Based on the 1989 survey data of Taiwan's tourism industry, this paper uses DEA to assess technical efficiency of travel agencies in Taiwan, and applies the Tobit censored regression technique to examine the relationship between technical efficiency and firm-specific characteristics. The empirical results show that a travel agency's size has a negative impact on its technical efficiency. Travel agencies located in Taipei are less efficient than those located in other areas of Taiwan. Travel agencies with a branch or branches are less efficient than those without any branch. Travel agencies specialized in providing outbound business as well as visiting relatives services and majored in short-haul outbound tourism service are more efficient than other types of travel agencies. Technical efficiencies of travel agencies established before and after the entry deregulation are not statistically different.