A new method for activity-based modelling of customer profitability analysis in hotels
by Hara Kostakis, Odysseas Pavlatos, Leo Kounis
International Journal of Advanced Intelligence Paradigms (IJAIP), Vol. 3, No. 1, 2011

Abstract: This paper introduces a methodology for activity-based modelling of customer profitability analysis (CPA) in hotels. It proposes a methodology for defining and effectively addressing cost drivers in the hotel industry. This study also combines three methods (association rule mining – ARM, simulation and ABC) for the purpose of making accurate cost estimations. Activity-based costing (ABC) uses as input the corresponding output produced by the simulation of the relevant cost drivers. The presented methodology eliminates the need to estimate empirical distributions of all simulated cost drivers. This is achieved with the use of data mining techniques, particularly ARM. ARM finds dependencies between a cost driver, whose estimation is time-consuming, with another cost driver, which can easily be calculated. This dependency can lead the user to the estimation or calculation of the former. The methodology provides more accurate accounting information with regards to the various market segments in the hotel industry in a CPA context.

Online publication date: Tue, 30-Sep-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Advanced Intelligence Paradigms (IJAIP):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com