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Analyzing customer profitability in hotels using activity based costing

Faria, Ana Rita; Ferreira, Leonor Fernandes; Trigueiros, Duarte

This paper investigates the use of customer profitability analysis (CPA) in four and five star hotels located in Algarve (Portugal). Traditional accounting systems have been criticized for focusing on product, service or department profitability, and not on customer profitability, thus failing to provide effective information to marketing-related decisions. Results are reported by operating departments, whilst ...


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