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

Yuan-ho Lee (), Lung-Tan Lu and An- De Sung ()
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Yuan-ho Lee: Department of Economics, Fo Guang University, Taiwan
An- De Sung: Department of Economics, Soochow University, Taiwan

Review of Economics & Finance, 2012, vol. 2, 73-83

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.

Keywords: International hotel; Operational performance; Data envelopment analysis; Malmquist productivity index (search for similar items in EconPapers)
JEL-codes: C43 L25 M40 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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