Study Of The Cost Control Of Online Travel Companies Based On Enterprise Value

With the improvement of the disposable personal income of Chinese people,the demand of travel has been increasing rapidly,and tourism has evolved into a lifestyle that is popular and frequent.However,the market of online tourism,a market where the annual trade size is as high as hundreds of billions,losses are common,and the competition among online travel companies has been increasingly fiercer.Lowering cost is the most effective and powerful weapon to defend pressure when the entire industry is in a state of total competition.To gain competitive advantages,a company has to attach importance to cost control.Traditional cost control methods,however,often emphasize cost reduction to the maximum extent.Therefore,a company shall have long-term,sustainable and insightful strategic way of thinking to advance with times,and sees the improvement of enterprise value as the ultimate goal.In view of this,this paper starts from the perspective of cost control and provides thoughts in many aspects regarding the development of online travel companies in the future,hopefully to provide conducive references for the actual management of online travel companies.Chinese listed online travel companies are used as research objects in this paper,and the research background of the common losses and fiercer competition in the business of online travel is pointed out,as well as the theoretical and practical significance of the strengthening of cost control.The limitations of traditional cost control methods on the study of the cost control of online travel companies are proposed,and strategic cost control method in the broad sense is put forward.Ctrip and Qunar as used as study cases,and the actual business models and the organization of business process of them are analyzed,while existing problems are analyzed through activity-based costing,and the causes are discussed,all of which are very persuasive for online travel companies to control their cost.With the establishment of the empirical models of the cost input and enterprise value of online travel companies,cost control variables and enterprise value measurement indicators are selected to find out the key cost variables that significantly affect enterprise value,providing methods for more targeted cost control of companies,more effective cost control,the establishment and perfection of cost control systems.The promotion of strategic cost concept is also helpful for the sustainable development and the improvement of corporate competitiveness.