Optimizing Hotel Profitability: How Cost System Sophistication Drives Financial Performance in the Hotel Industry

Cengiz E., KAYNAKCI E., Nanu L., Cavusoglu M.

Journal of Quality Assurance in Hospitality and Tourism, 2025 (ESCI, Scopus) identifier

  • Yayın Türü: Makale / Tam Makale
  • Basım Tarihi: 2025
  • Doi Numarası: 10.1080/1528008x.2025.2601706
  • Dergi Adı: Journal of Quality Assurance in Hospitality and Tourism
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, IBZ Online, ABI/INFORM, Hospitality & Tourism Complete, Hospitality & Tourism Index
  • Anahtar Kelimeler: competition, competition intensity, environmental uncertainty, Hotel industry, hotel size, sophisticated cost systems
  • Akdeniz Üniversitesi Adresli: Evet

Özet

This study investigates how cost system sophistication (CSS) enhances hotel profitability by examining the influence of hotel size, competition intensity, and environmental uncertainty on CSS and its impact on financial performance in the hotel industry. Using SEM on data from 171 Turkish hotels, results show hotel size indirectly enhances CSS via product diversity and cost structure, while competition and uncertainty directly increase CSS. In addition, CSS significantly boosts financial performance. Unlike manufacturing-focused research, this hotel-specific study highlights perishable inventory and seasonal demand, offering managers practical insights to leverage CSS to optimize resources and improve profitability in competitive, uncertain markets. It fills a gap in hotel management literature with actionable guidance.