Performance of Chinese hotel segment markets: Efficiencies measure based on both endogenous and exogenous factors

The hotel industry is a sector of growing significance, and its development is closely related to the regional economy; however, the industry's performance, especially its segment markets are seldom evaluated considering both the hotel and regional situation, which leads to inappropriate business decisions. This paper provides a conceptual understanding of the influence of regional factors on hotel development. Using a super-efficiency slack-based measure in a data envelopment analysis method, this study examines the regional operational efficiency of the mainland China hotel industry, an emerging hospitality market. Key regional factors are screened out by principal component analysis. This study provides an approach for improving the decision-making process of hotel managers by identifying the best performers in the sector to understand and discriminate between different occupancy rates and room prices as sources of performance enhancement. The findings elucitate that there are versatile efficiencies in China's regional hotel market segments.