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A Measure to the Operational Performance of International Hotels in Taiwan: DEA and Malmquist Approach

Author

Listed:
  • Yuan-ho Lee

    (Department of Economics, Fo Guang University, Taiwan)

  • Lung-Tan Lu

    (Department of Management, Fo Guang University, Taiwan)

  • An-De Sung

    (Department of Economics, Soochow University, Taiwan)

Abstract

This paper aims to explore the operational performance of international tourist hotels in Taiwan. To do empirical analysis, we use the models of the Data Envelopment Analysis (DEA) and the Malmquist productivity index to explore the reasons for the difference in operation efficiency of international tourist hotels in Taiwan. It is selected that variables of number of rooms, number of employee, average salary, space of food and beverage, occupancy rate, room revenue, food and beverage revenue, and total operational revenue from each hotel during 2002-2009. It is found that international hotels in Taiwan did not operate on an optimal scale. It is suggested that international hotels need to improve their resource utilization, such as input and output adjustments, use of energy-saving facilities to effectively enhance production efficiency.

Suggested Citation

  • Yuan-ho Lee & Lung-Tan Lu & An-De Sung, 2012. "A Measure to the Operational Performance of International Hotels in Taiwan: DEA and Malmquist Approach," Review of Economics & Finance, Better Advances Press, Canada, vol. 2, pages 73-83, February.
    • Handle: RePEc:bap:journl:120106
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    References listed on IDEAS

    as
    1. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    3. Claudio Giannotti & Gianluca Mattarocci & Luca Spinelli, 2010. "The relative importance of sector and regional factors in the hotel industry," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 28(3), pages 162-180, April.
    4. Charnes, A. & Cooper, W. W. & Rhodes, E., 1979. "Measuring the efficiency of decision-making units," European Journal of Operational Research, Elsevier, vol. 3(4), pages 339-338, July.
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    Cited by:

    1. Yin, Pengzhen & Chu, Junfei & Wu, Jie & Ding, Jingjing & Yang, Min & Wang, Yuhong, 2020. "A DEA-based two-stage network approach for hotel performance analysis: An internal cooperation perspective," Omega, Elsevier, vol. 93(C).
    2. Hyo-Jae Joun & Hany Kim, 2020. "Productivity Evaluation of Tourism and Culture for Sustainable Economic Development: Analyzing South Korea’s Metropolitan Regions," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    3. Athanasia Karakitsiou & Markos Kourgiantakis & Athanasia Mavrommati & Athanasios Migdalas, 2020. "Regional efficiency evaluation by input-oriented data envelopment analysis of hotel and restaurant sector," Operational Research, Springer, vol. 20(4), pages 2041-2058, December.

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    More about this item

    Keywords

    International hotel; Operational performance; Data envelopment analysis; Malmquist productivity index;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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