Accommodation industry or accommodation industries? Evidence from the analysis of production processes

Production processes heterogeneity is largely recognized in tourist accommodation industry, but few empirical evidences have been reported in the literature either on the extent of the heterogeneity or on its determinants. The aim of this study was to investigate the role of environmental features in affecting heterogeneity of accommodation production processes. Using a novel administrative data-set of hotels in Emilia Romagna (ER), we estimate stochastic frontier production functions for different hotel clusters, defined by simultaneously considering seasonality, quality (star rating), and size. Results show a relevant heterogeneity due to these environmental factors, that is different hotel industries exist in ER. From a policy perspective, the analysis evidences the need to develop targeted interventions to different clusters of productive structures.