Research On Cost Control Of Small Travel Agency Based On Activity Cost Management

With rapid development of China comes the remarkable boom of tourism industry, whichaggravates stiff competition among practitioners. The small travel agency are barelystruggling with the huge shock of large travel agency and the Internet travel company. Thecost control issue is regarded as the key approach to rescue small travel agency from thestraits. This paper focuses on cost control method of small travel agencybased on activity cost management, and hopefully provides valuable benchmark for relevantpractitioners.This paper analysis the results of previous studies by using literature, and tease relatedtheories of activity cost management. At the same time, this paper analysis the difference ofactivity-based cost management and traditional cost management, elaborates the superiorityof the activity-based method by the use of comparative analysis. In addition to standardizedresearch method, this paper also uses case analysis method. Based on the detailed data andstatistics of Hebei Taida travel agency, this paper analysis the cost control vulnerabilities ofHebei Taida travel agency using the activity-based cost management method, and put forwardthe corresponding solution measures, so as to achieve the objective of reasonable costcontrol management through activity-based cost management method. Three conclusionscould be got from the Hebei Taida travel case analysis: Activity-based cost managementmethod is suitable for the small and medium-sized travel agency. Activity-basedcost management method can help control the cost of the small and medium-sized travelagency. The Activity-based cost management can enhance the competitiveness of the smalland medium-sized travel agency. At the same time, this paper gets three implications: Thesmall and medium-sized travel agency managers should strengthen the operation costmanagement.Compared with large travel agency, the small and medium-sized travelagency have fewer resources, the transition from semi activity-based cost management to fullactivity based cost management can reduce the cost and risk of implementing theactivity-based cost management method. Small and medium-sized travel agencyshould always follow the principle of proportion of income and expenses. Based on the premise of satisfactory of customers, small and medium-sized travel agencies should adoptthe activity based cost management method to reduce business costs, improve thecompetitiveness of enterprises.The innovation of this paper: Because of the limitation of data accessibility,domestic research on small and medium-sized travel agencies is scanty. This paper gets thereal business data through the field investigation of Hebei TEDA travel agency, and testifythe practicability of activity based cost management method in small and medium-sized travelagency.