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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
    as

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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    International hotel; Operational performance; Data envelopment analysis; Malmquist productivity index;

    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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