Influence of Location on Dea Efficiency Measure Case Study from Taiwanese
Hotels
Abstract:
In the face of a highly competitive environment, hotels
operational efficiency plays a crucial role in determining a hotels profitability
and competitiveness. Efficiency measures can provide hotel managers with benchmarking
information and further insight of how the hotel can improve efficiency with
its current resources or through changing resource allocation. This research
initially adopted Data Envelopment Analysis (DEA) to measure the relative operational
efficiency of 57 international tourist hotels in Taiwan. However, this DEA score
only indicated the relative efficiency of all sample hotels and did not consider
the role of location. This shortcoming was rectified through the construction
of an area adjustment to reflect the effect of location on DEA efficiency. Implications
for hotel management arising from this adjustment are discussed.
How to cite this article
Chieh-Heng Ko and Yao-Hsu Tsai, 2013. Influence of Location on Dea Efficiency Measure Case Study from Taiwanese
Hotels. Journal of Applied Sciences, 13: 1576-1581.
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