Fully Automated Package Plan Accounting
Fully Automated Package Plan Accounting
How to maximize revenues and accurately account for revenue spent in your outlets by guests on a package plan.
By: Tim Yellak
President, CSS Hotels Systems
June 2012
Fully Automated Package Plan Accounting
The practice of selling package plans has been utilized in the hospitality industry to increase occupancy and revenue. Accounting for a package however, creates complicated accounting issues. This paper will not only look at some of the different functions of package plans, but also the accounting issues created to accurately track and provide the services included in a package. To begin a package plan can be defined as “an offer or agreement involving a number of related items or one making acceptance of one item dependent on the acceptance of another”. In the case of a hotel or resort, the items would include the charge for the room, and other items or amenities. The variety of the items offered, and the different methods of posting those items create the accounting issues. Despite the issues, if sold properly packages can increase revenue and control guest traffic through-out your profit centers. The solutions offered in the following paper, are techniques currently created and implemented as standard operating procedures of the SumIT Software Systems.
Issues with the Rate
The first step to creating a package is defining a rate, a task that on the surface sounds simple enough, yet even that may be a bit more complicated than one would think. To begin, a package can be posted nightly or posted as on lump total for the entire stay. If you post a one-time charge, then the length of the package becomes of utmost importance. In both cases, do you want the tax to be posted inclusive of the package or as a separate line item? In order to create packages that have different unit types, you will have to be able to charge a different rate for each type. Different seasons require different rates or you
How to maximize revenues and accurately account for revenue spent in your outlets by guests on a package plan.
By: Tim Yellak
President, CSS Hotels Systems
June 2012
Fully Automated Package Plan Accounting
The practice of selling package plans has been utilized in the hospitality industry to increase occupancy and revenue. Accounting for a package however, creates complicated accounting issues. This paper will not only look at some of the different functions of package plans, but also the accounting issues created to accurately track and provide the services included in a package. To begin a package plan can be defined as “an offer or agreement involving a number of related items or one making acceptance of one item dependent on the acceptance of another”. In the case of a hotel or resort, the items would include the charge for the room, and other items or amenities. The variety of the items offered, and the different methods of posting those items create the accounting issues. Despite the issues, if sold properly packages can increase revenue and control guest traffic through-out your profit centers. The solutions offered in the following paper, are techniques currently created and implemented as standard operating procedures of the SumIT Software Systems.
Issues with the Rate
The first step to creating a package is defining a rate, a task that on the surface sounds simple enough, yet even that may be a bit more complicated than one would think. To begin, a package can be posted nightly or posted as on lump total for the entire stay. If you post a one-time charge, then the length of the package becomes of utmost importance. In both cases, do you want the tax to be posted inclusive of the package or as a separate line item? In order to create packages that have different unit types, you will have to be able to charge a different rate for each type. Different seasons require different rates or you