How Operational Efficiency Leads to Optimal Profitability

In the hotel industry, the deeper decision-makers can drill down into departmental figures, the easier it is to generate revenue, chisel away at unnecessary costs and post a healthy profit. Simply put, the best decisions are driven by in-depth analysis of departmental revenue and operational costs. Sound like too much work? Analyzing these critical figures and unlocking higher profits may be easier than you think.

Hospitality Financial Leadership – EFTEs, Productivity Measurements – Why Use Both – By David Lund

Most hotels measure payroll as a percentage of revenue or, as it is commonly referred to, labor cost percentage. This is not helpful. Why, you ask? Well, first of all, if sales magically increase because of an increase in the average room rate or average cover, your labor cost will automatically improve. Did anyone actually do anything better with the payroll?

The Challenges Faced by CFOs: How to Clearly Communicate When the Future Is Not Clear – By Anja Luthje

How can you forecast for meetings, business conferences, weddings and special holiday gatherings like those that take place at Christmas when you have no solid idea what restrictions the future holds? How can you accurately build your budget assumptions if you are not sure when regular business and leisure travel will resume to drive up occupancy rates?

What Are the Best KPIs for Measuring Hotel Profitability?

As COVID-19 continues its charge unabated, it’s natural for hoteliers to feel like they’re on loose financial footing. And as room revenue becomes less predictable, many hoteliers are seeing their revenue-only strategies give way beneath them. Want to build your plans around a more solid hotel performance indicator? Look no further than benchmarking hotel profitability.

Benchmarking 101: The Bottom Line on Utility Costs

Utilities can have a massive impact on a hotel’s profit. And even before the global pandemic tore through the hotel industry, those sneaky costs were growing rapidly. According to Energy Star, energy is the lodging industry’s single fastest-growing operating cost. This means that many hoteliers are unwittingly flushing a growing amount of cash down the drain.

Why Does It Take So Bloody Long to Do the Annual Hotel Budget? – By David Lund

Bloody is a great word. It’s English and I’m Canadian so that’s close enough and I’m adopting it for this piece. The word is so descriptive, and it immediately conjures up images of battle and of great suffering. Much the same as the annual carnage we refer to as budget season in the hotel business. It’s the epic contest between line managers and executives, hotel leadership teams and the brand and hotels and their owners.