Browsing by Author "Chen, Chiang-Ming"

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Business diversification in the hotel industry: a comparative advantage analysis
(2012-10-01)
Yeh, Chia-Yu
;
Chen, Chiang-Ming
;
Hu, Jin-Li
;
經營管理研究所
;
Institute of Business and Management
The accepted norm of hotels generating the highest portion of revenue from their room sales does not apply in the case of Taiwan. International tourist hotels in Taiwan tend to diversify their business by expanding their food and beverage (F&B) services. According to international tourist hotels' financial statements for 1996-2008 (published by the Taiwan Tourism Bureau), almost 60% generate higher revenue from their F&B services. Drawing on the concept of comparative advantage, this study assumes that a hotel's comparative advantage depends on evaluating the profitability between the F&B departments and the lodging departments. The authors propose a simultaneous equation model with qualitative and limited dependent variables, drawing on the interactions between hotel profitability and revenue structure. The empirical results show that hotels in which F&B services contribute the majority of the revenue have a profitability advantage.
Influence of uncertain demand on product variety: evidence from the international tourist hotel industry in Taiwan
(2011-12-01)
Chen, Chiang-Ming
;
Yeh, Chia-Yu
;
Hu, Jin-Li
;
經營管理研究所
;
Institute of Business and Management
Hotels provide many different types of rooms in terms of capacity as well as quality to diversify their products. This paper examines the relationship of uncertain demand and product variety by using monthly operation data from international tourist hotels in Taiwan during 2007-2009. First, the authors apply the two-stage least squares (2SLS) and random-coefficients models to estimate the demand function in Taiwan's international tourist hotel industry. They then examine the relationship between uncertain demand and product variety. The empirical results indicate that the market's uncertain demand significantly induces the hotels to expand their product variety.