Scale and scope economies of international tourist hotels in Taiwan

Based on the survey data of Taiwan's international tourist hotels in 2000, this paper applies Zellner's seemingly unrelated regression technique to a simultaneous system of a translog multi-product cost function and its corresponding factor share equations to investigate the extents of scale and scope economies of Taiwan's international tourist hotels. The empirical results show that product-specific scale economies exist for accommodation, food and beverage, as well as other services. Ray scale economies are significantly present. Economies of scope exist in providing food and beverage and other services jointly, as well as accommodation and food and beverage services jointly. However, economies of scope may not be present when accommodation and other services are jointly provided.     

Cost structure and productivity growth of the Taiwanese international tourist hotels

This study investigates the cost structure and economic implications of the Taiwanese international tourist hotel industry. A multi-product translog cost function with three inputs and three outputs is estimated using seemingly unrelated regression estimation and three-stage least squares. A balanced panel dataset consisting of 47 international tourist hotels in Taiwan over the period 1997–2001 was obtained from Taiwanese Tourism Bureau and used to estimate the cost function. The results show that both scale and scope economies exist in the Taiwanese international tourist hotel industry. In addition, productivity growth is positive over the study period. Managerial and policy implications for the Taiwanese international tourist hotel industry are also discussed.     

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.     

Cost Efficiency and the Choice of Operation Type: Evidence from Taiwan's International Tourist Hotels

This study investigated the endogenous relationship between the differences in cost efficiency and hotel owners' choices of either remaining an independently operated establishment or joining an international chain. We applied observations of 72 international tourist hotels in Taiwan from 1997 to 2008 to a simultaneous equations model with qualitative and limited dependent variables. The study results suggest that joining international chains significantly improves cost efficiency. We also found that net gains from improving both cost efficiency and hotel location are the two foremost determinants for an owner's decision to join an international hotel chain.     

Cost Efficiency of International Tourist Hotels in Taiwan: A Data Envelopment Analysis Application

This paper uses the data envelopment analysis approach to measure cost, allocative and overall technical efficiencies of international tourist hotels (ITHs) in Taiwan during 1997–2006. There are three outputs, three inputs, three input prices and four environmental variables in the empirical model. The cost inefficiency of these hotels is from overall technical inefficiency. International tourist hotels in Taiwan have an average efficiency of 57%. Chain systems, non-metropolitan areas and occupancy rate have significantly positive impacts on all efficiency scores of Taiwan's ITHs. The distance from the nearest international airport significantly worsens their efficiency scores.     

Factors influencing food and beverage employees’ career success: A contextual perspective

This study explored the important influential factors of Food and Beverage employees’ career success in international tourist hotels and identified relationships among these factors from contextual perspectives. Data was obtained from a sample of 481 respondents drawn from 22 international tourist hotels in Taiwan and analyzed with the AMOS program. The structural equation modeling results showed that multiple contexts influenced the career success of F&B employees in international tourist hotels, such as the Micro-System, the Meso-System, including organizational psychological factors, the Exo-System, and the Macro System contexts. In particular, the Exo-System context was the most direct influential factor for career success.     

Developing a Forecast System for Hotel Occupancy Rate Using Integrated ARIMA Models

Abstract

International tourist hotels play a consequential role in the development of the tourism industry. The occupancy rate is usually considered a pertinent indicator in measuring the performance of the hotels. This study employs the ARIMA and ARIMA transfer function model incorporated with the Box-Cox transformation function for the forecasting of occupancy rate. The results of this research find two explanatory variables strongly affect the occupancy rate: one is the numbers of tourists and the other is the Taiwan/ Japan foreign exchange rate. The forecasting shows slow rising of the occupancy rate for the international hotels in Taiwan; it will reach 64.67% by the year 2000. The forecast of the occupancy rate provides important information tor both government agencies and hotel managers so that corresponding management strategies can be made.     

Carbon dioxide emissions generated by energy consumption of hotels and homestay facilities in Taiwan

In the field of the tourism, hotels and homestay facilities account for considerable amounts of energy consumption and CO₂ emissions. This study presents an investigation conducted on the CO₂ emissions from four types of hotel in Taiwan. According to the results, the average CO₂ emissions of international tourist hotels, standard tourist hotels, general hotels, and homestay facilities are 28.9, 19.2, 12.5, and 6.3 kg-CO₂/person-night, respectively. Hotels with higher service levels produce higher average CO₂ emissions per person-night. Analytical results indicate that increasing stays at hotels with low CO₂ emissions (such as homestay facilities and general hotels), accommodating more guests together per room, and enhancing energy usage efficiency, can effectively reduce hotel CO₂ emissions without reducing the total number of guests. The results of this study may be applied to CO₂ reduction programmes for tourists, hotel enterprises, and contribute toward the formulation of government policy in Taiwan.     

Hospitality Industry Responses to Climate Change: A Benchmark Study of Taiwanese Tourist Hotels

Hotels are one of the tourism businesses most vulnerable to climate change because of their fixed assets. Results are presented of a baseline study that explores the awareness, attitudes, and behaviours of Taiwanese tourist hotels with respect to climate change and its potential impacts as well as their overall environmental practices. Tourist hotels are defined by the Taiwanese government as hotel establishments of over 80 rooms in rural areas and 50 rooms in city areas. Although the 104 tourist hotels represent only 3.7% of the total number of hotels in Taiwan, they account for over half of international guest nights and had a combined revenue of over TWD$43 billion in 2010. Questionnaires were distributed via email to all tourist hotels in Taiwan and 45 valid returns were received, representing an effective response rate of 43.3%. The results of research illustrate the level of understanding of climate change within Taiwanese tourist hotels and identify the specific climate change adaptation and mitigation strategies that tourist hotels have initiated. Access to such baseline data provides a potentially significant contribution to evaluating the response of the Taiwanese accommodation sector to environment change as well as providing a basis for further comparative studies and benchmarking.     

Operating Efficiency of International Tourist Hotels in Taiwan by Taking Into Account Congestion

ABSTRACT

This study measures the congestion efficiency of 69 international tourist hotels (ITHs) in Taiwan between 1998 and 2009. Out of 69 ITHs, 62 faced a congestion situation and the number of guest rooms and total floor spaces of the catering divisions are the main congesting factors. The distance to a mass rapid transit station, pick-up service, and established years have significantly negative effects on congestion efficiency of ITHs, while the distance to nearest airport has a significantly positive impact on efficiency. American and Japanese tourists, independent ownership, and rural location significantly help improve an ITH’s efficiency.     

Impact of location on profitability in the Spanish hotel sector

This paper analyzes the impact of market structure on hotel profitability in a sample of 8992 Spanish hotels in 2005–2011, using variables relating to the hotel and tourist destination in addition to structure–conduct–performance (SCP) and Chicago School frameworks simultaneously. The results show that profitability depends largely on the market structure and the level of demand of the tourist destination and we confirm the SCP proposals. Regarding characteristics of each hotel, there are unobservable characteristics which influence on profitability and we identify the existence of economies of scale.     

Market size,scale economies,and tourism market structure: A case of historic water town tourism in China

The historic water towns in the Tai Lake Basin are representative of tourism products featuring a unique cultural heritage landscape and the local way of life in eastern China. Since the 1980s, this market has experienced phenomenal growth in both the quantity of water towns and the scale of tourist arrivals. Drawing from industrial economics theory and an agent-based modeling approach, we examine the structural evolution of this market. Simulation results show that scale economies and market size are a pair of opposite forces driving the evolution of the historic water town tourism market structure, where scale economies play a role as a barrier to deter potential entrants and ensure superprofits for existing water towns, while an expanding market size creates opportunities for entry. Theoretical and practical implications are discussed, and management recommendations are made for tourism destinations competing with identical products and services.     

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.     

The influence of uncertain demand on hotel capacity

We examine the effects of uncertain demand on hotel capacity using the operation data of international tourist hotels in Taiwan from 1996 to 2008. Abel (1983) argued that demand uncertainty leads to an increase in the capacity of a firm if uncertain demand takes the form of output price uncertainty for the competitive market. We empirically test Abel's model. Our findings support the demand uncertainty hypothesis in Abel's model. Moreover, our results indicate that effective management of hotel capacities is a more important issue for managers of medium-sized hotels than for small or large-sized hotels in the Taiwanese hotel industry.     

Privatization,market competition,international attractiveness,management tenure and hotel performance: Evidence from Slovenia

This paper tests several hypothesis related to the impact of privatization, market competition, management tenure and international attractiveness on the cost efficiency of tourist hotels. We measure efficiency using the innovative Bayesian frontier methodology. The data involve a sample of Slovenian hotels which operate in a highly dynamic environment. From the results, it is clear that hotel efficiency is positively related to privatization and international attractiveness, and negatively related to longer management tenure. No significant link, on the other hand, is found between market competition and hotel efficiency. Further discussions of these findings and related managerial implications are provided.     

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.     

Innovation in hotel services: Culture and personality

The growing competition arising from burgeoning global markets exacerbates the demand for hotels to innovate their services and processes to continuously ensure success. To identify the processes that ensure excellent service and innovative performance, this work employs a literature review and series of questionnaire surveys of 185 employees working at international tourist hotels in Taiwan, to examine the relationships among service innovation culture, proactive personality, charged behavior and innovation. This work contributes to the service innovation literature by demonstrating that environmental forces outweigh individual forces in shaping innovation behaviors.     

Antecedents and consequences of job satisfaction in the hotel industry

The purpose of this study is to investigate the antecedents (i.e., role ambiguity and conflict, burnout, socialization, and work autonomy) and consequences (i.e., affective and continuance commitment, absenteeism, and employee turnover intention) of employee job satisfaction. Data obtained from a sample of 671 respondents drawn from 11 international tourist hotels in Taiwan were analyzed with the LISREL program. According to the results, role conflict, burnout, socialization, and work autonomy, but not role ambiguity, significantly predicted job satisfaction. In addition, job satisfaction significantly contributed to psychological outcomes in terms of organizational effectiveness (i.e., greater affective and continuance commitment and lower employee turnover intentions).     

Facilitating Benchmarking with Strategic Grouping and Data Envelopment Analysis: The Case of International Tourist Hotels in Taiwan

For a performance measure to be instructional in future operations, selecting the right strategic groups of firms from which appropriate benchmark targets are to determined is important in the development of business strategies. The immediate question is how to group firms and choose the best benchmark. In this study, a revised context-dependent data envelopment analysis model is applied to identify multilevel strategic groups. Empirical data are obtained for 56 international tourist hotels in Taiwan. Five strategic groups are identified in terms of efficiency frontiers, and the hotels within the groups are ranked by attractiveness scores that reveal their competitiveness. The hotels are also assessed by progress scores that reveal the effort needed for them to advance to a higher level. By integrating both these scores, a clear benchmarking path is designed for each hotel. This path can guide inefficient hotels to identify suitable role models for excellence.