Cost-benefit analysis in UK hotels: A hybrid SOCP-MCDM approach

Performance evaluation has been an important topic of concern for tourism industry practitioners as well as academic researchers, and its investigation in the UK hotel sector is paramount because this industry has been experiencing a higher level of competition. The present study contributes to the previous literature on hotel performance evaluation in general by proposing an innovative hybrid method combining the second-order cone programming (SOCP) method and multi-criteria decision-making (MCDM) method to estimate the performance of the UK hotel sector. The innovation lies in the synergistic combination of SOCP and MCDM methodologies, enabling a comprehensive assessment of hotel performance by managing a non-linear optimisation. Overall, this hybrid method benefits from the ability to be more flexible in addressing complex operational issues and provide more accurate results. This research provides a cost-benefit analysis within the proposed method, suggesting important policy implications in the tourism industry.