Variable and Fixed Costs in hotels

Variable and Fixed Costs in hotels:

 

The terms Variable costs and variable costs in hotel operation is used to distinguish between those costs that have no direct relationship to Hotel occupancy or business volume and those that has relation to occupancy and business .

Fixed Costs

Fixed costs are normally not effectecd by changes in occupancy or sales volume. They are said to have little direct relationship to the business volume because they do not change significantly when the number of sales increases or decreases.

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