In hospitality management, which type of expenses are typically variable and influenced by the establishment's operational choices?

In the context of hospitality management, controllable expenses are those costs that can be directly influenced by management decisions and operational strategies. These expenses often fluctuate based on the level of service provided, occupancy rates, and the establishment's operational choices. For example, a hotel may choose to adjust staffing levels or the amount spent on supplies based on current demand, which directly impacts the controllable expenses for that period.

Operations can also lead to changes in these expenses, such as increasing marketing efforts during a slow season to boost occupancy, which might lead to higher advertising costs temporarily. Since controllable expenses are closely tied to operational decisions, they provide management with the flexibility to optimize costs in response to changing conditions in the hospitality environment. This element of control is what makes them distinctive compared to fixed, direct, or indirect expenses, which generally do not fluctuate as readily with operational choices.