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

Ming Chih Tsai, Jie Wu, Zhixiang Zhou

Research output: Journal article publicationJournal articleAcademic researchpeer-review

23 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)417-432
Number of pages16
JournalAsia Pacific Journal of Tourism Research
Volume16
Issue number4
DOIs
Publication statusPublished - 1 Aug 2011

Keywords

  • data envelopment analysis
  • efficiency improvement
  • efficiency measurement
  • international tourist hotels
  • non-discretionary

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Tourism, Leisure and Hospitality Management

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