Exploring the Factors Affecting Hotel Outsourcing in Taiwan

Abstract

Abstract Two studies were conducted to examine factors affecting hotel outsourcing in Taiwan. In study 1, interviews with senior hotel managers were analyzed to explore the factors determining a hotel's outsourcing of different services. The results of the questionnaire survey used in study 2 indicated that the current and desired percentages of outsourcing for international tourist hotels in Taiwan were very low, indicating that strategic outsourcing has not received much attention in that part of the Taiwanese hospitality sector. The hotel departments that were most often outsourced were housekeeping, security, maintenance and information systems. Study 2 also showed outsourcing decisions were based only on a hotel's resources. The effect of predicting outsourcing was not significant for transaction costs. The results of this study provide both hotel management and outsourcing service providers with insights into hotel outsourcing in Taiwan. Keywords: hotel outsourcingtransaction costshotel resourcesasset specificityinternational tourist hotels