A Study Of The Impact Of Operating Expense On Financial Performance Of Companies In Indian Hospitality Sector

Abstract

The impact of operating expenses on company performance management in the Indian hospitality sector is crucial as it directly influences profitability and sustainability. Efficient management of operating expenses can help businesses maintain competitive pricing, improve service quality, and enhance guest satisfaction, ultimately leading to better financial performance. Given the high variability in operating costs across different types and sizes of hospitality businesses, as evidenced by the significant differences in mean operating expenses, managing these costs effectively is essential. This can involve optimizing labor costs, reducing waste, and improving energy efficiency. In a sector where margins can be thin and competition intense, controlling operating expenses is vital for maintaining profitability and achieving long-term success. The study is based on secondary data. The area of research is hospitality sector.