Financial Performance Assessment οf Strategy for Building Resilience and Readiness in the Hotel Sector of Greece
Purpose: The aim of the study is to demonstrate the value of the financial performance , in assessing the degree of resilience and agility of a fruitful hotel strategy in a turbulent and disruptive era. Design/Methodology/Approach: Data Envelopment Analysis (DEA) was performed for 2017-2019 period, in conjunction with the asset turnover and operating profit to assets ratios, were used as the main tool to measure resilience and preparedness, that are manifested in enduring efficiency and effectiveness performance of operations. The latter two features of performance together represent credible resilience engines, since are inextricably intertwined to enhance capability with flexibility, growth and prudence in confronting uncertainty decisively. Αudited financial data were exploited to assess performance endurance among those dimensions. Αn input oriented model was employed based on total assets as the crucial input, while revenues and operating profits were utilized as outputs. Findings: The DEA window analysis results, portrayed both, the low scale efficiency (SE) and the deficient pure technical efficiency (PTE) as contributors to low global efficiency (TE). Adequate revenues turnover and operating profits with respect to total assets, are the essential ingredients to secure resilience and the crucial aspects of effectiveness and efficiency performance of a victorious strategy. Originality/Value: Performance differences among hotels, can be exploited to guide strategic management interventions to enhance the value creation process and resilience through versatility and sustainability, which are reflected in the effectiveness and efficiency measures. Performance measurement and evaluation unveils management options for informed choices to benefit the key stakeholders.