MEASURING EFFICIENCY AND BENCHMARKING CLASSIFIED TWO - FIVE STAR HOTELS IN NAIROBI AND MOMBASA, KENYA

The purpose of this study was to measure the relative efficiency of the hotels in Nairobi and Mombasa using Data Envelopment Analysis. The study was a longitudinal survey in which data are collected for periods; 2007, 2008 and. The study was limited to two-five star hotels. The study sample consisted of 36 hotels. The results revealed that technical inefficiencies of the hotels were mainly due to the pure technical inefficiencies rather than the scale inefficiencies.