Analyzing the Performance of the South Tyrolean Hospitality Sector: A Dynamic Approach

This paper analyzes the dynamic efficiency of the hospitality sector in the province of Bolzano (Italy) to identify similar behavior of firms across the period 2002–2008. A data envelopment analysis is run as a basis to analyze the efficiency evolution of the firms by employing two complementary measures of distance (i.e. correlation and average distances). Via a hierarchical clustering approach, results show the existence of homogeneous groups with similar dynamical characteristics. Structural factors (e.g. size, number of stars and sub‐sector of activity) are found to affect the evolution of hotel efficiency over time. Policy and management implications are drawn from the present analysis.