When considering running a business such as a Travel agency or Hotel, what are thoughts about Budget, Accounting, Facility contracts and insurance, Destination Selection, and Risk Management.© BrainMass Inc. brainmass.com March 4, 2021, 9:49 pm ad1c9bdddf
Managing a hotel business involves understanding that cost can greatly affect the profits of a hotel. Cost control or budgeting must take into account the guests' demands before implementing any reduction of expenses that might lead to a problem of reduction of benefits that investment can give. Hotels need to offer first-class services; high-quality products and enjoyable and enticing promotion and marketing campaigns can greatly help boost profit for this kind of business. Since hotels need fixed costs in order to operate, it is essential that the relative control of the cost is realized by the full utilization of the hotel's managerial skills and abilities. One way is to reduce the consumption of fixed cost by managing existing assets effectively and improving on their usefulness. Hotels are "human-oriented" type of business. Therefore, it is very important that the human value is fully recognized, their potentialities developed, and they must be given good pay and benefits in order to perform their tasks very well.
The hotel business attaches more importance to accounting management than the regulation management of finance. When preparing a purchasing list, it is a requirement that the list is signed by general manager after the division/department manager and then the financial controller has to check and sign for approval. All of these signatories must be complete before the purchase can be done. Hotels financial department is concerned of strictly controlling the purchase prices of the food and goods aside from checking and calculating the purchases. The controller or the head of the accounting department needs to know how each department is doing and if it is losing or ...
The solution explains how a hotel business is managed in terms of Budget, Accounting, Faciity and risk management. References are included.