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The cost structure of the hotel industry

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Assistance with outlining and researching a paper about the cost structure of the hotel industry.

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The cost structure of an industry tells us about is leverage. A low cost structure would indicate a low proportion of fixed to variable cost. The hotel industry generally exhibits a high cost structure, with upscale hotel having very high cost structures. This is because of the construction costs for lavish accommodations. Less luxurious hotels will have more variable expenses, in proportion to fixed. The cost structure directly impacts profitability. While a company with a low cost structure finds its expenses decline quickly when business falls off, this is not ...

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