Measurement of tourist hotels׳ productive efficiency, occupancy, and catering service effectiveness using a modified two-stage DEA model in Taiwan

Does partial privatisation improve performance? Evidence from a chain of hotels in Portugal

“…In this respect, following the theory regarding the most important indicators in the accommodation context (see, for example, Huang, Ho & Chio, 2014;Min, Min & Joo, 2008;Peng, Huang & Wu, 2013), and constrained by data availability, six performance ratios were calculated, as described below: 1) Rev per worker = Total revenue/Full Time Equivalent workers; 2) Rev to costs = Total revenue/Labour and operational costs; 3) Room rev to costs = Room related revenue and miscellaneous revenue/Labour and operational costs; 4) F&B rev to costs = Food & beverage revenue/Labour and operational costs; 5) RevPar = Room related revenue and miscellaneous revenue/Rooms available; 6) Occupancy rate = Rooms occupied/Rooms available. These six ratios cover three different areas of performance: ratio 1 relates to labour productivity, ratios 2, 3, 4 and 5 relate to profitability and ratio 6 relates to capacity utilisation, allowing us to test the second group of hypotheses (H4, H5 and H6).…”

Performance Evaluation of Taiwanese International Tourist Hotels: Evidence From a Modified Ndea Model With Ica Technique

“…Based on the proposed performance evaluation model from Yu and Lee (2009) and Huang et al (2014), the two-stage performance evaluation framework of hotels' operation is also applied in this paper, namely service production and service operation stages, as shown in Figure 1. This decomposition approach can be used to comprehensively evaluate the managerial performance of Taiwanese international tourist hotels and to identify the main sources of inefficiency for suggesting possible improvements.…”

“…In light of this trend, both the government and managers of hotels shall act more progressively to strengthen industrial and/ or corporate competitiveness. Thus, the two priorities: the efficiency and the effectiveness of service production and service operation, become even more important under the performance-based management framework for the hotel industry; accurate performance evaluation has become the focus for even greater attention for both hotel owner and governmental policymakers, since it can provide valuable managerial information regarding where the competitive edge is for marketing management, and contribute to the strategic plans and to the upgrade of service quality (Hwang & Chang, 2003;Hadad, Friedman, & Israeli, 2005;Chen, 2009;Hu, Chiu, Shieh, & Huang, 2010;Assaf & Barros, 2011;Huang, Ho, & Chiu, 2014;Ban, Tara, Bogdan, Tuşe, & Bologa, 2016;Oukil, Channouf, & AL-Zaidi, 2016;Huang, 2018).…”

“…There are number of studies have proposed performance evaluation approaches for the tourism industry using uni-dimensional (Hwang & Chang, 2003;Yang, Xia, & Cheng, 2017) and multi-dimensional models (Yu & Lee, 2009;Hsieh & Lin, 2010;Huang et al, 2014). Färe and Grosskopf (2000) proposed an innovative approach of the DEA methodology, namely network DEA (NDEA), which can be adopted to decompose the individual components of organizational performance.…”

“…We started with the commonly used two-stage NDEA-based evaluation model to develop a proper evaluation framework. As the managerial performance of international tourist hotels in Taiwan can be decomposed into the service production stage and service operation stage, we chose appropriate variables of each stages as suggested by Yu andLee (2009) andHuang et al (2014). We then used the ICA technique to address the dimensionality issue, which may affect the DEA-based performance model's discriminatory ability (Kao et al, 2011;Lin & Chiu, 2013), by generating independent components (ICs) under the assumption of statistical independence among previously selected variables for input, intermediate input/output, and output.…”