the businesses in the hotel industry of Ecuador from 2013 to 2017. This is the first work presented in the e ffi cacy literature about the Ecuadorian hotel industry, presenting technical e ffi ciency and the change in total factor productivity (TPF). It can be observed that the hotel infrastructure of Ecuador has more presence in hotels of lower class. Most of the hotels are in the provinces with more economic and political development In order to measure the technical e ffi ciency, the output used was the revenue while the inputs were total personnel (Total_personnel), the non-current assets (the variable of capital) (Act_no_corri), and the Consumption, (the variable that absorbs the rest of the necessary expenses of the hotel in order to provide services). The DEA model, constant returns to scale (CCR), was used with orientation to the inputs, due to its better adaptation to the tourism sector. That is a methodology of easy interpretation (before people who did not have great knowledge of the interpretation of this and its results); thus, facilitating the use of tourism planning and control agency members in Ecuador We can say that that average technical e ffi ciency of the hotels from the sample of Ecuador was stable, if we consider that its variation in the years studied is similar (with a tendency to decrease). Because this drop is strong in some provinces, despite an increase in other provinces, the general average tends to decrease The results indicate that, when evaluating technical e ffi ciency, third class hotels in Ecuador are the most e ffi cient ones, according to Oliveira et al. [ 19 ]. These results di ff er from studies conducted in developed countries, where big hotel chains stood out in terms of technical e ffi ciency It is worth mentioning that Ecuador has experienced many changes in its economic policies The strategy of developing the hotel industry is an attempt to improve the Ecuadorian economy In this respect, there has been funding for lodging services, and “lower class” hotels are the ones who have received these resources. However, there is no improvement in the technical e ffi ciency since, on average, it decreased in the years under study It can also be noticed that hotels have more presence in zones with tourist attractions in high demand. These hotels use their resources in a better way and contribute to improve e ffi ciency indexes Furthermore, we have the dispersion of data oriented to the dimensions in hotels. Their locations are limitations that hinder a better comparability of the sample under study, since there is no information from all the hotels in Ecuador.

Sustainability 2020 , 12 , 1590 16 of 18 The management of hotels located in provinces with results of ine ffi ciency must enhance their procedures in order to provide incentives to increase technical e ffi ciency. It would be interesting to change strategies in order to take advantage of production factors in a better way and adapt them to a specific region and market size The contribution of this research, in addition to the use of the DEA methodology to the Ecuadorian hotel industry, lies in the inputs that clearly show the di ff erent factors that these companies use to provide their services. In addition to this are the di ff erent theories that have been developed in the matter of selecting the inputs for measuring e ffi ciency It is important that these results be considered in matters of public policies. Despite the e ff ort and investment in some provinces in Ecuador, the e ffi ciency of hotels in the country has not increased For this reason, there should be public policies that foster the e ffi cient management of the production factors in the Ecuadorian hotel industry Based on these results, we can highlight the importance of further studies related to e ffi ciency of the hotel industry. Other interesting variables can be included, such as service quality, which was not available as of conducting the present study Likewise, it would be important to incorporate some control variables, such as market size, tourist attractions, and the gross domestic product of the province. In addition, we suggest the use of di ff erent techniques for measuring the e ffi ciency, such as the stochastic frontier analysis and the distance function, which have some advantages in comparison with DEA. Moreover, techniques and variables that have been used in other sectors, such as the water industry, should also be implemented This work is not exempt of limitations, which have to be contemplated in future works that can be carried out, due to the scarce information that is presented to the SUPERCIA. There may be some variables that are very important, and that have not been taken into account (e.g., the number of rooms and physical units—variables that, in other studies, have referenced their importance in e ffi ciency studies). On the other hand, the financing they receive, as well as other economic variables, could be used to visualize the Ecuadorian hotel industry, and these results can be used by the government agency that governs Ecuador’s tourism and hotel policy Author Contributions: All authors contributed equally to this paper. All authors have read and agreed to the published version of the manuscript Funding: This research received no external funding Acknowledgments: We appreciate the help of the Ecuadorian Superintendence of Companies, Securities and Insurance (SUPERCIAS) and the Ministry of Tourism, since they provided us with the data from their websites; and Gonzalez Torres Paul Fernando, PhD, Language Acquisition in Multilingual Settings, who translated this work Conflicts of Interest: The authors declare no conflict of interest References 1 Coordinaci ó n General de Estad í stica e Investigaci ó n del Ministerio de Turismo Bolet í n de Estad í sticas Tur í sticas. 2017. Available online: https: // servicios.turismo.gob.ec / descargas / Turismo-cifras / AnuarioEstadistico / Boletin-Estadisticas-Turisticas-2012-2016.pdf (accessed on 11 November 2019) 2 Farrell, M.J. The measurement of productive e ffi ciency J. R. Stat. Soc. Ser. A 1957 , 120 , 253–290. [ CrossRef ] 3 Koopmans, T.C. An analysis of production as an e ffi cient combination of activities Act. Anal. Prod. Alloc 1951 , 13 , 33–97 4 Kundu, S.K.; Contractor, F.J. Country location choices of service multinationals an empirical study of the international hotel sector J. Int. Manag 1999 , 5 , 299–317. [ CrossRef ] 5 Molina-Azor í n, J.F.; Claver-Cort é s, E.; Pereira-Moliner, J.; Tar í , J.J. Environmental practices and firm performance: An empirical analysis in the Spanish hotel industry J. Clean. Prod 2009 , 17 , 516–524 [ CrossRef ] 6 Rodr í guez-Algeciras, A.; Tal ó n-Ballestero, P. An empirical analysis of the e ff ectiveness of hotel Revenue Management in five-star hotels in Barcelona, Spain J. Hosp. Tour. Manag 2017 , 32 , 24–34. [ CrossRef ]

Sustainability 2020 , 12 , 1590 17 of 18 7 Forgacs, G. Brand asset equilibrium in hotel management Int. J. Contemp. Hosp. Manag 2003 , 15 , 340–342 [ CrossRef ] 8 INEC Empresas y Contenido ; INEC: Abuja, Nigeria, 2018 9 Charnes, A.; Cooper, W.W.; Rhodes, E. Measuring the e ffi ciency of decision making units Eur. J. Oper. Res 1978 , 2 , 429–444. [ CrossRef ] 10 Banker, R.D.; Charnes, A.; Cooper, W.W. Some models for estimating technical and scale ine ffi ciencies in data envelopment analysis Manag. Sci 1984 , 30 , 1078–1092. [ CrossRef ] 11 Lado-Sestayo, R.; Fern á ndez-Castro, Á .S. The impact of tourist destination on hotel e ffi ciency: A data envelopment analysis approach Eur. J. Oper. Res 2019 , 272 , 674–686. [ CrossRef ] 12 Sellers-Rubio, R.; Casado-D í az, A.B.; Casado-Diaz, R. Analyzing hotel e ffi ciency from a regional perspective: The role of environmental determinants Int. J. Hosp. Manag 2018 , 75 , 75–85. [ CrossRef ] 13 Chatzimichael, K.; Liasidou, S. A parametric decomposition of hotel-sector productivity growth Int. J. Hosp Manag 2019 , 76 , 206–215. [ CrossRef ] 14 Karakitsiou, A.; Kourgiantakis, M.; Mavrommati, A.; Migdalas, A. Regional e ffi ciency evaluation by input-oriented data envelopment analysis of hotel and restaurant sector Oper. Res 2018 , 24 , 1–18. [ CrossRef ] 15 Pulina, M.; Santoni, V. A two-stage DEA approach to analyse the e ffi ciency of the hospitality sector Tour Econ 2018 , 24 , 352–365. [ CrossRef ] 16 Chaabouni, S. China’s regional tourism e ffi ciency: A two-stage double bootstrap data envelopment analysis J. Destin. Mark. Manag 2019 , 11 , 183–191. [ CrossRef ] 17 Simar, L.; Wilson, P.W. Estimation and inference in two-stage, semi-parametric models of production processes J. Econom 2007 , 136 , 31–64. [ CrossRef ] 18 Xia, B.; Dong, S.; Ba, D.; Li, Y.; Li, F.; Liu, H.; Li, Z.; Zhao, M. Research on the spatial di ff erentiation and driving factors of tourism enterprises’ e ffi ciency: Chinese scenic spots, travel agencies, and hotels Sustainability 2018 , 10 , 901. [ CrossRef ] 19 Ang, S.; Chen, M.; Yang, F. Group cross-e ffi ciency evaluation in data envelopment analysis: An application to Taiwan hotels Comput. Ind. Eng 2018 , 125 , 190–199. [ CrossRef ] 20 Mendieta-Peñalver, L.F.; Perles-Ribes, J.F.; Ram ó n-Rodr í guez, A.B.; Such-Devesa, M.J. Is hotel e ffi ciency necessary for tourism destination competitiveness? An integrated approach Tour. Econ 2018 , 24 , 3–26 [ CrossRef ] 21 Figueroa, V.; Herrero, L.C.; B á ez, A.; G ó mez, M. Analysing how cultural factors influence the e ffi ciency of tourist destinations in Chile Int. J. Tour. Res 2018 , 20 , 11–24. [ CrossRef ] 22 Carrillo, E.; G ó mez, Y. Medici ó n de la eficiencia de hoteles: Caso de estudio en Colombia Rev. Virtual Univ Cat ó lica Norte 2017 , 51 , 143–155 23 Sanjeev, G.M. Measuring e ffi ciency of the hotel and restaurant sector: The case of India Int. J. Contemp. Hosp Manag 2007 , 19 , 378–387. [ CrossRef ] 24 Oliveira, R.; Pedro, M.I.; Marques, R.C. E ffi ciency performance of the Algarve hotels using a revenue function Int. J. Hosp. Manag 2013 , 35 , 59–67. [ CrossRef ] 25 Guetat, H.; Jarboui, S.; Boujelbene, Y. Evaluation of hotel industry performance and corporate governance: A stochastic frontier analysis Tour. Manag. Perspect 2015 , 15 , 128–136. [ CrossRef ] 26 World Tourism Organization 2018 Available online: https: // www.e-unwto.org / doi / pdf / 10.18111 / 9789284419876 (accessed on 5 November 2019) 27 Turismo M de. Rendici ó n de Cuentas. 2018. Available online: https: // www.turismo.gob.ec / wp-content / uploads / 2019 / 02 / Informe-Rendición-de-Cuentas-2018-MINTUR.pdf (accessed on 15 November 2019) 28 Coordinaci ó n General de Estad í stica e Investigaci ó n del Ministerio de Turismo. Indicadores Tur í sticos Informaci ó n Relevante del Turismo en el Ecuador. 2019. Available online: https: // servicios.turismo.gob. ec / descargas / Turismo-cifras / Publicaciones / IndicadoresDeTurismo / Indicadores-de-Turismo-2018-2019.pdf (accessed on 3 February 2020) 29 Gonz á lez, T. Sudam é rica: M á s ocupaci ó n pero menos tarifa media e ingresos por habitaci ó n. Edici ó n Latam 2019. Available online: https: // www.hosteltur.com / lat / 129730_sudamerica-mas-ocupacion-pero-menostarifa-media-e-ingresos-por-habitacion.html (accessed on 15 November 2019) 30 Herrera Rivas, L.M.; Espinoza, E.L. Brecha Entre La Actividad Turrsticohotelera, Y Los Procesos De Formaciin Universitaria En Guayaquil, Ecuador (Situation Processes Qualifications in Hospitality and Tourism Activity, Guayaquil, Ecuador) SSRN Electron J 2016 , 4 , 35–47. [ CrossRef ]

Sustainability 2020 , 12 , 1590 18 of 18 31 Carrera Calder ó n, F.; Vega Falc ó n, V. Impacto de Internet en el sector Tur í stico Rev. UNIANDES Epistem 2017 , 4 , 477–490 32 Fern á ndez, A.; L ó pez, J.; Moreno, L.; Perles, J.; Ram ó n, A.; Such, M. ICE Estrategia e internacionalizaci ó n de la Empresa tur í stica Enero-Febrero 2017. n o 894. Available online: https: // rua.ua.es / dspace / bitstream / 10045 / 68402 / 1 / 2017_Fernandez-Alcantud_etal_ICE.pdf (accessed on 15 November 2019) 33 Serrano, A.L.; Pucha, E.V. Indicadores Tur í sticos: Oferta y demanda de la ciudad patrimonial de Cuenca–Ecuador Rev. Lat. Am. Tur 2018 , 3 , 58–68. [ CrossRef ] 34 Mel é ndez, Á . El despunte (¿o no?) de la industria hotelera Gesti ó n 2015 , 250 , 38–49 35 Veloz Navarrete, C.; Vasco Vasco, J. Calidad en el servicio de las empresas hoteleras de segunda categor í a / Quality in service of hotel companies of second category Cienc. Unemi 2016 , 9 , 19. [ CrossRef ] 36 Bucklin, L.P Productivity in Marketing ; Chicago, I.L., Ed.; AMA: New York, NY, USA, 1978 37 Duhan, D.F A Taxonomy of Marketing Productivity Measures ; American Marketing Association: Chicago, IL, USA, 1985; pp. 229–232 38 Barros, C.P.; Botti, L.; Peypoch, N.; Solonandrasana, B. Managerial e ffi ciency and hospitality industry: The Portuguese case Appl. Econ 2011 , 43 , 2895–2905. [ CrossRef ] 39 De Jorge, J.; Su á rez, C. Productivity, e ffi ciency and its determinant factors in hotels Serv. Ind. J 2014 , 34 , 354–372. [ CrossRef ] 40 Yu, M.; Management, B.L.-T. 2009 Undefined. E ffi ciency and E ff ectiveness of Service Business: Evidence from International Tourist Hotels in Taiwan. Available online: https: // www.sciencedirect.com / science / article / pii / S 0261517708001398 (accessed on 30 October 2019) 41 Higuerey, A.; Trujillo, L.; Gonz á lez, M.M. Has e ffi ciency improved after the decentralization in the water industry in Venezuela? Util. Policy 2017 , 49 , 127–136. [ CrossRef ] 42 Boles, J.N. E ffi ciency squared-e ffi cient computation of e ffi ciency indexes. In Proceedings of the Annual Meeting (Western Farm Economics Association), San Francisco, CA, USA, 27–29 December 1966 43 Chai, J.; Fan, W.; Han, J. Does the Energy E ffi ciency of Power Companies A ff ect Their Industry Status? A DEA Analysis of Listed Companies in Thermal Power Sector Sustainability 2019 , 12 , 138. [ CrossRef ] 44 Łozowicka, A. Evaluation of the E ffi ciency of Sustainable Development Policy Implementation in Selected EU Member States Using DEA. The Ecological Dimension Sustainability 2020 , 12 , 435. [ CrossRef ] 45 Sun, B.; Yang, X.; Zhang, Y.; Chen, X. Evaluation of water use e ffi ciency of 31 provinces and municipalities in China using multi-level entropy weight method synthesized indexes and data envelopment analysis Sustainability 2019 , 11 , 4556. [ CrossRef ] 46 Lee, Y.L.; Kuo, S.H.; Jiang, M.Y.; Li, Y. Evaluating the performances of Taiwan’s international tourist hotels: Applying the directional distance function and meta-frontier approach Sustainability 2019 , 11 , 5773 [ CrossRef ] 47 Coelli, T.; Estache, A.; Perelman, S.; Trujillo, L. Una introducci ó n a las medidas de eficiencia. In Para Reguladores de Servicios P ú blicos y de Transporte ; Banco Mundial en coedici ó n con Alfaomega Colombiana S. A: Bogot á , Colombia, 2003 48 Alberca, P.; Parte, L. Evaluaci ó n de la eficiencia y la productividad en el sector hotelero español: Un an á lisis regional Investig. Eur. Dir. Econ. Empres 2013 , 19 , 102–111. [ CrossRef ] 49 Parte-Esteban, L.; Alberca-Oliver, P. Determinants of technical e ffi ciency in the Spanish hotel industry: Regional and corporate performance factors Curr. Issues Tour 2015 , 18 , 391–411. [ CrossRef ] © 2020 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http: // creativecommons.org / licenses / by / 4.0 / ).

Other Environmental Sciences Concepts:

[back to top]

Discover the significance of concepts within the article: ‘Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel...’. Further sources in the context of Environmental Sciences might help you critically compare this page with similair documents:

Hotel, Technology, Economic development, Capital, Efficiency, Revenue, Subjective factor, Lower class, Government agency, Economic activities, Unique place, First class, Location, Four regions, Economic growth, Customer service, Economic efficiency, Economic policies, Technical efficiency, Strategic value, Public policies, Sustainable development, Technological change, Correlation matrix, Tourist attraction, Energy Efficiency, Sustainability, Strategic plan, Service quality, Social network, Technological era, Tourism industry, Emerging economy, Future work, Corporate governance, Tourism activities, Descriptive statistic, Variable, Productivity, Innovation, Panel data, Financing, Data envelopment analysis, Determinant factor, Production factor, Domestic tourism, Ecuador, Tourism, Economic variable, Water use efficiency, Tourism sector, Hospitality sector, Tourism activity, Hotel sector, Hotel industry, Tourism destination, Tourism planning, Regional perspective, Tourist destination, Tourism policy, Control variable, Operating cost, Small businesses, Financial data, Total Factor Productivity, Stochastic frontier analysis, Financial information, Low efficiency, Productivity Change, Globalized economy, Directional distance function, Ministry of tourism, Sustainable development policy, Tourism potential, DEA model, Planning Agencies, Total personnel, Distance function, Data Envelopment Analysis (DEA), Factor productivity, Variable returns to scale, Tourist infrastructure, Pure Technical Efficiency, Technical Efficiency Change, Constant returns to scale, Technical e ffi ciency, Tourist Development, Tourism Efficiency, Average efficiency, Main Cities, Sales channel, Hotel businesses, Traditional DEA model, Tourism enterprise, Hotel infrastructure, Strong seasonality, Tourist area, Input mix, Easy interpretation, Lodging services.