An Analytical Study of Contemporary Cost and Management Accounting Practices in the Indian Hotel Industry: Evaluating Their Impact on Operational Efficiency and Customer Service

Abstract

As the hospitality sector increasingly adopts advanced accounting methods, understanding these practices’ effectiveness
is crucial for both practitioners and academics. This study conducts a comprehensive analysis of contemporary cost and
management accounting practices within the Indian hotel industry, focusing on their impact on operational efficiency
and customer service. This paper reviews existing literature on the evolution and current state of cost and management
accounting in hotels, identifies key performance indicators (Key Performance Indicators) for operational efficiency, and
assesses the influence of these accounting practices on customer satisfaction. Utilizing a mixed-method approach, the
research combines quantitative data from performance metrics with qualitative insights from case studies and customer
feedback. Findings indicate that modern accounting practices, particularly those integrating technology, significantly
enhance operational efficiency by streamlining processes and reducing waste. Moreover, improved accounting transparency
and accuracy have a positive correlation with customer service quality, leading to higher customer satisfaction and
loyalty. This study provides valuable insights for hotel managers, policymakers, and researchers by highlighting the
importance of adopting advanced accounting practices to achieve both operational and service excellence. It also proposes
recommendations for further research to explore the long-term benefits and potential challenges of these practices in
the hospitality industry.