The provision of food and beverage services in hotels through target costing method: An application in Alanya district

Accommodation sector is a sector in which there is a heavy competitiveness in both local and international areas. In this sector the companies need to both meet the needs of their customers and compete with their rivals. If companies want to compete with their rivals they cannot increase the prices as this may cause a fall in demand rates. And they cannot reduce the costs as this may result in a fall in the satisfaction of customers. That's why the companies have to utilise the 'costing management methods' which are not traditional. One of these 'costing management methods' is 'target costing method'. For this aim in this study, a process of target costing and afterwards an instruction list were designed. In this application, target-costing has been benefited from with the purpose of ensuring cost-effectiveness of food and beverages. In the establishment subject to this application, it has been determined that food service is expensive and therefore cost reduction is a necessity. It has also been concluded that beverage service required more attention as it is relatively cheaper. Keywords: Accommodation Sector, Hotels, Target Costing