The hotel business is complex, multifaceted, and requires consideration of a wide variety of factors. It is typically divided into separate departments, each managed by its own responsibility center and maintaining its own income and expense records. To support their operations and generate documentation, it is recommended to use USALI departmental profit.
Concept and Creation Features
These departments represent a separate operational unit of the hotel, with a clearly defined structure, delineated rights and responsibilities, and the generation of its own reporting. The goal of creating such a structure is to achieve results that will be periodically repeated, factored into the overall hotel operations, and measured with utmost accuracy. These include revenue generated, controlled expenses, and overall profit.
This allows the profitability of a department to be determined on a monthly, quarterly, or annual basis, and the extent to which its operations are justified. Adjustments can be made based on the results obtained, and improvement measures can be identified.
The operating departments themselves are created where the company’s income is generated and where margins can be achieved. Departments of this type are created when several conditions are met:
- Independent revenue generation or controllable expenses are incurred.
- The department has its own staff or clear, separate technological processes.
- All direct expenses within the department are allocated consistently and regularly.
There is a result with clearly defined key performance indicators that can be taken into account in activity calculations.
Standard Departments
For hotels, typical operating departments are:
- Rooms. This is one of the main departments in the USALI system.
- Food and beverage purchasing and sales, and the structures that carry out these activities.
- If the hotel has other service departments that generate revenue, these typically include spas, parking, conference rooms, swimming pools, and the organization of various events.
Such departments are created to improve hotel management, creating a clear and understandable economic structure where all revenues and expenses are transparent and manageable. Finoko helps hotels with this issue by creating the necessary software and automating work in this area.
