The true managerial efficiency of international tourist hotels in Taiwan: three-stage data envelopment analysis

This study uses international tourist hotels in Taiwan as samples to measure the true managerial efficiency of international tourist hotels based on the three-stage data envelopment analysis (DEA). Three operation models are tested, namely, group and non-group entities, chains and independents, and large- and small-scale entities, to explore the operation factors determining the management performance. Empirical results show that group operation is not the main determinant of operation efficiency of international tourist hotels, whereas small-scale hotels (those with rooms fewer than 300) and chain hotels have significantly superior operational efficiency. By using a three-stage DEA, the management can avoid erroneous resource distribution decisions and enhance managerial efficiency.