Abstract

Background: The hotel industry significantly influences regional economies, yet maximizing internal profitability remains challenging, especially for small businesses. Gap: Limited research addresses internal factors boosting profitability in regional hotel enterprises. Aim: This study examines how internal resources—like employee productivity and investment—impact profitability in Kashkadarya’s hotels. Results: Analysis shows profitability rates vary, with some hotels performing below the 8.77% average. Novelty: A predictive model reveals correlations between resources, labor efficiency, and profitability. Implications: Strategic resource optimization can enhance hotel industry profitability, offering insights for further research in similar sectors.

Highlights:

• Internal resources, like employee productivity and investment, are key to boosting profitability.
• Profitability varies significantly, with some hotels below the 8.77% average.
• Strategic resource optimization can enhance overall industry profitability.

Keywords: Hotel Industry, Profitability, Internal Resources, Financial and Economic Indicators

Introduction

Profitability indicators in economic entities are among the important financial and economic indicators that determine their development. Because in a competitive environment, every economic entity, including small businesses and private entrepreneurship, must ensure its economic and financial stability [1]. It is precisely in this case that it is necessary to constantly increase or maintain profitability indicators at a stable level. This requires the use of many ways to multiply it. One of them is the identification of internal capabilities and the development of ways to use them.

Therefore, it is currently necessary to develop theoretical and practical measures aimed at ensuring the effective functioning of each economic entity, including small businesses and private entrepreneurship, and to widely use them in practice [2].

Based on this objective necessity, we deemed it expedient to consider the state of profitability indicators and ways to increase them in part of small businesses and private entrepreneurship located in the city of Kashkadarya [3]. Because all activities are reflected in this indicator.Specifically, they encompass an increase in sales volume, the implementation of a savings regime in the entity, the fact that costs do not exceed the norm, and the need for efficient use of all assets.

Literature Review

The issues of increasing profitability in the hotel industry in the region have been studied by many foreign scientists, in particular, the scientific-theoretical, methodological, and practical problems of this problem have been studied by foreign scholars such as F. Kotler, J. Bowen, J. Meikens, D.S. Ushakov, V.G. Fedtsov, and others the study was conducted by [4].

Research on the problems of increasing profitability in the tourism sector of our country, as well as in the hotel industry, which is an integral part of it economists such as N. Tukhliev, I.S. Tukhliev, M.K. Pardayev, and A.N. Khalikulov are engaged in this field [5].

The scientific research of these economists reflects the organizational and economic mechanisms for the development of tourism and hospitality [6], their specific features in our country and regions, the problems of introducing innovations into the industry and increasing its efficiency.

In these studies, issues related to the activities of the hotel industry are considered as the infrastructure of tourism [7]. The issues of improving the quality and efficiency of services in the industry, methods of their evaluation and analysis, have been poorly studied as a separate object of research. This situation served as the basis for defining the goals and objectives of this dissertation [8].

Method

To justify the main characteristics of factors influencing investment efficiency in the hotel industry in the region.

Increasing its economic efficiency, the efficiency of the hotel industry, the total revenue per soum of investment, and the average revenue per guest [9].

Induction and deduction in the analysis of the influence of factors such as hotel bed occupancy, the total number of beds per employee, and the staffing of investments.

Systematic analysis, comparative analysis, tabular and graphical methods were used, and the development of proposals and recommendations is one of the pressing issues of today [10].

Result and Discussion

It is necessary to identify trends and patterns in profitability indicators in small businesses and private entrepreneurship [11]. For this purpose, we deemed it expedient to conduct a comparative analysis of the results achieved in 2023 of profitability indicators for 10 small businesses and private entrepreneurship entities located in the city of Karshi, Kashkadarya region.For this purpose, we would like to emphasize the feasibility of using the following table (Table 1) [12].

As can be seen from the data in this table, small businesses and private entrepreneurship of various sizes were taken for analysis [13]. KARSHI HOTEL AFROSIYOB LLC, which provides the largest revenue, has an annual revenue of 975.2 million soums for small businesses and private entrepreneurs, while "Kutamiz" LLC, which operates with the lowest turnover, has an annual revenue of 225.1 million soums. The difference between them is 4.3 times (975.2:225.1). This information serves as the basis for searching for internal opportunities to increase profitability in this system. To do this, it is necessary to determine a number of indicators [14].

Now let's focus on finding inner possibilities. The average profitability level in this system was 8.77 percent. Analysis shows that the profitability level in 5 small businesses and private entrepreneurship, which are part of the 10 studied small businesses and private entrepreneurship, is below average [15].

The study examined internal possibilities for improving labour productivity in the hotel industry through the evaluation and analysis of indicators reflecting labour productivity [16]. Our research has shown that several factors influence the change in this indicator. We deemed it advisable to consider a group of factors related to changes in ho tel efficiency, investments in hotels, the number of places in them, and changes in the number of employees employed in the industry.

It has been established that the following factors belong to this group: the effectiveness of investments in the hotel, the amount of investments per hotel, the availability of hotel guests, and the number of guests per employee. Methods for calculating the influence of these factors on changes in results have been developed for the first time [17].

Conclusion

The study also examined internal opportunities for increasing profitability in the hotel industry and ways to identify them. At the same time, the relationship between indicators of net profit sold products, and profitability in hotel enterprises was determined using economic and mathematical methods, and the identification of the relationship between them and the development of appropriate recommendations for its improvement on this basis, especially the ways to forecast this indicator, were shown.

Based on the direct dependence of increasing the efficiency of hotel enterprises in the region on personnel, their potential for making qualified decisions, requirements for each, opportunities to increase labour efficiency through self-mobilization of personnel, and ways to evaluate them and make effective management decisions are justified.

The research has proven that implementing the "All in One" concept is an important factor in increasing labour efficiency in tourism companies and hotels.

A person fluently mastered several languages at once: English, French, Japanese, Korean, Russian, Persian, Arabic, at least two or three of them, and possessed in-depth knowledge of our history, ancient monuments and national values.

As a result of the need to know the secrets of tourism or hotel service well, it has been shown that one person can work for two or three people, and this situation is very effective for modern small-sized hotels.

If the recommendations we developed are put into practice, ways to use the internal capabilities of increasing certain performance indicators in tourism and hospitality will be developed, and our scientific conclusions will lead to the improvement and enrichment of the content of the new generation of literature in this field.

References

1. F. Kotler, D. Bowen, and J. Makens, Marketing: Hospitality and Tourism, Trans. from English, Moscow: YUNITI, 1998.
2. D. Walker, Introduction to Hospitality: Textbook, Trans. from English, Moscow: YUNITI, 1999.
3. L. F. Khodorkov, World Hotel Industry, Moscow, 1991, and Y. F. Volkov, Hotel and Tourism Business, Rostov n/D: Feniks, 2009, p. 637.
4. Tourism and Hospitality Industry, edited by A. D. Chudnovsky, Moscow: Eksmo, 2000.
5. N. M. Kuldoshina, Economics and Finance of the Hotel Business, Moscow: MATGR, 2000.
6. A. Breimer, Basics of Management in the Hospitality Industry, Moscow, 1994, p. 345.
7. N. Tukhliev and T. Abdullayeva, Ecological Tourism: Essence, Trends, and Development Strategy, Tashkent: Uzbekistan National Encyclopedia, 2006, p. 415.
8. M. K. Pardayev et al., The Fundamentals of Ecotourism, Tashkent: Navruz Publishing House, 2015.
9. Kh. M. Mamatkulov, Organization of Services in Hotels and Tourist Complexes, Samarkand, 2012.
10. S. Tukhliev, G. Kh. Kudratov, and M. K. Pardayev, Tourism Planning, Tashkent: Teacher, 2010.
11. M. K. Pardayev, A. N. Kholikulov, and Kh. A. Rakhimov, Problems of Increasing Efficiency in Hotel Enterprises, Monograph, Tashkent: Economics Publishing House, 2013, p. 212.
12. T. Tashmurodov, International Tourism, Tashkent: Tashkent State University, 2001, p. 64; and G. Kh. Kudratov and I. S. Tukhliev, Economics of Tourism, Samarkand: SamISI, 2007, p. 71.
13. N. Tukhliev and A. Taksanov, Economics of Large-Scale Tourism, Tashkent: Uzbekistan National Encyclopedia Publishing House, 2001, p. 208.
14. M. T. Alimova, "Features and Trends in the Development of the Regional Tourism Market (Example of Samarkand Region)," Doctoral dissertation abstract, Tashkent, 2020, p. 95.
15. O. H. Hamidov, "Improving the Mechanism for Managing the Development of Ecological Tourism in Uzbekistan," Doctoral dissertation abstract, Tashkent, 2020, p. 68.
16. T. Abdukarimov, M. K. Pardayev, and B. I. Isroilov, Analysis of the Economic Potential of the Enterprise, Monograph, Tashkent: World of Economics and Law Publishing House, 2003, p. 256.
17. M. K. Pardayev, I. T. Abdukarimov, and B. I. Isroilov, Economic Analysis, Textbook, Tashkent, 2020, p. 488.