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<p>This paper measures the relative efficiencies for hotel and restaurant (H&amp;R) companies operating in India using a Slack-Based model of Data Envelopment Analysis (SBM-DEA). The present paper suggests that the SBM model can give a comprehensive insight into the root causes of administrative inefficiency. The study explores the slack and targets for input and output variables of inefficient companies for operational and strategic management solutions of this important, dynamic, and competitive sector. The study identifies the top performers who act as benchmarks for inefficient H&amp;R companies. The panel data analysis was also done to study the recent trends in this industry. The study finds that new H&amp;R companies are more efficient than older, experienced ones. The slack analysis found that there is enormous scope for improvement in input utilization. The problem of slacks will further increase in this pandemic, and it requires government support to recover from this challenging time. The study recommends that H&amp;R companies in India reevaluate their personnel requirements by enhancing workforce management and professional development. To boost efficiency, the industry must also develop swift and effective strategies for providing high-quality service to repeat customers. The optimized values identified by the SBM-DEA model include efficiency scores, slacks in inputs (capital employed, fixed assets, current assets, operating costs) and outputs (operating income, profit). These optimized values guide managers in reducing input wastage and improving output performance by setting realistic benchmarks.</p>

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Benchmarking the performance of hotels and restaurants in India: a slack-based measure approach

  • 期刊论文

  • 发表日期：

    2025年8月20日

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  • Varun Mahajan,
  • Sandeep Kumar Mogha,
  • R. K. Pavan Kumar Pannala

摘要

This paper measures the relative efficiencies for hotel and restaurant (H&R) companies operating in India using a Slack-Based model of Data Envelopment Analysis (SBM-DEA). The present paper suggests that the SBM model can give a comprehensive insight into the root causes of administrative inefficiency. The study explores the slack and targets for input and output variables of inefficient companies for operational and strategic management solutions of this important, dynamic, and competitive sector. The study identifies the top performers who act as benchmarks for inefficient H&R companies. The panel data analysis was also done to study the recent trends in this industry. The study finds that new H&R companies are more efficient than older, experienced ones. The slack analysis found that there is enormous scope for improvement in input utilization. The problem of slacks will further increase in this pandemic, and it requires government support to recover from this challenging time. The study recommends that H&R companies in India reevaluate their personnel requirements by enhancing workforce management and professional development. To boost efficiency, the industry must also develop swift and effective strategies for providing high-quality service to repeat customers. The optimized values identified by the SBM-DEA model include efficiency scores, slacks in inputs (capital employed, fixed assets, current assets, operating costs) and outputs (operating income, profit). These optimized values guide managers in reducing input wastage and improving output performance by setting realistic benchmarks.