Enhancing Pricing Accuracy through Activity-Based Costing: A Case Study of Patra Bandung Hotel in Post-Pandemic Indonesia
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Abstract
This study aims to examine the application of the Activity-Based Costing method in determining room rental prices at Patra Bandung Hotel. This research employed a descriptive analysis approach, utilizing semi-structured interviews with hotel finance personnel and collecting quantitative data from financial records covering overhead, operational, and maintenance costs from the fiscal year 2024. Furthermore, cost calculations based on the Activity-Based Costing method were applied to a sample of five room types, and the results were systematically compared to pricing structures previously established by the hotel management using traditional costing methods. The results showed that the application of Activity-Based Costing led to more accurate and generally lower cost allocations for several room categories, highlighting inefficiencies in the conventional pricing system. These findings have broader implications for cost control and pricing strategy in the hospitality industry, particularly for mid-sized hotels in developing economies seeking competitive advantage through financial efficiency.
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