Performance Benchmarking For Taiwan’s International Tourist Hotels

Abstract

Jhis study proposes an alternative data envelopment analysis (DEA) method to explore the managerial performance, the input congestion, and the benchmarks of intemational tourist hotels (ITHs) for a small open economy, Taiwan. Several empirical results are shown: (1) most ITHs operate at decreasing returns to scale, indicating that ITHs are facing a highly competitive environment; (2) the intemational chain ITHs are generally more efficient than independent-owned ones; (3) ITHs Iocated in resort areas operate slightly better on average than ones located in metropolitan areas; (4) ITHs that are close to CKS intemational airport operate slightly worse on average than ones far from CKS intemational airport; (5) congestion analysis reveals that inefficient ITHs lack the ability to integrate their resources, especially in the total area of the catering division and the number of guest rooms; and finally, (6) the reference-share measure shows that efficient intemational chain ITHs are able to more easily become benchmarks. The findings show that efficient intemational chain ITHs are more competitive and they should provide examples of operating practice.

Tourist Preferences and Cost Efficiency of International Tourist Hotels in Taiwan

“…The scale of hotels has also been discussed in past research studies (e.g., Hwang & Chang, 2003;Chen, 2007), with results showing that the scale of rooms has no positive relationship with the efficiency scores. The location of hotels in Taiwan has also been discussed many times (Yang & Lu, 2006;Hung et al, 2006;Chen, 2007;Hu et al, 2009). These studies investigated which hotels located in which type of area (resort or metropolitan) would have significantly better efficiency, but the findings are inconsistent.…”

“…These studies investigated which hotels located in which type of area (resort or metropolitan) would have significantly better efficiency, but the findings are inconsistent. Some of them noted no relationship between location and efficiency (Sun & Lu, 2005;Chen, 2007), while some researchers found that a resort area had significantly positive impacts on efficiency (Yang & Lu, 2006;Hu et al, 2009). Monty & Skidmore (2003) stated that bed and breakfast accommodations located near tourist areas charge significantly higher than those located in other areas.…”

“…Several topics are discussed there in. For example, what type of operation is more efficient in the hotel industry (e.g., Tsaur, 2001;Hwang & Chang, 2003;Yang & Lu, 2006;Hu et al, 2010;Chen et al, 2010;Hu et al, 2013). Most have found that chain-operated hotels are more efficient than independent hotels.…”

“…Their result showed that not all of Taipei's franchised or managed ITHs perform more efficiently than the independent ones. Yang and Lu (2006) explored 56 ITHs' managerial performance in Taiwan by DEA in 2002. Their findings indicated the mean technical efficiency is 84.80%, which can be divided into pure technical efficiency and scale efficiency with means 0.876 and 0.969, respectively.…”

Cost-benefit analysis in selected air trips using a non parametric method

“…In the air transportation field, DEA has been used mainly for airport evaluation (Barros and Dieke, 2007;Lam et al, 2009;Pacheco and Fernandes, 2003;Pacheco et al, 2006;Wing Chow and Fung, 2009;Yang and Lu, 2006).…”