According to the HVS presentation at the Lodging Conference, hotel net income, as a percentage of revenue, peaked in 2015 and has declined for 3 years in a row. The dilemma for hotel management companies is how to carry more top line revenues through to bottom line profits.
Every hotelier understands the cost of doing nothing when it comes to maintaining hotel condition and brand standards. If you don’t reinvest, do the PIP, etc., your hotels will, over time, lose market share to competitors who are reinvesting in modern designs and technology. Hoteliers need to apply the same focus on their back-of-house business systems, especially accounting. Here are 7 questions to ask yourself when deciding on an accounting upgrade:
Accounting should be able to provide a hotel owner reliable insight into the operations and financial well-being of their business. Insightful reports must be available without delay all the time to all key personnel without the owner or others waiting for their accountant to get around to creating the reports. To operate your hospitality business efficiently, here are some more features available in a good accounting program:
In my 20 years of experience in the hospitality industry, I have seen thousands of hotel profit and loss statements. Over these years many successful hotel owners have grown their portfolio from 1 or 2 hotels, to 10, 20, or 100 hotels. One challenge of this growth is that certain systems and ways of operating one or two hotels become dysfunctional or obsolete. Almost all hotels have had their front office software updated in the last 5 years, so why would you still operate with the same old accounting program, PC or even web-based, that have not kept up with the fast paced advances of the latest technology?
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