THE ABC MODEL: FROM COST MANAGEMENT TO SUSTAINABLE STRATEGY FOR A TRAVEL AGENCY

Kristina Spasić; Milena Marjanović; Jovan Kitanović

doi:10.52370/TISC26255KS

Kristina Spasić Аcademy of Applied Studies Southern Serbia, Leskovac, Serbia
Milena Marjanović Аcademy of Applied Studies Southern Serbia, Leskovac, Serbia
Jovan Kitanović Аcademy of Applied Studies Southern Serbia, Leskovac, Serbia

DOI: https://doi.org/10.52370/TISC26255KS

Keywords: Strategic Management Accounting, Activity-Based Costing (ABC model), Travel Agencies, Strategic Decision-Making, Competitiveness, Sustainable Business

Abstract

Understanding global tourism trends and integrating them into business strategies represents a key challenge for travel agencies, directly impacting their competitiveness. The contemporary tourism market demands precise resource management, yet traditional costing systems often fail to reflect process complexity, leading to price distortions and inefficient resource allocation. The aim of this paper is to examine the application of the ABC model as a tool that enables the transition from cost management to a sustainable strategy for a travel agency. Through a cost structure simulation using three destinations (Greece, Italy, and Spain), the paper analyzes the use of cost drivers for their accurate allocation. Results demonstrate that the ABC model reveals "hidden" costs, eliminates cross-subsidization, creating a reliable foundation for strategic decision-making. The findings indicate that implementing the ABC model contributes to cost transparency, more efficient resource management, and long-term profitability, supporting the sustainable business transformation of travel agencies.

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