Paper Title
The Value of Data Envelopment Analysis in Hospitality Business: Application of Dea

Abstract
The financial objective of the hospitality business is to maximize the shareholder’s wealth through the achievement of operational efficiency in unit level productivity. A Hotel is consisted with multiple units/outlet or amenities (room, restaurants, banquet, rentals, laundry, etc.,).Theses multiple units are considered as decision making unit(DMU). The lodging operation’s efficiency has received considerable attention by escalating customer value driven expectation and competitive market situation. However, the mechanisms and methods for measuring and analyzing productivity in the lodging area have not scientifically applied and utilized (Charnes, Copper, &Rhodes, 2003; Chen, 2007; Assaf, 2011; Manaskis&Apostolakis, 2013). The purpose of this paper is toapply the technique, known as data envelopment analysis (DEA), as this technique integrates multiple input and output variables simultaneously and produces a single productivity index that compares all multiple units to the most-efficient units in the sample (i.e., DMU). In addition, this approach will observe and identify the multi-period sustained high performance. By observing the performance of DMU of a hotel(s) through DEA-Solver Professional Version 14.0and calculating by Efficiency = Results Obtained /Resources Used = Weighted Sum of Outputs /Weighted Sum of Inputs = u1O1j+u2O2j+Lv1I1j+v2I2j+L. The annual report contains total number of rooms, available room, rack rate, average daily room rate, occupied room, will be unit of analysis. This paper will make two important contributions to the lodging operators. First, it applies a framework utilizing three operating variables (product efficiency, product effectiveness, and service effectiveness). Second, it analyzes the performance of revenue management in the context of DMU’s forecasting methods since this paper will measure management capabilities such as booking and forecasting and to determine whether it integrates other onsite services that impact the operational effectiveness includingfood and beverage operations, housekeeping (labor control),etc. Keywords - Data Envelopment Analysis, Decision Making Unit, Product Effectiveness, Product Efficiency, Service Effectiveness.