International Journal of Economics and Financial Issues Using Financial Analysis Methods in the Hotel Sector for the Purposes of Planning and Monitoring Case Study Al Zaitonia Hotel (original) (raw)
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International Journal of Economics and Financial Issues, 2017
The study aimed at indicating the most important factors that control the takings and expenses of the hotel and classifying them according to their ability to influence the profitability of the hotel by using the appropriate analytical financial methods for the hotel activity which contribute in increasing the efficiency of planning and monitoring the hotel activity. The study indicated that the average spending power of the single guest and the numbers of guests are the basic factors that form the hotel's revenues, where the spending power of the single guest was the most powerful factor to influence the profitability of the hotel activity. Accommodation represents the most important factor in forming the spending power for the single guest and consequently influences profitability. The study also showed that the changing and fixed costs elements directly affect profitability and control the activity of the hotel sector and they, therefore, need planning, monitoring and followi...
This Erbil International Hotel plays on important in Iraq tourism industry. It offers many facilities and services for travelers and tourists from domestic and international market. Erbil International Hotel has ten storey and attractive building located in the heart of the city of Erbil (the capital city of Kurdistan Region). It is a private ownership hotel. The main revenues of Erbil International are room, food and beverage. Its main investment had in property, workforces, and equipment's. From the financial performance of Erbil International Hotel from 2005 to 2010, it indicates that total revenue of the Hotel was not enough to compensate the rising cost. Besides, the hotel has high fixed cost in the salaries and wages, cost of utilities and depreciations are the major items that have affected on costs and low profit margin. For five consecutive years from 2006 to 2010, the hotel has suffered a loss. This was due to the shortage of liquidity and low profit margin. The management failed to operate and managed the hotel efficiently based on the financial management, marketing issue and operations and management practices issues. Thus, this consultation project intends to provide Erbil International hotel with plans and strategies after carefully examine and analyze their financial performance problems by using financial ratio analysis, 4P's analysis, SWOT analysis, internal and external factors analysis summary, and TOWS matrix.
Hotel Revenue Management: From Theory to Practice
2014
This research monograph aims at developing an integrative framework of hotel revenue management. It elaborates the fundamental theoretical concepts in the field of hotel revenue management like the revenue management system, process, metrics, analysis, forecasting, segmentation and profiling, and ethical issues. Special attention is paid on the pricing and non-pricing revenue management tools used by hoteliers to maximise their revenues and gross operating profit. The monograph investigates the revenue management practices of accommodation establishments in Bulgaria and provides recommendations for their improvement. The book is suitable for undergraduate and graduate students in tourism, hospitality, hotel management, services studies programmes, and researchers interested in revenue/yield management. The book may also be used by hotel general managers, marketing managers, revenue managers and other practitioners looking for ways to improve their knowledge in the field.
Analysis of The Effect of Price Determination on Hotel Revenue (Hotel Case in Puncak, Bogor)
TRJ Tourism Research Journal, 2019
The purpose of this study is to find out the percentage of room occupancy and the room rates correlated with the benefits gained by the hotel in Puncak Bogor in the period of 2016-2018. This research includes the type of Descriptive and Explanatory Research of variables of prices, occupancies and incomes received by the hotel. It can be seen that the influence of price determination as measured by the room occupancy rates to the amount of hotel revenue is shown by the regression coefficient test, so, it can be stated that the occupancy rate or the number of visitors staying overnight has a very significant influence on the increase of hotel revenues.
Analysis of the Economy in Function of Cost Management in Hotel Enterprise
Permanent changes in the external market, strengthening of the competition, the impact of economic crisis and the like may prevent the successful realization of the process of reproduction in the company. In response to the challenges of the market, management should design certain internal strategies to preserve or improve the market position of the company. As the economic crisis with all its negative effects has already strongly affected financial and manufacturing sector, managers have the task to find the field to make changes within the company. As a business opportunity and a chance for survival in conditions of crisis, there is the cost management. Within this area, which many authors define as a focused action toward lowering costs and achieving greater business profits, measuring of the dynamic of economy can be successfully applied with the developed analytical instrument. Analysis of the economy, as the relationship between realized returns and resources expended, is ver...
The International Journal of Business & Management, 2019
Financial performance of hotels is as important and critical to the overall thriving of the firms in the industry. Failure to meet the required level of revenues by the hotels in terms of incomes earned, profitability and returns on investment may jeopardize the running of the hotel activities. This may lead to the collapse or closure of the hotels. The purpose of the study was to establish the effect of revenue enhancement measures on the financial performance of selected hotels in Eldoret Town, Kenya. The study looked at the effect of cost management measures, payment option measures, revenue automation measures and internal control measures on the financial performance of selected hotels. The study adopted transaction cost theory, the state theory of money, rational expectations theory of technology adoption and Control theory of performance management system. This study used a descriptive survey research design. The target population was 70 employees comprising of managers, accountants and cashiers from 10 selected hotels in Eldoret town. The study used a census survey. A pilot study was conducted to test for the validity and reliability of the research instruments. Content validity was used as a validity test while reliability was tested using Cronbach's alpha coefficient. Descriptive statistics including mean, percentages and frequencies were used while inferential statistics that are multiple regression model and product-moment correlation were used to make inferences of the population using data drawn from the population. The study results revealed that there was a significant relationship between cost management measures and financial performance of selected hotels (β=0.170, p≤0.05); there was a significant relationship between payment option measures and financial performance of selected hotels (β=0.263, p≤0.05); there was a significant relationship between revenue automation measures and financial performance of selected hotels (β=0.231, p≤0.05) and that there was a significant relationship between internal control measures and financial performance of selected hotels (β=0.213, p≤0.05). The study concluded that cost management measures, payment option measures, revenue automation measures, and internal control measures have a significant effect on the financial performance of selected hotels in Eldoret town. This study recommended that hotel managers should institute cost budgeting in their respective hotels. The hotels should develop more robust systems that minimize the risk of losing money. The study also recommended that the hotels' industry introduce an intuitive comparison system and that in order to provide appropriate access to information and systems and to prevent unauthorized access, safeguards based on business and legal requirements must be identified and applied.
المجلة الدولیة للتراث والسیاحة والضیافة
The purpose of this research is to investigate the factors affecting operational and financial performance indicators of the rooms division in Cairo's four-and five-star hotels. The results of this research show that there is a high variation coefficient for the performance indicators among the sample hotels; a t-test showed that the factors of hotel manager gender (in favor of female managers), hotel chain type (in favor of international chains), and hotel manager nationality (in favor of Egyptian managers) have an effect on the level of hotel performance; According to the results of the chi-squared test, the factors of hotel operator, hotel operator nationality, and hotel location have an effect on the level of hotel performance; and the indicator of total room revenues has a positive correlation with average daily rate (r = 0.591), revenue per available rooms (r = 0.599), total rooms sold (r = 0.717), and annual rooms (r = 0.727); in addition, there is a strong direct relationship between average daily rate and revenue per available room (r = 0.977) at the 0.01 level. Finally, the findings of this research are crucial for hotel managers to understand in order to increase the level of hotel performance, whether it is operational or financial.
Management Accounting in the Hotel Business
International Journal of Hospitality & Tourism Administration, 2007
ABSTRACT This article reports on a study investigating Management Accounting (MA) applications and practices in Greek hotels. Relevant bibliography indicates the way in which MA supports management decision-making: Costing systems aim to analyze revenue centers, and are structured according to marginal costing principals. MA makes extensive use of budget and performance measurement techniques to support operational and strategic decisions. In the present study, a sample survey was carried out by means of a structured questionnaire. The findings indicate that Greek hotels make use of MA techniques in all of the above ways, but also reveal a number of differences, such as the application of full costing methods. This in turn has implications for the criteria used to evaluate managers' performance, as well as for the information used in making pricing decisions. Moreover, budget design is more flexible than that used in other fields, while benchmarking is not so popular. The study's findings reveal that hotel size and sales mix structure affect some MA practices, while the use of specific MA methods and techniques determines the emphasis placed on the application of others.
This exploratory research paper investigates the revenue management practices of accommodation establishments in Turkey through a survey of the managers of 105 hotels. Specifically the paper looks at the revenue centres, revenue management tools, channel management, performance metrics, revenue management team, software and forecasting methods used by hoteliers. The findings indicate that respondent hoteliers put the emphasis on price discrimination and room availability guarantee and are less likely to apply overcontracting and overbooking. Most of the respondents do not have a revenue manager and do not intend to hire one: revenue management is usually within the responsibilities of the general manager, front office manager or the marketing manager. OTAs, hotel’s website, tour operators and travel agents are the most important distribution channels. The size of the property, its category, location and chain affiliation have significant impact on the degree of application of the various revenue management practice. In general, revenue management is mostly adopted by high category, chain affiliated, urban and seaside hotels with large number of rooms. Managerial implications, limitations and future research directions are discussed as well.