HOTEL BUDGETING
Contents
Introduction
Budgeting
The Three Periods
Forecasting
Suggestions
Technological advances in the Hospitality Industry
Conclusion
References
Introduction
The Newtown Central Hotel runs a 100 bedroom three star city centre hotel part of a global chain. The present report purpose is to evaluate the implementation of a range of strategies in order to achieve profitable room sales, looking at the past 3 period’s figures and using group results from the first assignment (yield management game). Subsequently, highlight the areas of concern and consider possible strategies for improvement them.
To conclude, an identification of the modern technological developments in the hospitality industry has been made demonstrating how they can support on efficiency and profitability for the properties in the industry.
Budgeting
In order to improve the performance of the Newtown Central Hotel budgeting had to be taken as a serious consideration. It’s suggested to list all the hotels operating in the same area and that are providing to the same demographic. Observe and follow their performance. Take in consideration how long guests stay, the revenue per guest and per room, how many walk-ins they get, the cancellation and no-show rates, and any other relevant information available. Then, calculate and compare your hotel 's strengths and weaknesses of those competitors. Forecast the occupancy rates for the first year, based on the study of comparable hotels, adjusted for the strengths or weaknesses.
The Three Periods
The budget demonstrates that there is 2800 rooms per Period available but only 2660 were actually available in Period 2. The possible explanation of this is that, perhaps some rooms were being refurbished during Period 2.
The chart shows clearly that the numbers of Rooms Sold increases from Period 2 to Period 3. Unfortunately, the numbers of Rooms Sold dramatically decrease from Period 1 to Period 2. However, Period 3 has a higher
Introduction
Budgeting
The Three Periods
Forecasting
Suggestions
Technological advances in the Hospitality Industry
Conclusion
References
Introduction
The Newtown Central Hotel runs a 100 bedroom three star city centre hotel part of a global chain. The present report purpose is to evaluate the implementation of a range of strategies in order to achieve profitable room sales, looking at the past 3 period’s figures and using group results from the first assignment (yield management game). Subsequently, highlight the areas of concern and consider possible strategies for improvement them.
To conclude, an identification of the modern technological developments in the hospitality industry has been made demonstrating how they can support on efficiency and profitability for the properties in the industry.
Budgeting
In order to improve the performance of the Newtown Central Hotel budgeting had to be taken as a serious consideration. It’s suggested to list all the hotels operating in the same area and that are providing to the same demographic. Observe and follow their performance. Take in consideration how long guests stay, the revenue per guest and per room, how many walk-ins they get, the cancellation and no-show rates, and any other relevant information available. Then, calculate and compare your hotel 's strengths and weaknesses of those competitors. Forecast the occupancy rates for the first year, based on the study of comparable hotels, adjusted for the strengths or weaknesses.
The Three Periods
The budget demonstrates that there is 2800 rooms per Period available but only 2660 were actually available in Period 2. The possible explanation of this is that, perhaps some rooms were being refurbished during Period 2.
The chart shows clearly that the numbers of Rooms Sold increases from Period 2 to Period 3. Unfortunately, the numbers of Rooms Sold dramatically decrease from Period 1 to Period 2. However, Period 3 has a higher
References: Jagels, M.G (2007) Hospitality Management Accounting. 9th Edition. Hoboken, New Jersey. USA Bplans (2010) What is Market Forecast Guilding C. (2002) Financial Management for Hospitality Decision Makers. Butterworth-Heinemann, Oxford, UK Kotas R Dittmer P.R. (2002) Dimensions of the Hospitality industry 3th edition. John Wiley & Sons, New York, US Ball S., Jones P., Kirk D Rickbery, B. (2010) Caterer Search: Energy efficiency – how to save and prosper. http://www.caterersearch.com/Articles/2010/05/21/333612/energy-efficiency-how-to-save-and-prosper.htm. Mintel (2012) Factors Influencing Hotel Choice. Hotel Management (2012) The Hotel Brussels improves guest technology http://www.hotelmanagement.net/technology/the-hotel-brussels-improves-guest-technology-18160 Hotel Management (2012) Element hotels generate energy with stationary bikes http://www.hotelmanagement.net/element/element-hotels-generate-energy-with-stationary-bikes-18603