Cross-Efficiency Evaluation of Taiwan's International Tourist Hotels Under Competitive and Cooperative Relationships

Improving upon previous performance evaluation models, this study advances an integrated cross-efficiency evaluation approach to measure and compare the performances, in terms of operational efficiency, of 12 Taiwanese international tourist hotels (ITHs) having both competitive and cooperative relationships under four hotel chains from 2004 to 2008. The results show that compared with the traditional data envelopment analysis (DEA) model, the advanced approach offers superior results in providing unique ranking of and meaningful managerial implications for the ITHs under evaluation. In particular, Hotel Royal Taipei and Hotel Royal Chihpen outperformed their counterparts from 2004 to 2008, which subsequently helped Hotel Royal Group rank first when comparing with other hotel chains. Ambassador Hotel group ranked last, and this ranking should send a warning signal to their management.