Strategic planning of optimal resource allocation in response to global financial crisis – a study of international tourist hotels

Abstract

This study is principally designed to examine the changes in the efficiency, effective resource allocation and future operation strategies of Taiwan's international tourist hotel in global economic downturn. At first, we set up critical input and output factors and construct an assessment model using Data Envelopment Analysis (DEA) for analysis of relative efficiency. Further, we apply an allocative efficiency model for additional considerations of each input cost and analyse proper and effective resource allocation. Finally, there are significant changes in overall efficiency of international tourist hotels under global financial crisis. We can also reach an effective allocation of the overall resources. In such cases, lowering cost has become a key issue for sustainable operation of international tourist hotel. Finally, the greatest contribution of this study is to further classify the competitiveness and optimal cost allocation of Taiwan's international tourist hotels into seven categories based on the study results and propose strategic planning of future operations for hotel administrators’ reference in making improvements in the future.

Keywords:

• international tourist hotel
• data envelopment analysis (DEA)
• allocative efficiency (AE)
• strategic planning

JEL Classification::

• D61
• C67
• C51
• C52

Notes