Strategic Cost Management Research Of Thank Inn Express Hotel In Jilin City

With the rapid development of economy in our country, the per capitadisposable income has constantly improved, and China has fully accessed to thestage of mass tourism. The prosperity of economic activity brings more frequentbusiness and official activities at the same time, and greatly stimulated the publicdemand for the hotel to live. The hotel industry in our country, especially the budgethotel which provide convenient, comfortable living service has been facing a spurt ofdevelopment in recent years.Thank Inn express hotel ranks among top ten brands of China’s hotel chain, thecompany’s brand positioning is to become the top brand in the second-and third-tiercity. Thank Inn put forward the concept of “hotel chain in third-tier city”, and it hasbecome the first budget hotel brand which focus on the hotel chains in domesticthird-tier city. As the only franchise store in Jilin City, Thank Inn express hoteloffers the banquet services such as accommodation, catering and commerce.This article first analysis the current situation of Thank Inn express hotel’s costmanagement in Jilin City, made clear the upfront costs such as initial fees, siteselection and rental fees, infrastructure costs, operational and maintenance cost suchas human resources cost, procurement cost, energy cost, facilities maintenance costsand marketing costs. there are many problems existed in Thank Inn express hotel ofJilin City, such as ambiguity of management responsibility, weakness of costmanagement consciousness, dimness of cost management object and content,weakening of BGO management and softening cost management behavior. In view of the defects of traditional cost management, such as introversion,short-term and locality, according the theory of strategic cost management, with the“shank” model of strategic cost management, which includes three analytical tools:strategic positioning analysis, value chain analysis and strategic cost driver analysis,this paper analysis the cost management of Thank Inn express hotel in Jilin Cityunder a strategic framework. At last, The article put forward the strategic choice andsolution which is suitable for the hotel.