The month to date results are very favorable to the room department considering a 25.3% profit increase compare to the last year. The forecast is very good showing a further 2.6%icrease in the incoming forecast. However the forecast does not trend well with the budget needing intervention in areas such as payroll expenses. The department is facing challenges in increasing costs on both payroll and total room expenses due to damage repair cost and having more than enough personnel in the department. The revenue manager can should suggest lay off of workers whose occupancies can be performed if merged and room amenities to be well taken care of to reduce repair and general (Total) room costs.
Food and beverage department.
Incurring loses at this department, the forecast is not favorable to the moth date results. The department is facing challenges in utility of funds more than the forecasted or appropriately allocated funds in purchase of food and beverages. The problem of having more than enough personnel in the department is also an added challenge. At an increased percentage loss of actual to last year, 89.7%, the revenue managers move of laying off work occupancies that can be merged reduces the payroll expenses. The manager can suggest critical management of food to avoid wastage and increased expenses and the food and beverage department should try as much as possible to utilize well the fund resources allocated to them and give viable reasons whenever they deem it relevant to increase these funds exceeding the monthly budget (HAYES D. K. & MILLER, A. 2011)
Generally the gross profit is at an increasing rate compare to the last year and the costs have also reduced compared to the last year but the actual costs are lesser that the forecasted costs which need to be reduced and action as recommended on the F&B and rooms department, by a revenue manager, should be taken to enable appositive move in reducing operational costs (OZ 2009, Pg. 315)
The expenses on the forecasted on the room departments are seen to increase compared to the actual expenses. They show an increase of 2.4% on payroll expenses and 2.7% on total expense compared to actual expenses. The revenue forecasted reduces at 0.9% the actual revenue due to increasing costs reducing the ADR and RevPAR at 2.2% and 0.5% respectively. The F&B department forecast expenses also show an increase in the moth to date results. The payroll expenses are forecasted to increase with 3.2% and the total expenses with 2% compared to actual expenses. The revenue also reduces at 1.4% the actual revenue due to increasing costs.
In room department, the actual expenses exceed the allocated funds on the budget. The variables unaccounted for in the room departments increase the costs and less careful protection of the assets also contribute to the same. The budget revenue is exceed at 12.6% by actual revenue and 2.4% and 12.6% on ADR and RevPAR. The expenses in the F&B department however are in line with allocated fund on the budget. The actual revenue exceeds budget revenue at 1.9%
Last year variance
There has been a general increase in actual revenue and expenses in both Room and F&B department compared to the last year. 20.3% increase in room revenue, 12.9 in ADR, 20.3 % in RevPAR, 2.5 % in payroll and 10.5% total expense percent increase show a positive move in the room department and the 36.2 % in F&B revenue, 4.8% payroll and 12.7 % also show improvement. Department profits have increasing room and F&B department significantly.
OZ, E. (2009). Management information systems. Boston, Mass, Thomson/Course Technology.
HAYES, D. K., & MILLER, A. (2011). Revenue management for the hospitality industry. Hoboken, N.J., Wiley.
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