Plural form chain and efficiency: Insights from the French hotel chains and the DEA methodology

SummaryThis paper compares plural form chains, i.e., chains in which franchised units and company-owned units coexist, in terms of performance and more specifically in terms of efficiency, to predominantly franchised chains and predominantly company-owned ones. The data envelopment analysis (DEA) is implemented to assess the efficiency of hotel chains in the French market. It is shown that plural form chains have a significantly higher average efficiency score than predominantly franchised and company-owned ones. Managerial implications are drawn for managing hotel chains.