| Pune has become one of the top most business destinations. International investors consider Pune asone of the most rapidly developing two tier cities. Pune has seen incredible growth due to the 320% increase in the hotel industry. As a result, there is a cut-throat situation among the five star hotels. Consequently, the overall ARR and occupancy percentage of the five star hotels in the city has reduced and packages and heavy discounts have increased, which made budgeted travelling affordable. However, the business share of the budgeted hotels has reduced (as the share of business is being portioned among the many such hotels in the city). This is a challenging situation for the hotels. As they need to survive in the competitive scenario, the hotels must utilize or frame various strategies to gain constant profit margin. One such strategy is to monitor and reduce the operational cost. The present research aims to study the domestic budgeted hotels in Pune and their operational cost control strategies. The study has reveal that by controlling the operational cost the hotels can influence or raise their operational profit. The study, thus, proves beneficial to other such budgeted hoteliers who are finding it difficult to survive the present situation. |