ANALYSIS OF THE DYNAMICS OF PROFITABILITY AND PROFIT MARGIN IN THE HOTEL INDUSTRY: PROBLEMS AND SOLUTIONS
DOI:
https://doi.org/10.5281/Keywords:
profitability, profit margin, hotel industry, cost control, margin erosion, operational efficiency, economic transformation.Abstract
This study analyses the dynamics of profitability and profit margin in hotel enterprises under conditions of economic transformation, and identifies the underlying problems and possible solutions. Practice shows that growing revenue in hotel enterprises does not automatically translate into higher profitability. Using the example of two hotel enterprises in the Andijan region of Uzbekistan for the period 2019–2025, the study reveals two distinct problems: "margin erosion," where a stable revenue is accompanied by a sharp decline in profit margin, and a "low-profitability growth" pattern, where rapid revenue growth is accompanied by extremely low profitability. The analysis demonstrates that both problems originate in weak control over costs and operational waste rather than in insufficient revenue. The study proposes cost control, operational waste reduction, and personnel qualification development as key solutions.
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