Impact of the COVID-19 Pandemic on United States' Hotel Productivity

Szilvia Vanessza Schalk-Nador

Impact of the COVID-19 Pandemic on United States' Hotel Productivity

Číslo: 1/2024
Periodikum: European Journal of Business Science and Technology
DOI: 10.11118/ejobsat.2023.016

Klíčová slova: COVID-19 pandemic, productivity, Malmquist productivity index, technical efficiency change, technical change

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Anotace: This paper uses the Malmquist Productivity Index to evaluate the impact of the COVID-19 pandemic on hotel productivity. It decomposes total factor productivity change (TFPC) into technical efficiency, pure and scale efficiency, and technical change to conclude on productivity growth before and after the outbreak of the pandemic. 112 hotels in four cities of the United States between 2011–2021 were subject to the analysis, using a multi-input (room, labor, and F&B costs) multi-output (accommodation, F&B, and total revenue) DEA-Malmquist model. The pandemic did not have an adverse effect on hotel productivity change, mainly due to the developments attributed to technological advancements. The paper offers crucial managerial implications. The results of the analysis emphasize the prominence of investment in technology to sustain productivity levels. It supports managers with strategy development and offers decision makers a wider overview of the sector.