Research on the use of economies of scale in services industry

Abstract

The research carried out in the present paper aims at carrying out researches on the use of scale ranges within the service providers with the following objectives: performing a synthetic diagnosis of the investigated units and determining the impact of the scale returns within the tourist services units. The obtained results verify the hypothesis of the application of the service efficiency principle so that a hostel with a capacity of 4 rooms records an average cost of 250 euro room-1 year-1 . This decreases significantly in such a way that a 6-room guesthouse receives a cost of 167.7 euro room-1 year-1 . The condition that the economical units surveyed benefit from the benefits of economies of scale is that they make every effort to ensure the highest possible capacity to serve. Otherwise, there are no economies of scale, but on the contrary, high service capacities have to bear large average costs.