By MPhil, CdipAF, FBHA, FIH Cathy Burgess
A consumer pleasant and hands-on advent to finance and accounting within the hospitality undefined. an absolutely revised and up-to-date moment version of the bestselling advisor to MoneyMatters for Hospitality Managers, it's a must-have spouse for all managers and staff,
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Additional info for Essential financial techniques for hospitality managers
Profit ratios The final ratios in this section are to do with profits and you can calculate these for any type of customer as well as show them as a percentage. Profit per customer = Profit per staff member * = Net profit % = Net profit £ £p Number of Customers Net profit £ £p Number of Staff Net profit £ Sales % * You could also calculate sales per staff member, especially if they earn bonuses or commission on sales. Managing revenue As with occupancy, you can also split revenue into the market segments to give average spend for different types of customer and into trading periods.
The variance percentage for any item is the variance in money as a percentage of the budget. Tip Want to check if the percentages are correct? Add them up in the same way as you add the money amounts. 7 and so on all the way down to the net profit. This is called ‘cross casting’. So, who needs them? Answer – the stakeholders of the organisation who we discussed in Chapter 1 – management, staff, creditors, owners and so on. They all use ratios to 29 2: Understanding management reports compare one business to another, one unit to another, one month to another.
3: Managing revenue 7 Volume Let’s review the ratios that look at volumes first – often known as ‘occupancy’. These take the number of customers you achieve divided by the capacity. In hotels the capacity is rooms available, in restaurants it is seats available and in exhibition centres it’s space for stands. You can also use this for golf lessons, therapy sessions, car parking spaces and many more. Room occupancy % = Rooms sold % Rooms available Your customers may also be split into market segments – yes, you can split by segment and type although this is only worthwhile if your volumes are high enough.