Strategic Value Chain Costing and Accounting in the Indian Hotel Industry

Posted: 18 Sep 2009

See all articles by Padma Srinivasan

Padma Srinivasan

Manipal University, Bangalore Campus

Date Written: September, 16 2009

Abstract

Value chains of the hotels are very extensive with many values being handed out to the customers as ‘More Value for the money’ has been the code of business now. The hotels are rapidly cobranding, tieing up for various synergies with banks, financial service providers, tourist operators, airways and gift producers and others. They strategize to work the best competitive rack rates with value adds. They are seeking creative and innovative ways to make the values attractive enough to solicit repeat custom. They are also trying to even out the seasonality factor by bringing international tourists making their hotels attractive with standard facilities of international expectations.

One of the techniques that may be used by the Hotel industry is analyze its service value chain, Trace costs based on these value extensions and work for ‘pricing’ services to retain the corporate and regular customers. They plan and make strategies to fit the extensive value chain keeping in view ‘Some things may come free, but all things cost’. Here the author has tried to look at the hotel’s value chain and how the industry adds value for the price charged and the way such exchange is recorded in the books. Value centers are created with a mild impact on cost but can leverage the business of the hotels.

Keywords: Strategic Value Chain Costing, Value Chain Accounting, Indian Hotel Industry Accounting, Value Chains of hotels

JEL Classification: M41, M48

Suggested Citation

Srinivasan, Padma, Strategic Value Chain Costing and Accounting in the Indian Hotel Industry (September, 16 2009). Available at SSRN: https://ssrn.com/abstract=1474138

Padma Srinivasan (Contact Author)

Manipal University, Bangalore Campus ( email )

Bangalore, Karnataka
India

HOME PAGE: http://www.manipal.edu

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