Don’t just operate, ride the profit wave.
Times have never been tougher for hotels what with the cost of living crisis, war in Europe and shortage of labour created by Covid and Brexit. For these reasons hotel operators have had to pivot continually. One of the key pivots is the extent operators are now controlling costs and revenue to protect their profit, assuming they can rise above their monthly break even point.
Go Live. Get ahead of the curve.
For most hotels the process of monthly business performance evaluation takes place at the beginning of the following month, when all of the invoices have been received and summary costs and revenue are confirmed. The problem with this model is that any under performance in-month may not be identified until it’s too late whereby having day-to-day live monitoring will allow for more fluid responses and interventions where necessary.
To achieve live monitoring of profit involves blending 2 base live files. Entry to these files takes between 5 and 10 minutes a day. These files are networked to ensure
- A Live Revenue Pack which is tracked and updated by the revenue manager.
- An Expense Tracker which is completed by the FC and HOD’s daily (based on PO’s).
- We have ready built tracking systems to help you keep on track.
It’s critical that a live link is created between your FC and your Revenue Manager.
The Live Revenue Pack we provide maps the BOB for every month for a year ahead and continually extrapolates the current months forecast, where you’re going to land based on PACE of both bedrooms and on-property sales.
The live EBITDA tracker seamlessly maps all your nominal codes into core expense areas and works 24/7 against your revenue forecast.
F&B
S&M
A&G
Maintenance
Fixed Costs
Utilities
Food Cost of Sale (Including forecasted revenue and GP)
Beverage Cost of Sale (Including forecasted revenue and GP)
Sundries Cost of Sale
Forecasted Payroll (based on your internal rota system or our departmental payroll forecaster)
These elements work against the live revenue forecast linked live to your Rolling Revenue Report.
The graphic below sets out the live management of your profit generation and profit protection.
Get in touch today if you’d like to discuss profit protection. info@hotelgeneralmanagers.com
