Research In Cost Management Of Budget Hotel In The Perspective Of The Value Chain Analysis

The main business of budget hotel is guest room operating.Usually the budget hotels are small, claiming a low price, and just have simple function. In 1997, Jin Jiang budget hotel was established in Shanghai. With the development of the tourism industry, the number of budget hotel is also increasing. By the end of 2014, the number of China's brand budget hotel has more than 8000, the number of single hotel has more than 840000. Some of those China's brand budget hotels are Jin Jiang budget hotel and Home Inn. However, the increase in the number of budget hotel and foreign brand hotel settled, making China's budget hotel facing increasingly fierce competition in the market. For a long time, managers in budget hotels have been using the traditional cost management method for the management service.Nowadays, the use of traditional cost management method cannot meet cost management needs. Under this background, this paper tries to provide a new thought of the cost management for budget hotel. The new thought is the introduction of the value-chain-cost management. The purpose of this practice is to meet the demands of the cost management in budget hotels and try to do some support for the competitive strength.The research steps are as follows. Firstly, introduce the background of this study and explain research significance. Secondly, defines the meaning of budget hotel on the basis of reading a lot of the relevant literatures, and introduces theoretical foundation which including the cost management theory, value chain theory and transaction cost theory, then put forward the basic framework of value-chain-cost management. Thirdly, current situation of cost management of budget hotel in our country is analyzed. In the fourth place, select the RJ budget hotel as the case for the study, introduce the basic information of the RJ budget hotel and analyze its business environment using the Potter's five forces analysis model, providing an industry background to case-hotel for its selection of competition strategy. In the fifth place, the detailed explanation of value-chain-cost management's application on RJ budget hotel. It's a good choice for RJ budget hotel to choose the cost-leadership-strategy based on the analysis of business environment. Then, analyze of the key cost drivers. The internal value chain and the external value chain are analyzed in detail.In the sixth place, the conclusion is drawn that the optimization and integration of the value chain are good for the management of RJ budget hotel.Using basic theory combined with case study, this paper put forward the general recommendations for the implementation of value-chain-cost management on budget hotel.Those recommendations are as follows: strengthening the management of human resources and then reduce the cost of human resources; to accelerate product innovation; increase in the use of information technology; coordination and cooperation partners. This thesis looks forward to make some contributions for the management of budget hotel.