Research On The Cost Management Of The Hotel Companies In China

Since the reform and opening up, the tourism industry has become China’s most dynamic andpotential industry gradually. Economic entity hotels, which are tertiary industry, occupy animportant position in the national economy. It is the substance bearers of tourists’ accommodationand basic living.As an emerging industry, the hotel industry has many management loopholes. Profits are oftenthe ultimate goal for economies. Its profit is mainly from the increase in operating income and strictcost control. With the vigorous development of the tourism industry, the hotel industry’s operatingincome showed a gradual growth trend. Therefore strict cost control and management is becoming amajor issue for enterprises.The paper’s goal is to establish cycle cost management mode system. The value chain analysisis throughout the enterprise life cycle. In order to actively reduce the non-value-added part of thehotel internal value chain, it analyses the location of the hotel in the entire value chain system. Inthe use of PEST analysis, it clears enterprise’s own pros and cons, as well as the status of the entireenvironment. In this paper, enterprise-cycle cost management model is established by the analysisof value chain, and it helps enterprise to find new approach of cost management. Finally, in the caseof J Hotel, it analyses the value chain and competitive environment in the life cycle of J Hotel toclear its cost situation. At the same time, starting from a life cycle perspective, it builds a new costmanagement mode, hoping to help hotels to have a better cost management.This is a new attempt for the field of cost management, which use value chain analysis andenvironmental analysis and introduce the concept of life cycle. Also it plays an important role inpromoting hotel enterprises in the field of tertiary industry.