Robust data envelopment analysis with uncertain date: An analysis to measure hotel efficiency in Crete

Abstract

Due to strict competition in the global market for Tourism services and Hotels in the tourism industry and also the importance of satisfying tourists, awareness about the efficiency of hotel for hotel owners and hotel managers is very important. The purpose of this paper is measuring performance of hotels in Crete by using Robust Data Envelopment analysis (RDEA) technique considering uncertain data. The proposed method of this paper develops a RDEA method with the consideration of uncertainty on output parameters. In order to use robust optimization methods in this article, after the introduction of input and output, we calculate the efficiency of 50 luxury hotel in Crete by means of GAMS software. The method is based on the adaption of robust optimization approaches proposed in the literature. Finally, we compare the performance achieved with previous research on these hotels and our results. It is found that the efficiency decreases, but the level of confidence increases.