Tourist Preferences and Cost Efficiency of International Tourist Hotels in Taiwan

Abstract

This paper analyzes the effects of tourist nationality sources on international tourist hotels' (ITHs) cost efficiency in Taiwan and the factors affecting a tourist's choice of a hotel. The data envelopment analysis (DEA) approach is used to compute cost efficiency scores of 61 ITHs in Taiwan during 1998-2007. The number of Asian, North American, Japanese, and local tourists has significantly positive effects on cost efficiency, but the number of overseas Chinese has a negative effect on cost efficiency. The number of tourists of other nationalities has no influence on cost efficiency. Generally, most tourists in Taiwan prefer a larger, older, and closer-to-airport hotel. This study also finds that the chain system, the number of scenic spots surrounding hotels, and the ratio of individual tourists all significantly improve the cost efficiency of ITHs in Taiwan.

Revenue management and price optimization techniques in the hotel sector

“…Danziger et al (2006) find that star ratings and the price factor are the most important pieces of information for tourists, and brand information is also important when the star rating is not available. The results obtained by Shieh et al (2014) show that the most attractive attributes are hotel size and age, as well as the proximity to the nearest international airport. They also find that the perception of the attributes varies by nationality.…”

Regional Traffic & Medical Services and Cost Efficiency of International Tourist Hotels in Taiwan

“…There are plenty of studies in hotel efficiency, and we summarize them in Table 1. We find that type (Tsaur, 2001;Hwang & Chang, 2003;Chen, 2007;Barros & Dieke, 2008;Hu et al, 2009Hu et al, , 2010Chen et al, 2010;Assaf et al, 2010), location (Hwang & Chang, 2003;Barros & Mascarenhas, 2005;Chen, 2007;Hu et al, 2009;Hu et al, 2010), scale (Barros & Mascarenhas, 2005;Assaf et al, 2010), and the distance to the international airport (Hu et al, 2009;Chen, 2010;Shieh et al 2014) are four variables used mostly in the existing literature for explaining the hotel efficiency. In the above literature, distance to an international airport is the only variable which is related to transportation.…”

“…Prideux 2000points out that the distance travelled is a key factor in determining the importance of transportation cost when selecting a destination because it includes both the actual fare cost and the time element. Shieh et al (2014) find that generally most tourists in Taiwan prefer a larger, older, and closer-to-airport hotel. We use the distance between each international tourist hotels and each public transport facility to represent transportation cost.…”

An environment-adjusted dynamic efficiency analysis of international tourist hotels in Taiwan

“…In addition, cost efficiency is insignificantly associated with financial performance. Shieh, Hu, and Gao (2014) analysed the effects of tourist nationality sources on 61 ITHs' cost efficiency in Taiwan from 1998 to 2007, as well as the factors affecting a tourist's choice of a hotel. The results show that Asian, North American, Japanese, and local tourists have significantly positive effects on cost efficiency, overseas Chinese have a significantly negative effect on cost efficiency, and other nationalities' tourists have no influence on cost efficiency.…”