Measurement of tourist hotels׳ productive efficiency, occupancy, and catering service effectiveness using a modified two-stage DEA model in Taiwan

•This paper uses a modified two-stage DEA model that allows for multiple efficiencies to be calculated in the unique stage.•The concept of intermediate input is introduced.•Using 58 Taiwanese international hotels, the results show the modified model is more effective.

This study develops a modified two-stage model to evaluate productive efficiency, occupancy, and catering service effectiveness of Taiwan׳s international tourist hotels. The difference between the modified and original two-stage model is that the modified two-stage model allows for multiple efficiencies to be calculated in the unique stage and the concept of intermediate input is introduced.The modified model was tested using 58 Taiwanese international hotels and the results show the modified model offers a more efficient and effective approach in calculating all the efficiencies in a single data envelopment analysis (DEA) implementation as opposed to independent efficiency calculations.