Title : Measuring customer profitability through time-driven activity-based costing: a case study at hotel x Jogjakarta
Author(s) : , and
Corresponding Author :
Section : Management Accounting and Costing
DOI : https: //doi.org/10.1051/shsconf/20173408004
Abstract
Traveling intensity has been higher in the past few years making the hospitality industry must be ready to provide the best service at optimum prices to customers who purchase and enjoy the services. Hotels as one of the accommodation service providers should be able to allocate resources accurately according to the actual needed capacity and thorough tariff policy to not lose the competition and obtain profit according to how much is projected. TDABC system is the most updated costing system which can assist the allocation of these resources. TDABC system is considered twice important to be applied in the service industry as service is intangible so costing system must show the exact and accurate number of resources used to provide the service. Through the TDABC system, Customer Profitability Analysis is conducted with the aim of knowing the level of profitability of each customer type possessions and classifying them as profitable or non-profitable customers. A case study was conducted in a five-star hotel located in the Special Region of Jogjakarta resulting in a profit recognized under the TDABC system that the traditional method used as the hotel's costing system failed to do so and more appropriate data on costs and profitability of customers.
