Tourism Economics, 2011, 17 (1), 73–89 doi: 10.5367/te.2011.0027 Modelling the performance of Australian hotels: a DEA double bootstrap approach A. GEORGES ASSAF Isenberg School of Management, 90 Campus Center Way, 209A Flint Lab, University of Massachusetts–Amherst, Amherst, MA 01003, USA. E-mail: assaf@ht.umass.edu. FRANK W. AGBOLA Newcastle Business School, University of Newcastle, Callaghan, New South Wales, Australia. This study uses the data envelopment analysis (DEA) double bootstrap approach to assess the technical efficiency standing of Australian hotels. Two inputs and six outputs were used in the analyses for the period 2004–2007. The empirical results indicate that the DEA bootstrap approach corrects for the bias inherent in traditional DEA models. The results show that the average technical efficiency of Australian hotels has improved gradually from 76.17% in 2004 to reach its highest level of 80.84% in 2007. The results also indicate that the key determinants of the technical efficiency of Australian hotels are the number of years in business, location, star rating and physical size. The implications of the results are discussed. Keywords: DEA double bootstrap; hotel efficiency; hotel performance measurement; Australian hotels The achievement of high productivity in the daily activities of hotel operations is determined largely by the internal and external shocks of the industry. From an internal perspective, the high cost of capital investments and fluctuations in room demand creates a need for hotels to maintain a high level of operational performance. The intense level of competition in the external environment brought about by globalization and financial liberalization also adds to the productivity challenges facing the hotel industry worldwide. The market challenge for hotels is exacerbated further by the emergence of a growing number of small accommodation providers such as motels, serviced apartments, caravan parks and hostels, which provide the same service as hotels but at a cheaper price. Given that consumers are price conscious, they are more likely to demand high-quality service from accommodation providers. In the hospitality literature, the importance of hotel productivity is evidenced by the growing number of studies abroad which have focused on the