Using data envelopment analysis to measure hotel efficiency in Crete

The present paper studies the relative efficiency between hotels operating under a brand and hotels operating independently, in the island of Crete, Greece, using the Data Envelopment Analysis. Interestingly enough, we find that nationally branded hotels are the relatively most efficient; internationally branded are the least efficient, while those operating under a local brand and the independent ones lie in between. This efficiency ranking can be explained by the interplay between operating under a brand and being to changes in the local market�s conditions. We also investigate the inefficiency causes and make suggestions for improvements, in the transformation of inputs to outputs, for each type of hotels studied.