Measuring pure managerial efficiency of international tourist hotels in Taiwan

Abstract

This paper applies the four-stage DEA procedure to calculate the pure managerial efficiency of 54 international tourist hotels in Taiwan. The main empirical findings include: (1) the operating environments do affect input slacks, and the efficiency scores of traditional DEA; (2) ‘city hotel’ is an unfavourable operating environment, ‘chain-operated hotel’ is a favourable one; (3) after purging the effect of operating environments, there is no significance in pure managerial efficiency due to differences in management style, and the pure managerial style of resort hotels is no longer more efficient than in the city hotels.