Henry Tsai

Improving efficiency in international tourist hotels in Taipei using a non-radial DEA model.

Purpose – The purpose of this study is to evaluate the operational efficiency of 23 four‐ and five‐plum international tourist hotels (ITHs) in Taipei in 2006, paying attention to efficiency improvement using a non‐radial data envelopment analysis (DEA) model.Design/methodology/approach – A non‐radial DEA model is proposed to improve the efficiency of inefficient hotels focusing on the output side by allowing for non‐proportional reductions in each positive input or augmentations in each positive output. The model considers four inputs (total number of rooms, total number of employees, food and beverage (FB variable returns to scale are assumed.Findings – The empirical results show that the radial and non‐radial DEA models provide not only different performance measurements for the corresponding hotels but also different benchmarks from different angles for improving efficiency.Practical implica...

The Impact of Service Quality on Positive Consumption Emotions in Resort and Hotel Spa Experiences

Spas primarily sell “experience.” It is important for a spa to deliver quality services so that customers attain positive emotions, as this will encourage customers to seek the same positive experience in the future. However, previous spa studies have failed to investigate the impact of the specific dimensions of spa service quality on consumers’ emotions. This study fills that gap by identifying the dimensions and attributes of spa service quality and investigating their impact on consumers’ positive emotions attained from a hotel or resort spa experience. A survey was conducted of hotel and resort spa customers in southern China. Factor analysis was used to explore the attributes and dimensions of spa service quality, and multiple regression analysis was used to determine the impact of spa service quality dimensions on customers’ positive emotions. Responsiveness was found to be the most important determinant factor in explaining positive emotions, followed by reliability, empathy, and tangibles. The results demonstrate the importance of spa service quality in enhancing the attainment of positive emotions by spa customers. Well-designed service process, standardized service procedures, and training, can help to enhance spa service quality, generate positive emotions, and ultimately create a better spa experience for customers.

Star‐Rated Hotel Productivity in China: A Provincial Analysis Using the DEA Cross‐Efficiency Evaluation Approach

The hotel industry in China has recently seen phenomenal growth, but despite this there has been criticism of its relatively ordinary service standards, which are thought to lag behind its more advanced hardware and infrastructure. Such unbalanced development could lead to less efficient operations and hence to less desirable industry performance. This study therefore aimed to examine star‐rated hotel productivity in China on a provincial basis using the data envelopment analysis (DEA) technique based on the Banker‐Charnes‐Cooper (BCC) model with the extended cross‐efficiency approach. The results indicate that cross‐efficiency evaluation does provide an alternative to the major productivity indicators presented in The Yearbook of China Tourism Statistics (Shao, 2002–2007). The implications for managers are also discussed. 近年来，中国酒店业的发展一日千里。尽管酒店业发展迅速，但其服务水平却被评为一般，跟不上其较为先进的硬件和基础建设。这种失衡的发展会降低运作效率，从而导致产业绩效下滑。针对以上的情况，本文根据BCC模型，利用延伸的交叉效率权系数确定方法和数据包络分析 (data envelopment analysis [DEA]) 技术，研究中国各省份星级酒店的生产力。研究结果显示交叉效率评估的确能够为《中国旅游统计年鉴》内主要的生产力指数提供另一个评估选择。本文最后论述了研究成果对经理的启示。

Managing Efficiency in International Tourist Hotels in Taipei using a DEA Model with Non-discretionary Inputs

In this paper, an input-oriented data envelopment analysis model with discretionary and non-discretionary variables is proposed for measuring the efficiency of international tourist hotels (ITHs). The model considers two outputs (total revenues and occupancy percentage), two discretionary inputs (total number of employees and total operating costs) and two non-discretionary inputs (total number of guest rooms and food and beverage capacity). Variable returns to scale are assumed. Both the proposed and the traditional input-oriented model are applied to measure the efficiency of 21 ITHs in Taipei during 2003–2007, and different efficiency measures and benchmarks are derived to help the management of these hotels adjust more effectively their discretionary inputs to achieve better efficiency. Implications are also discussed.

Optimizing room capacity and profitability for Hong Kong hotels.

ABSTRACT This study estimates optimal guestroom capacity for the Hong Kong hotel industry during 2010–2013 using a single-period inventory model. Using Hong Kong hotel operational data for the period 2000–2009, we identify an issue of serious overcapacity of Hong Kong hotels for 2010–2013, the severity of which ranges from 30.6 to 40.7% above the optimal hotel guestroom counts derived from our study. We further estimate an optimal advertising budget as a percentage of total revenue (3.78%) in maximizing profitability. Attention is called for stakeholders to carefully reexamine existing and future hotel development plans and work on pushing up future room demand. The implications of our study are also discussed.

A hotel life cycle model based on bootstrap DEA efficiency: the case of international tourist hotels in Taipei.

Purpose – This study aims to propose a hotel life cycle model and applies this model to examine the development of international tourist hotels (ITHs) in Taipei. Design/methodology/approach – In this study, a two-stage approach is proposed to examine the life cycles of 20 ITHs in Taipei. First, we evaluate the overall and departmental efficiencies by using a two-layer bootstrap data envelopment analysis (DEA) model. Second, we divide the phases of the hotel life cycle by incorporating two objective indicators, namely, the average efficiency change rate (AECR) and the annual average efficiency (AE). Findings – The results show not only that the efficiency scores derived from the bootstrap DEA model could help assess the performance of individual ITHs but also that the resulting AECR and AE could help to objectively classify the development of the hotels under study into the following phases: initial, growth, maturity and recession and regeneration phases. Practical implications – The method proposed in, an...

Measuring Customer-Based Casino Brand Equity and its Consequences

ABSTRACT Based on the brand equity and behavioral theories, this study measures customer-based casino brand equity and its relationship with three consequences (i.e., perceived value, brand preference, and revisit intention) using 525 customers from six Macau casinos as the sample. The study confirms that customer-based casino brand equity is a higher order factorial structure measuring the four first-order constructs identified a priori. The strongest association was found to be with brand image, followed by perceived quality, brand loyalty, and brand awareness. Perceived value and revisit intention were found to be the two direct consequences of customer-based casino brand equity. Customer-based casino brand equity also affects revisit intention indirectly through perceived value and brand preference. To increase customers’ revisit intention, casinos should not only work on uplifting their casino brand equity, but also allocate resources to elevate perceived value and brand preference to indirectly help mediating the relationship between casino brand equity and the revisit intention of customers. More managerial implications are discussed in the present article.

Tourists’ and Residents’ Perceptions Toward Casino Gaming Development in Hong Kong

This study investigates the perceptions of tourists and residents toward developing casino gaming in Hong Kong and compares differences in perceptions among respondents of different demographics. The results show that residents had more negative views than tourists did on the social impact of casino gaming such as increasing demand of loan sharking, gang involvement, crime rates and the problem of drug abuse. Compared to residents, somewhat more tourists envisioned that casino gaming would bring economic benefits such as job opportunities to Hong Kong. Based on the results of this study, stakeholders, including government authority and casino operators should take note of the concerns about the social impacts when assessing the feasibility of casino gaming. Furthermore, encouraging public participation in policy formulation and environmental assessment is critical if the development of casino gaming in Hong Kong is to take place.

A Revenue Management Model for Casino Table Games

Revenue management (RM) principles can apply to casino table games just as they do many other service industry operations. Creating a sound and feasible RM model for casinos relies foremost on the ability to create a demand forecast that accounts for the intermittent demand patterns of casino table games. Using a modified Croston’s approach to forecast demand, this article proposes a revenue optimization model to help managers determine how many tables to open and what limits to set. Empirical tests of historical data for hourly demand at blackjack tables in a casino in Ontario, Canada, show that the theoretical win amounts derived using RM applications exceeded the theoretical win actually recorded by the casino. By recording players’ betting patterns and speed of play, the casino industry should be able to use this model to improve on the current practice of opening and closing tables according to intuition and historic demand patterns. With the data in hand, casinos should be able to implement the model without substantial difficulty.

The Relationships Between Casino Quality, Image, Value, and Loyalty

This research builds on the idea that casino customers’ subjective, global judgments of service quality are shaped by experience of its specific attributes, and examines how casino customers form their evaluative attitudes toward the casino experience in the Macau context. Using the data collected from 525 Macau casino customers, we first identify four casino quality dimensions; namely, supporting facilities, staff service, diversity, and equitableness. We then test and validate a proposed model for the structural relationships between casino image (as a consequence of the four quality dimensions), value, and loyalty. In particular, value is shown to be a mediator of the relationship between image and loyalty from the perspective of casino customers. The results of our study can show Macau casino operators what constitutes customers’ casino experiences and aid them in enhancing their image, perceived value, and customer loyalty toward casinos.