Maximizing Revenue from Satisfaction: Customer-Centric Perspective on Revenue and Cost Management in Hotels

Abstract

This study integrates customer satisfaction with cost and revenue data in upscale chain hotels using a two-stage Network Data Envelopment Analysis approach. Stage 1 assesses Cost-to-Satisfaction (C-S) efficiency; Stage 2 measures Satisfaction-to-Revenue (S-R) efficiency. By comparing two-stage results to traditional one-stage accounting-only DEA, the study exposes limitations in current accounting systems that overlook customer feedback. Findings reveal consistently high C–S but declining and fluctuating S–R efficiency, indicating untapped revenue potential. We advance hotel efficiency research by integrating customer metrics with accounting data in DEA and propose practical guidance in setting priorities in either cost or revenue management.