Decomposing the operational efficiency of major cruise lines: A network data envelopment analysis approach in the presence of shared input and quasi-fixed input

Abstract

To examine the top cruise lines' operational efficiency in three dimensions, namely, production, marketing, and profitability, this study adopts a network data envelopment analysis approach considering shared and quasi-fixed input factors. The empirical results reveal the following findings. First, the production process tends to outperform marketing and profitability processes. Second, inefficiency of a cruise line mostly stems from overconsumption of the exogenous inputs in each process and the shared input. Third, the relationships between operational efficiency of cruise lines and some categorical factors are examined. Finally, some managerial implications derived from the empirical results are formulated for cruise lines.