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Hotel Performance Evaluation

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Hotel Performance Evaluation
RESEARCH NOTES AND REPORTS
This Department publishes research notes, conference reports, reports on the work of public agencies and associations, field (industry) reports, and other relevant topics and timely issues. Contributions to this department are submitted to its two Associate Editors: Research Notes to Juergen Gnoth (Department of Marketing, University of Otago, Dunedin, New Zealand. Email ) and Conference Reports to Russell Smith (Hospitality and Tourism, Nanyang Technological University, Singapore 639798, Rep. of Singapore. Email ). Unsolicited conference and agency reports will not be accepted.

RESEARCH NOTES

www.elsevier.com/locate/atoures

Annals of Tourism Research, Vol. 31, No. 3, pp. 712–715, 2004 # 2004 Elsevier Ltd. All rights reserved. Printed in Great Britain 0160-7383/$30.00

A DEA Evaluation of Taipei Hotels
Wan-Erh Chiang Ming-Hone Tsai Li Shau-Mei Wang National Central University, Taiwan
It is always a major concern for top management to measure efficiency. Data Envelopment Analysis (DEA) is an excellent tool for assessing the relative efficiency of decision-making units. This research is aimed at measuring hotel performance by DEA under three operational styles of International Tourist Hotels (ITHs) commonly seen in Taiwan since 2000: Independently owned and operated, franchise licensed, and managed by international hotel operators. The results are expected to provide hoteliers with a basis for constructing strategies and promotion plans. With carefully selected indicators (input/output variables), DEA is able to locate and diagnose inefficiencies, and to provide information for improvements. Several in-depth interviews were conducted with top managers of some Taipei ITHs for critical indicators. Therefore, this study explored the operational efficiency of ITHs not only from a theoretical standpoint but also according to ideas and practical experiences of hoteliers. The data were obtained from the Annual Operation Report of the ITHs



References: Banker, R., A. Charnes, and W. Cooper 2003 Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis. Management Science 30:1078–1092. Charnes, A., W. Cooper, and E. Rhodes 1999 Measuring the Efficiency of Decision Making Units. European Journal of Operational Research 2:429–444. Enz, C., and L. Canina 2002 Best of Times, The Worst of Times: Differences in Hotel Performance Following 9/11. Cornell Hotel and Restaurant Administration Quarterly 43(5):22–32. Ismail, J., M. Dalbor, and J. Mills 1991 Using RevPar To Analyze Lodging- Segment Variability. Cornell Hotel and Restaurant Administration Quarterly 43(5):73–80. Submitted 4 April 2003. Resubmitted 4 July 2003. Accepted 10 July 2003. Final version 30 August 2003 doi:10.1016/j.annals.2003.11.001

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