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
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