Evaluating the Performances of Taiwan’s International Tourist Hotels: Applying the Directional Distance Function and Meta-Frontier Approach

Lee, Yi‐Lung; Kuo, Shew-Huei; Jiang, Ming; Li, Yang

doi:10.3390/su11205773

Cited by 10 publications

(14 citation statements)

References 22 publications

(27 reference statements)

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“…In the water industry, Sun, Yang, Zhang, and Chen [45] evaluated the efficiency of the use of this product in the municipalities of China, using the traditional DEA model, but modifying the indices used. In the hotel sector, Lee, Kuo, Jiang, and Li [46] evaluate the efficiency of this sector in Taiwan. To do this, they used the DEA and added a mega frontier, modifying the directional distance function in the meta-frontier model in order to consider expanding outputs, contracting inputs, and fixed quasi-fixed inputs in the short-run.…”

Section: Methodsmentioning

confidence: 99%

Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel Industry in Ecuador

et al. 2020

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The level of contribution of the hotel industry depends on different factors of production that they use in the provision of their services The way they use these factors of production will allow them to act efficiently, in order to improve profitability and market position. Ecuador, in recent years, has directed public policies betting on the development of this industry. In this sense, this research seeks to measure the efficiency and productivity of the Ecuadorian hotel industry. For this purpose, a significant sample has been selected; it consists of 147 businesses that provided hotel services during the period 2013-2017. These businesses are classified according to their quality and geographic location. This information has been useful to make a balanced panel data with one output (Revenue) and three inputs (Total_personnel, the non-current assets, and Consumption) by using the Data Envelopment Analysis (DEA). The results, which proved to be solid and accurate, indicate that the most efficient businesses are the ones in the third class, whereas those hotels located in zones with tourist attractions and activities have a better optimization of those resources. This situation has an effect on the significant improvement of their productivity.

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Section: Methodsmentioning

confidence: 99%

Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel Industry in Ecuador

et al. 2020

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“…The limits for groups such as T 1 , T 2 , and T 3 can be differences in country geography, regional production environment, or the economic development of each area or region [23,24]. The difference between these two values is the technology gap, measuring the distance gap between the group frontier and the metafrontier in Figure 1 [24]. This study uses the stochastic frontier analysis (SFA) to measure the effectiveness of coffee shop franchise brands in Korea and a metafrontier production function that involves the production function of all groups to compare the efficiency levels of three other groups (large-, medium-, and small-chain) of franchise brands operating under different technical conditions.…”

Section: Analysis Technique (1): Metafrontier Dea Modelmentioning

confidence: 99%

“…Above all, the metafrontier approach is able to measure the efficiencies of DMUs associated with distinctive technologies and estimate the technical efficiency, TGR, and metafrontier efficiency of each group [8,[22][23][24].…”

Section: Analysis Technique (1): Metafrontier Dea Modelmentioning

confidence: 99%

“…This involves a metafrontier estimation, which represents the envelope of all stochastic production frontiers for all groups or regions, as seen in Figure 1. The limits for groups such as T 1 , T 2 , and T 3 can be differences in country geography, regional production environment, or the economic development of each area or region [23,24]. The difference between these two values is the technology gap, measuring the distance gap between the group frontier and the metafrontier in Figure 1 [24].Sustainability 2020, 12, x FOR PEER REVIEW 4 of 21…”

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Measuring the Meta Efficiency and Its Determinants on Efficiency in the Korean Coffee Shop Franchise

2020

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Previous applications of DEA (data envelopment analysis) models in the field of franchising have been scarce. In particular, measurement and analysis of the operational efficiency of coffee shop franchisors in the explosively growing coffee market in Korea is required. In this study, we categorize 29 Korean coffee shop franchisors into three groups according to their number of franchisees and employ the metafrontier analysis to measure the efficiency of coffee shop franchisors from 2015 to 2018. Based on the results of metafrontier DEA, this study identifies sources of inefficiency within individual coffee shop franchisors to provide insights for coffee franchise operators and investigates efficiency differences between small-chain and medium-chain coffee shop franchisors. Furthermore, the results of bootstrapped truncated regression provide that the external environmental factors affecting the efficiency of each individual group are totally different patterns depending on the franchise group. Based on the analysis results, this study suggests strategic initiatives tailored to individual coffee shop groups to enhance their operating efficiency and identifies the principal operational drivers of the environmental variables to achieve sustainable growth.Additionally, analyze the impact of the industry in which the franchisor operates its business on its chain efficiency by comparing 43 chains' efficiency between and across industries (retail versus services) using a meta-DEA and a context-dependent DEA. In this study, they developed a level-by-level benchmarking path with the context-dependent DEA approach to provide realistic short-term and long-term objectives to inefficient chains. Methodology Analysis Technique (1): Metafrontier DEA ModelTraditional DEA models consider the units selected for analysis as a homogenous group, thus, it is supposed that all the considered DMUs use the same technology and are completely homogenous organizations [18]. Comparisons of technological efficiencies among groups cannot be performed using conventional DEA because the technical efficiency of a particular company is difficult to compare with that of others operating with other technologies [9,10]. However, franchising activity includes numerous and diverse sectors and groups, such as travel agencies, hotels, restaurants, and fashion outlets. This fact makes us to suppose that there can be differences between the efficiency of franchise firms depending on their belonging sector or their franchise group managed by individual franchisors [18]. To account for this heterogeneity problem, there are several approaches that take account of different production technologies. In particular, Battese et al. [7], Battese and Rao [22], and O'Donnell et al. [23] consider the fact that technology could differ across regions and develop the stochastic metafrontier approach. A metafrontier approach is able to measure efficiencies of DMUs associated with distinctive and heterogeneous technologies. This involves a metafrontier estimation, which...

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“…Tourism, as an economic activity, combines the activities of production and service of food and beverage, hospitality and transportation (Lee et al, 2019). -The tourism sector represents a significant potential of any national economy‖ (Milenkoviš et al, 2017, p. 197).…”

Section: Introductionmentioning

confidence: 99%

Profitability analysis of hotel companies in the Republic of Serbia

Mitrović¹,

Knežević²,

Milašinović³

2021

Menadž u hotelijerstvu i turiz

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The purpose of the research is to examine the level and trends of profitability ratios of hotel companies operating in the Republic of Serbia in the period from 2016 to 2019. The research was conducted on a sample of 100 hotel companies, where profitability was measured by the operating profit rate, the net profit rate, the rate of return on total assets and the rate of return on equity. The results of the research show that the values of the used profitability indicators have increased in 2017 compared to 2016, but decreased in 2018 and 2019. Statistical analysis found that changes in the operating profit rate and net profit rate during the observed four-year period were not statistically significant, while the decline in the value of the rate of return on total assets in 2018 compared to 2017 and the decline in the rate of return on equity in 2018 compared to 2017 and in 2019 compared to 2018 was statistically significant. The results of the research can be important for (1) the management of a company, (2) its owners, because they enable gaining an insight into the level of profitability of entrusted companies, i.e. the companies that are in the ownership, and (3) investors and creators of tourism development policy.

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Evaluating the Performances of Taiwan’s International Tourist Hotels: Applying the Directional Distance Function and Meta-Frontier Approach

Cited by 10 publications

References 22 publications

Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel Industry in Ecuador

Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel Industry in Ecuador

Measuring the Meta Efficiency and Its Determinants on Efficiency in the Korean Coffee Shop Franchise

Profitability analysis of hotel companies in the Republic of Serbia

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