Why Negative Outputs are Often Ignored: A Comprehensive Measure of Hotel Performance

Abstract

Studies often overlook negative outputs when measuring hotel performance. This paper investigates the consequences of such omissions by comparing two performance models, one that includes negative outputs (customer complaints) and one that excludes negative outputs. The authors show that excluding negative outputs underestimates the efficiency and productivity results. The results also indicate important differences in the performance ranking of hotels when negative outputs were excluded from the model. The authors also found that hotel size and hotel classification have a minor impact on performance when accounting for negative outputs.