Cost structure of hospitality industry

Hospitality industry is one of the industries that develop the fast in theworld. With this characteristic of it, the hotel managements in the hospitalityindustry assisting the employment and economy more and more day by dayindicate different features from the other industrial managements with theiroriginal characteristics. These characteristics are effective on the cost of hotelmanagements, and at the practice, it causes some generalizations on thesubject that the costs of hotel are completely fixed.Recently, because of the tourism competition increased internationally,managements have been deprived of possibility for keeping their profit marginsby means of price adjustments against the increasing input costs. Therefore, bycontrolling their costs more seriously and saving more, managements have tokeep or increase their profit margins. In this context, it hasn?t been a solution tothink all the elements of the managements completely fixed. Nevertheless, it isfar from the reality to agree the cost components of hotel managements as fixedcompletely.In the scope of the thesis, concerning the above explanations, the costanalysis has been performed indicating that the generalizations carried outabout the hotel costs isn?t valid for every situation and every management, thatthey include a great deal of variable elements, although some costs thought asfixed completely indicate difference from hotel to hotel. By this analysis, the totalfunctions of cost have been obtained analyzing the fixed and variable elementsof different types of costs. Thus, beside the pricing decisions of themanagements, it is aimed to reach the total cost functions that they can use atperforming the foresights of cost over the future.In order to perform the above mentioned objectives, this thesis includesthree parts. In the first part, the basic concepts are mentioned concerning thelodging managements, and in this scope, some explanations have beenperformed on the general characteristics of the lodging managements, theirorganization structure, and classification convenient to the objective of thethesis.In the second part of the thesis, starting from the reasons of therequirement for information of cost, some sort of knowledge has been presentedabout the differences of lodging managements according to the costs and aboutdifferent costing methods. Furthermore, at the end of the part, as convenient tothe main objectives of the thesis, some kind of explanations have beenpresented concerning the methods used at cost structural analysis and amongstthese methods, the problems met while using the ones suitable to the lodgingmanagements.In the third and final part especially practical one, there exist the generalcharacteristics of the hotels analyzed in the scope of the thesis, measuring theprogress followed during the analysis and the frame and abbreviationsconcerning this progress, and the sensitivity of the expense types which consistof the cost of the services performed in the hotels against the activitymeasurement (occupancy), and the analysis for determining the total costfunctions. In addition, other than the analysis for the structure of variability,descriptions have also been performed on the share in the total expenses ofexpense types and thought within the cost structural analysis, and about theanalysis of the expense types for each room sold.