Research On Cost Control Of Hong Chuan Hotel Based On Value Chain

In recent years,with the continuous promotion of reform and opening policy and the improvement of people's living standard,China's tourism industry has achieved rapid development.Star hotels have faced with an increasingly competitive market because of the rise of various economic hotels and the expansion of foreign hotel brands.As a key factor to measure the company's operating level,cost control is an unavoidable problem for hotels.Star hotels have to provide a variety of service products to meet needs,so their cost objects are diverse.The original cost control system has many deficiencies,and it needs to make corresponding improvements to adapt to the trend of the time and changes in the market.Costs are generated in all aspects of the business process.Starting from the perspective of the value chain,cost control can be used to grasp opportunities more effectively and promote the competitiveness of enterprises.Owing to the high operating costs and insufficient customer resources,Hong Chuan Hotel does not have a competitive advantage.Firstly,this article summarizes the research on the value chain and cost control and analyzes the necessity of using value chain to control the cost from internal and external aspects.After analyzing the status of the hotel operating environment and cost control system,the paper constructs the internal and external value chain of Hong Chuan Hotel according to the theory of value chain and discovers the problems from three major links of procurement,service and sales.The imperfect cost control institution,the incomplete system of hotel cost control system,the weak awareness of full-cost control and the incomplete control of cost control objects are the main causes of problems.Afterwards,on the basis of the actual problems of the hotel,corresponding improvement suggestions and supporting safeguard measures were put forward.In order to provide a theoretical basis and practical experience for the long-term sustainable development of the company,this article adopts the method of case analysis,combining the value chain theory to broaden the scope of enterprise cost control.