Efficiency and effectiveness evaluation model — The case of international tourist hotel in Taiwan

Abstract

Most of the researches discussed the evaluation of hotel performance emphasized the operational efficiency and resources usage. The discussions about the ability to fulfill customer needs and to increase utilization of the services provided by a hotel are relatively rare. This study applies Data Envelopment Analysis (DEA) model to evaluate both efficiency and effectiveness of the international tourism hotels (ITHs) in Taiwan. The results show that there are 17 ITHs have reached efficiency and 7 ITHs have reached effectiveness during 2008. However, there are only 5 ITHs have achieved efficiency and effectiveness at the same time. The results may suggest that the ITHs care more about the utilization of resources, however, the services provided by ITHs did not been fully used by their customers. Therefore, the ITHs should pay more attentions on their customer needs and further provide services that fit customer needs.