While the business income is controlled, cost has direct impact on the profits of the hotel. It is an important link in the modern hotel management, as well as one of the questions that can't be ignored for the financial management. In the fierce market competition, we must change the idea of cost control and work on the cost control solidly and conscientiously if we want to reduce costs constantly, increase economic benefits and strengthen competitive advantage. 

First of all, the prerequisite of cost control is to meet the guest's demands. Cost control is not the kind that reduces the expenses without any reasons, reduces some expenses if it is possible and totally ignores the problem of benefit that investment can produce.

Secondly, cost control is relative. Cost control is not only to reduce and inhibit the cost directly, but also realize the relative control of the cost by fully utilizing the managerial ability. As we know, the fixed cost of hotel does not mean the determination of the shared cost volume of the unit product (turnover). Utility of the management ability and the degree of management level can change output or turnover of a certain scaled enterprise, thus change the fixed cost volume of the unit product (turnover) accordingly. It is realistic especially for the hotels with greater fixed cost, widely utilization of property and equipment and heavy turnover volume of funds. For this reason, the foremost thing we need to do is to offer the high-quality products, first-class services, the enjoyable and effective market campaigns to attract more customers, thus reduce the level of the fixed cost with the high income. Secondly, deploy and manage existing assets scientifically and effectively, improve use result and service life of assets, to achieve the goal of reducing the fixed cost consumption. For example, 7+1 executive bars on the 7th stories of the hotel bring the efficiency of the hotel into full play in the limited time and space. It can not only meet customer's demands greatly, but also reduce cost allocation with the rich income, thus help the full utilization and concentrated maintenance of facilities.

In addition, we must establish the "human-oriented" idea of cost control. Human is the foundation and soil of management and operation. The subject of cost control and implementation is the staff of the hotel. It needs active participation of all staff besides accountants and cost controllers. "Human-oriented" management idea refers to fully recognize the human value, find out human's potentiality, stimulate human's vigor, improve human's characters effectively and make it achieve the optimum combination and give full play to enthusiasm. Workers for the hotel are very familiar with hotel business procedure, service rules and all material consumption and expenses situation in hotel operation, and has every way to control cost. Moreover, the participation of staff makes everything under control and check. Disparity can be found out and regulation can be made at any time. As a result, the effectiveness of cost control has greatly been raised. Give full play to the staff's potentiality, and stimulate the consciousness of staff to control cost well.

In a word, the traditional hotel financial management generally attaches more importance to the accounting management while ignores the regulation management of finance. For example, what some financial managers or financial controllers are often signed and approved by the general manager is handled with all strength whether it is correct or not. Not all the decisions are correct because of the limited ability of human. It is required to ask relevant departments to advise and provide evidences for leaders to make decisions. Therefore, a purchasing list must be signed finally by general manager after department manager and financial controller check and sign. None of them can be missed. Otherwise, fault may take place while making decisions. The financial affairs of hotels attach more importance to financial control than accounting merely. Purchase prices of food and goods should be controlled strictly and the regular market survey should be made by financial controller. It is not allowed to purchase at will without the approval of financial controller. The hotel financial affairs are not merely the work of checking and calculating after "what is done cannot be undone".

Financial department is not the executive body but a management body of the function. So financial management needs to be given re-thinking and positioning. In the development and operation, a set of complete, rigorous and reasonable system has been formed for guidance after repeated breaking-in and operations. We must study conscientiously and learn the knowledge about financial management and management methods from advanced hotels to improve our management system and level.

The hotel management is a new-developed discipline and more like a kind of art of management. Many kinds of qualities are required for management, including knowledge, skill, personnel management and probation, the glamour of the manager his or herself, etc. It is especially emphasized to fully improve the working status of financial controllers, managers and accountants, which has already aroused the attentions concerned in China. For a long time, the financial managers of the Chinese hotel industry have different levels of quality because of historical reasons and actualities. It is a little difficult for them to accept some advanced financial management methods for the moment. To solve this problem, it is required to proceed with the existing financial managers, strengthen their study and training, especially of professional and relevant knowledge, make a replacement of the persons which are not adaptable to the posts, perfect the mechanism of talent flow as soon as possible, bring the real talent into play, and create conditions for the internationalization and standardization of financial management of the domestic hotels gradually. For example: The related departments have already begun to study and carry out the qualification cognizance of managers of the hotels. Some higher learning institutions have started the professional training in this respect. But there is still a long way to go and much work to do if we solve the above problem fundamentally. In view of actuality of hotel industry in China, the Chinese hotels have different ownership forms such as state-owned, private-owned and others, etc. The targets received are different in the different business levels. So the financial management methods adopted differ widely. The financial management level is different too. Therefore, the advanced experience and methods of financial management from overseas hotels should be combined with the actual situation of Chinese enterprises. It is a very important and urgent task we face to adopt the hotel financial management methods which are merged with the standardization in the world under Chinese actual situations.

With the acceleration of the integration process of global economy, Chinese economy is further complied with the world. The internationalization and standardization level of financial management of hotel will also been improved. However, there is still a great gap between overseas and domestic hotels. To narrow the gap, we must make every effort and urge the counterpart of the domestic hotels to establish confidence, at the same time seek for the differentiation to further strengthen the management and uplift the level of internationalization and standardization level of hotel financial management.