Skip to main content

A stochastic DEA study of hotel efficiency

Buy Article:

$55.00 plus tax (Refund Policy)

Abstract:

This current study is the first to apply Stochastic Data Envelopment Analysis (SDEA) approach to assess the efficiency of hotels. The determinants of hotel efficiency were also investigated employing the Tobit regression model approach. The SDEA results show that the SDEA efficiency measures are higher than the deterministic ones and the greater the stochastic variability of outputs, the closer the envelope moves successively to any given observation and the efficiency score approaches one. The optimal solution to SDEA involves the presence of some buffer (slack) of all outputs. In applications involving practice production situation, such buffer (slack) can be interpreted as the firms' need to hold inventory, excess capacity and organizational slack against stochastic uncertainty of market environment. Our results also indicate that resort hotels achieve better efficiency than those in metropolitan areas and operating as part of a chain is not the main determinant of the efficiency of international tourist hotels in Taiwan.

Document Type: Research Article

DOI: https://doi.org/10.1080/00036840701858091

Affiliations: 1: Department of Travel Management, Jinwen University of Science and Technology, Taipei, Taiwan, ROC 2: Department of Hotel Management, Jinwen University of Science and Technology, Taipei, Taiwan, ROC 3: Department of Business Administration, Vanung University, Taoyuan, Taiwan, ROC

Publication date: 2010-08-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more