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.     

Analysis of career competency of food and beverage managers in international tourist hotels in Taiwan

The purpose of this study is to establish indicators of career competencies of food and beverage managers in international tourist hotels in Taiwan. Panel discussions and the Delphi technique were adopted. Two panel discussions were conducted with a total of 11 industry experts and seven academic experts. The framework of career competencies was established based on these experts’ opinions. Delphi questionnaires were sent to 23 experts 13 in the hospitality industry and ten academic experts to collect data. By using such questionnaire twice, the 23 panelists reached a stable consensus. The results indicate career competencies include two categories: (1) career planning and development, and (2) core employability. The data demonstrated that the core employability competency was slightly more important for an individual's career development than the career development and planning competency.     

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.     

Factors affecting hotel human resource demand in Taiwan

This study explores the factors affecting hotel human resource (HR) demand and focusing on the organizational, industrial and macroeconomic factors of the hospitality industry. A prediction model was built with eight independent variables and four dummy variables. Secondary data was collected via a governmental statistic database, and regression analysis was performed using the Generalized Least Squares (GLS) method. The results show that the HR demand of international tourist hotels is more likely to be affected by industrial factors and macroeconomic factors, while the HR demand of standard tourist hotels is less complex, and is mainly affected by organizational factors.     

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.     

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.     

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.     

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.     

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 future of the State-owned hotels in China: Stay or go?

Hotel sector was the first one to employ joint venture in China after its ‘Open Door Policy’ in 1978. In transition from production unit to business unit, the operating system of China's State-owned hotels (SOHs) has changed greatly. Though its hotel industry has become more open, many of the tourist hotels are still State-owned enterprises (SOEs) today, and they account for over half of the loss of all hotels in the country. This study aims to find out: first, critical issues causing those problems facing the SOHs; second, factors affecting the development of SOHs, and third, their future. Government ownership and its related problems, such as complicated ownership, bureaucratic structure and control, add difficulty to restructure SOHs. The future of the SOHs in China regarding whether to stay or to go very much depends on government policy and commitment on restructuring the industry which is vital to success and sustainability of SOHs in the socialist market economy environment.     

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.     

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.     

The relationship between CRM, RM, and business performance: A study of the hotel industry in Taiwan

This study aims to investigate the implementation of customer relationship management (CRM) and its effect on relationship marketing (RM) and business performance, through an analysis of the hotel industry in Taiwan. A survey on hotels, including general and tourist hotels, and bed and breakfasts (B&Bs) was conducted, and a total of 560 questionnaires were returned. The results showed that implementing CRM has a significant and positive influence on the RM effect, positively affecting business performance for both hotels and B&Bs. However, a comparison of the influential paths of relationship models between hotels and B&Bs showed that, for hotels, the Internet service and customer support functions of the CRM strategy are the main sources of influence on the RM effect and business performance, whereas for B&Bs, the marketing support function of the CRM strategy alone influences the RM effect and business performance. To achieve higher performance, the different types of hotel enterprises should understand their main advantage before implementing key CRM strategies.     

Types of agglomeration effects and location choices of international hotels in an emerging market

When international chain hotels are seeking new locations in which to establish new properties, local knowledge of those locations is essential for success. By incorporating agglomeration and internationalization research, this study investigates how international hotels can acquire that local knowledge from the existing hotels. The study presents two different kinds of hotel agglomerations (same-country-of-origin and higher-differentiation agglomerations) as sources of local knowledge and shows how international hotels might select their locations based on types of agglomerations and their entry strategies. The study employs conditional logistic regression, using a sample of international hotels in China. Results indicate that international hotels, especially those with franchising, are more likely to choose a location where the hotels from the same country of origin are highly located. Because they share the same culture and business practices, new hotel entrants may more easily assimilate the local knowledge that compatriot hotels have accumulated.     

Exploring Tourists’ Perceptions of Traditional and Contemporary Hot Springs Hotels in Japan

Hot springs and ancillary hotels have been a major tourist attraction in Japan. While some hot springs hotels preserve the traditional bathing and lodging facility, some incorporate contemporary layout in their design. The purpose of this study is to explore how international tourists perceive hot springs hotels in Japan. Data was collected online with two groups of samples from Japan and the United States, respectively. Participants were asked to evaluate hotels attributes and brand personality dimensions based on photos. U.S. tourists perceive traditional and contemporary hot springs hotels differently based on brand personality dimensions. Hotel managers should provide more excitement through an introduction of authentic dining, bathing, and lodging experience to customers while preserving the natural surrounding and physical features for attraction.     

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.     

A study of critical factors of the job involvement for hotel employees—Taking hotels in Taiwan as an example

The selection of staff is always a critical success factor for managers in the hospitality service sector. This work focuses on the front-line employees and supervisors of international tourist hotels as the study subjects to explore the direct effects of the individual guanxi networks and POS (perceived organizational support) of hotel staff on their job involvement, and examines the indirect effects of these via personality characteristics. For this paper, questionnaire surveys were utilized; 246 questionnaires returned, of which 221 were deemed valid samples appropriate for further analysis. Reliability analysis, EFA, CFA, and SEM were used to examine the data.     

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.     

Diversification strategy and financial performance in the Taiwanese hotel industry

This study categorized 25 highly market-diversified international tourist hotels into two sub-groups, based on the highest proportion of hotel revenue generated either by (1) food and beverage (F&B) services; or by (2) room services. We investigated the differences in financial performance of these two sub-groups and concluded that hotels with a major proportion of the revenue from F&B services obtained higher growth but unstable profit margins, compared to another group of hotels with profit mainly from room service. Our study results can serve as a valuable reference for hospitality industries to evaluate the tradeoff between investing more resources in room or F& B service, especially at markets where F&B is highly valued.     

Predictors of Career Success Among Lodging Revenue Managers: Investigating Roles of Proactive Work Behaviors

This study integrated the growing literature of proactive work behavior with career success among lodging revenue managers. Proactive work behavior is a timely, relevant, and important research topic for today’s workplaces in the hospitality industry. The aim of this research was to test a model for linkage among four dimensions of proactive work behavior and career success, among 280 lodging revenue managers, while controlling for work experience, age, and gender. First, the confirmatory factor analyses examined the measurement models of proactive work behavior and career success. Next, hierarchical regression analyses demonstrated that all four dimensions of proactive work behaviors contributed positively to subjective career success, but not objective (extrinsic) career success.