Hwai-Shuh Shieh

Cost efficiency of international tourist hotels in Taiwan: a data envelopment analysis application.

This paper uses the data envelopment analysis approach to measure cost, allocative and overall technical efficiencies of international tourist hotels (ITHs) in Taiwan during 1997–2006. There are three outputs, three inputs, three input prices and four environmental variables in the empirical model. The cost inefficiency of these hotels is from overall technical inefficiency. International tourist hotels in Taiwan have an average efficiency of 57%. Chain systems, non-metropolitan areas and occupancy rate have significantly positive impacts on all efficiency scores of Taiwans ITHs. The distance from the nearest international airport significantly worsens their efficiency scores.

The greener, the more cost efficient? An empirical study of international tourist hotels in Taiwan.

Going ‘green’ is more than a mere fad in the hotel industry, and environment-friendly green hotels are becoming popular. The purpose of this study was to conduct an investigation into the link between ‘green’ and cost efficiency in the hotel industry. Empirical evidence supporting this investigation was gathered from the Taiwan hotel industry. Data were gathered from 68 international tourist hotels in Taiwan. Moreover, our finding differs from most of the earlier studies and indicates that ‘green’ is negatively and significantly associated with the cost efficiency of a hotel. In other words, ‘green’ renders a hotel ineffective. The implications of the findings have been discussed, and the limitations of the study as well as future research directions have been addressed.

An environment-adjusted dynamic efficiency analysis of international tourist hotels in Taiwan

The paper is the first study to combine four-stage approach and dynamic data envelopment analysis (DEA) to investigate the efficiencies of 45 international tourist hotels in Taiwan during 2002–2011. Using the four-stage approach of Fried et al. [1999. Incorporating the operating environment into a nonparametric measure of technical efficiency. Journal of Productivity Analysis, 12(3), 249–267] and the dynamic DEA model by Tone and Tsutsui [2010. Dynamic DEA: A slacks-based measure approach. Omega, 38(3), 145–156], the study considers the effects of the external operating environments and carry-over activities between two consecutive terms, and calculates managerial efficiency of international tourism hotels in Taiwan. The empirical results show that dynamic DEA provides more stable pure managerial efficiencies than traditional DEA, reflecting the continuity of the links between terms. Then the study employs Tobit regression to estimate the effects of location, management style, and occupancy rate on input slacks. The location in resort area leads to less slacks of employee and room. The chain system helps reduce slacks in room and area of meal department. The slack of employee and room gets lower while occupancy rate gets higher. After controlling the three external environment variables, the efficiency scores of 28 hotels increase, 9 hotels fall, and other 8 hotels still sustain on the efficient frontier.