Budgeting & Expense Management

At its best, a budget is a financial modeling tool to set up expectations for the upcoming year; created properly, it is a built-in barometer of not only financial performance but also acts as a scorecard of your team on many variables.

At RevMax, we believe a budget is a financial projection of the opportunities, aspirations and operational efficiency of your properties as well as the capabilities of your management team. The budget should be the primary driver for the plan ahead, a tangible reflection of the vision and strategy.

THE ISSUE

Due to the pressures of time and resources, it is common to encounter one or more of the following situations related to budgets:

  • They may not be formally prepared
  • They may not have engaged all the stakeholders in the derivation
  • Formatting of the information may not be intuitive to the stakeholders
  • Accountability and performance tracking may not be part of a regular process.
  • Many stakeholders, such as department heads, may not be able to clearly recognize the connection between the budget figures and their operational procedures.

A well-prepared budget plus the full engagement of your General Manager, Sales team and Department Heads, are all essential components of a team aiming to achieve a pre-defined performance level.

RevMax Hospitality can help:

  • We’ll help develop, or modify, your current financial processes so there is clear accountability across departments with clear standards and expectations.
  • We’ll engage with your General Managers, sales teams, department heads and accounting department to set benchmarks of performance that are realistic and consistent with industry standards and your tailored to your specific situation.
  • We’ll develop a meaningful incentive plan with measurable and well defined performance metrics for each team member who can influence results you wish to achieve.
  • We’ll utilize tools designed to drive revenues at your hotel, developed for your hotel and your staff: these can be utilized to make realistic sales projections, provide timely feedback and suggest interventions towards the desired result.

 

PRACTICAL STRATEGIES TO MAXIMIZE PROFITS