A stochastic cost efficiency analysis of international tourist hotels in Taiwan

The one-stage stochastic frontier approach (SFA) is used in this study to simultaneously estimate cost efficiency scores and factors of cost inefficiency for 66 international tourist hotels in Taiwan during 1997–2006. An SFA model with three outputs and three inputs is defined. The three outputs are room revenue, food and beverage revenue, and other operation revenue while the three inputs are price of labor, price of other operation, and price of food and beverage. This model also takes into account five environmental variables, including dummy variable of the hotels located in non-metropolitan area, dummy variable of chain hotels, the number of tourist guides, the minimum distance from each hotel to Taoyuan international airport and the minimum distance from each hotel to Kaohsiung international airport. Empirical results show that international tourist hotels in Taiwan are on average operating at 91.15% cost efficiency. All nominal variables are transformed into real variables in 1997 prices by GDP deflators. Chain systems, tourist guides, and international transportation can significantly improve the cost efficiency of international tourist hotels in Taiwan.     

Market structure and profitability in the international tourist hotel industry

This paper adopts Hsiao (1986) panel data techniques, with metropolitan-level panel data from Taiwan, to examine how the market structures of various related service markets and hotels’ locations affect hotels’ profitability. The empirical results indicate that: (1) market concentration in rooms could significantly improve international tourist hotels’ profitability, while concentration in the food and beverage markets have positive but insignificant effects, and (2) the locations of the international tourist hotels significantly affect their profitability.     

A customer satisfaction index model for international tourist hotels: Integrating consumption emotions into the American Customer Satisfaction Index

This study integrates consumption emotions into the American Customer Satisfaction Index (ACSI) model to propose a hotel customer satisfaction index (H-CSI) model that can be applied to estimate customer satisfaction toward international tourist hotels. The H-CSI scale items were designed based on reference to the relevant literature and the suggestions of a focus group. Four-hundred and twelve customers of international tourist hotels were surveyed. The partial least squares method was employed to validate the measurement instruments in the H-CSI model and estimate item weights for the customer satisfaction scales. The H-CSI model is a comprehensive model for the measurement of customer satisfaction that includes most possible antecedents and outcomes. The research results show that the H-CSI model displayed strong explanatory power based on its reliability and validity. Accordingly, if hotel managers apply the H-SCI model instead of a general customer satisfaction survey, they can obtain a robust estimation of customer satisfaction, as well as extra information of post-purchase customer behavior to better manage customer satisfaction and achieve a competitive advantage.     

A performance evaluation model for international tourist hotels in Taiwan—An application of the relational network DEA

This research utilizes relational network data envelopment analysis to construct a model to analyze the efficiency and effectiveness of international tourist hotels (ITHs) in Taiwan. The different production processes within the hotel are evaluated, as well as the relationships between efficiency, effectiveness, and overall performance. Finally, based on the results, we recommend ways of enhancing the overall performance of the hotel industry in Taiwan.     

A study of economies of scale and economies of scope in Taiwan international tourist hotels

This paper is to investigate economies of scale and economies of scope for the international tourist hotel industry in Taiwan. The research sample contains 50 international tourist hotels in Taiwan. Research data is from financial statements in the official annual report published by the Tourism Bureau, Ministry of Transportation and Communication, R.O.C., and the sample period is from 1993 to 1997. The empirical model contains the Translog cost function, which includes three output variables and four input factors, the cost‐share equations, and the constraints on the parameters in the simultaneous cost system. The seemingly unrelated regression (SUR) is used to estimate the parameters of the simultaneous cost system. The results show that, based on the 1997 data, international tourist hotels in Taiwan are in general not operating efficiently, in terms of cost efficiency. There are some cost incentives or benefits from expansion both in scale and scope of business.     

Impact evaluation for tourism development using the fuzzy set model: A case study of Kyongju,Korea

The Community tourism industry is primarily influenced by facilities, traffic systems, capacity, and development of tourism commodities. To develop tourism industry on a local basis, it is unavoidable to make investments on a large scale. Factor analysis for impact evaluation prior to undertaking of development projects, which this study intends to make, is more reasonable when related to the fuzzy numeric analysis of words or sentences than to a quantitative analysis of measured information. In this study the Euclidean distance method and Zadeh's fuzzy extension principle were used as linguistic approximation to establish the validity of decision‐ making in each factor category of impact degree. Therefore, this study introduces a general concept of Fuzzy theory through literature review of linguistic expressions. This study examined availability of the Fuzzy model in analyzing investment priorities for tourist development and applied it to Kyongju area, which unveiled the priorities for Kyongju tourism future in order of traffic system improvement, early construction of horse‐ racing track now under planning, promotion of Kyongju as tourism special zone to visitors and positive tourism events. In terms of methodology, this study disclosed that Fuzzy Model approach is greatly useful to decision‐making processes in tourist development.     

Hotel chain affiliation as an environmental performance strategy for luxury hotels

Stakeholders are increasingly aware of the potential of environmental performance to benefit their health; however, there is a paucity of sustainability studies addressing the relationship between corporate social responsibility (CSR) performance and the brand equity of hotel chains. Unlike traditional economics that treat undesired outputs such as carbon emissions as costless, this research presents an accurate, concise and clear empirical examination of hotel chain affiliation strategy through the Malmquist-Luenberger index to measure the brand competitiveness of the strategy while considering carbon emissions reduction using objective official panel data from Taiwan. The findings reveal that a group of hotel chains has a significantly higher average energy efficiency and branding value than those of a group of independent operators when holistic carbon emissions reduction is considered. Thus, this study encourages stakeholders to promote green hotel policies to independent hotel operators to achieve a higher brand value with lower carbon emissions and to adopt greater use of business intelligence to assist the decision-making of hotel operators in conformity with the United Nations (UN) Sustainable Development Goals (SDGs).     

A novel hybrid model for tourist volume forecasting incorporating search engine data

The precise prediction of tourism demand has long presented a challenge for both tourism professionals and academics. Tourist volume forecasting is a nonlinear problem, support vector regression (SVR) can approximate a nonlinear system with enough precision, but parameters tuning has always been an obstacle to developing SVR with good generalization potential. Furthermore, previous research mainly used historical observations of tourism demand as the inputs of SVR. This study introduces an approach that hybridizes SVR with the Bat algorithm (BA), namely BA-SVR, to forecast tourist volume by incorporating search engine data. In this model, BA is used to adjust the SVR parameters. To validate our proposed approach, tourist volume data for China’s Hainan province from August 2008 to October 2015 were used in conjunction with corresponding search engine data as numerical examples. The 12-month simulation forecasts indicate that the BA-SVR is an effective method that can outperform its traditional counterparts.     

An integrated approach for selecting corporate social responsibility programs and costs evaluation in the international tourist hotel

The purpose of this paper is to present an integrated approach and scientific techniques for corporate social responsibility (CSR) programs selection decisions and costs evaluation in the hotel industry. First, experts are chosen to conduct the analytic structure construction for CSR programs selection by identifying cost and differentiation advantage criteria and CSR program candidates that can benefit society and competitive advantage for hotels. Second, the DEMATEL (Decision Making Trial and Evaluation Laboratory) method is used to detect complex relationships and build a network structure among the cost and differentiation advantage criteria. Third, the ANP (Analytic Network Process) is used where the criteria are dependent. Fourth, the ANP results are applied to ZOGP (Zero–One Goal Programming) formulation to find the optimal CSR program portfolio under limited resources and constrained situations. Finally, ABC (Activity-Based Costing) model is used to calculate each chosen CSR program's costs in order to acquire accurate cost information. The result shows that the improvement on the image of an organization is the major dispatch for driving the international tourist hotel to fulfill CSR goals. The integrated approach can help international tourist hotels’ managers to select CSR programs more scientifically and to make decisions conforming to the reality.     

A balanced scorecard approach to establish a performance evaluation and relationship model for hot spring hotels based on a hybrid MCDM model combining DEMATEL and ANP

The balanced scorecard approach is an effective technique for performance evaluation. For more accurately reflecting the dependence and feedback problems of each factor in real world situations, here a new model is developed using a balanced scorecard approach for evaluating the performance of hot spring hotel. A DANP hybrid MCDM model is adopted to solve the dependence and feedback problems, while establishing a performance evaluation and relationship model. An empirical case study is presented to demonstrate the effectiveness of the proposed hybrid MCDM model. Based on this study, the perspective between ‘learning and growth’, ‘enterprise's internal processes’, and ‘customer’, all aim for solid financial performance as the ultimate goal, and report a positive influence. This effective performance evaluation model developed by applying the hybrid MCDM enables business managers to understand the appropriate actions and achieve a competitive advantage.     

Fuzzy Rasch model in TOPSIS: A new approach for generating fuzzy numbers to assess the competitiveness of the tourism industries in Asian countries

This study proposes a novel approach, the Fuzzy Rasch model, which combines Item Response Theory (IRT) and fuzzy set theory. This paper applies the Fuzzy Rasch model in Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) to analyse the Tourism Destination Competitiveness (TDC) of nine Asian countries: China, Hong Kong, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand and the Philippines. The study was conducted in 2009 using 6 criteria and 15 indices. The results demonstrate the feasibility of applying the Fuzzy Rasch model in TOPSIS to analyse TDC in Asian countries. In addition, the proposed model also provides an effective means of applying the MCDM method to study TDC. Furthermore, in 2009, the Asian countries were ranked from most to least competitive as follows: China, Japan, Hong Kong, Malaysia, Thailand, Singapore, Taiwan, Korea and the Philippines.