Target costing management?s evaluation of applicability in the accommodation businesses and application in a tourism business

Increase the competitive pressures even more with globalization in today's conditions, businesses have lost the freedom to set prices regardless of the market. Accommodation businesses come to a position to sell the all inclusive accommodation services which is appealing to the mass tourism with foreign tour operators? price pressure to increase occupancy rates even though they damaged because of the competitive pressures. This directs them to think short term and lead to sacrifice quality. However, consumers want to buy better quality products with lower prices so accommodation businesses have to develop long term perspective. In addition to the influence of increasing competition, quality and low price are not enough to stay in the market. Accommodation businesses have to produce their all inclusive accommodation service will make a difference as compared to its competitors with consumer focused and stay the long term in the market. This requires to reduce costs and improve the service product continuously during the service product's life cycle.Accommodation businesses can implement the target costing management. In this way, they transmit the foreingn tour operators' price pressure to their own suppliers and they can produce their service products with quality and long term perspective. However, in target costing management which is important to develop performance with other members of the supply chain and develop mutually benefical relationship with them, so the price pressure on suppliers aims to develop their design capabilities and transmit this pressure to their own suppliers and provides to continue the target costing management with chaning.Keywords: Accommodation Businesses, Target Costing Management, Supply Chain, All Inclusive Accommodation Service