APPLICATION OF TARGET COSTING METHOD IN HOSPITALITY INDUSTRY

Abstract

With the development of technology, transportation possibilities have been diversified and the communication network has expanded considerably. Service companies that want to stand out in the global competition and provide better quality service have also had to change their production and sales policies. In hospitality indutry, which have an important place among service businesses, maintaining customer satisfaction and providing higher quality service has become one of the most important success factors. The sustainability of the services provided and the sustainability of customer satisfaction required cost management systems to be handled from a more modern perspective and supported the cost reduction efforts of the enterprises. In this article, the effect of target costing, which is one of the contemporary cost approaches, on the hotel companies and their effects on pricing policies are examined and practical issues are mentioned.