Bounce Back from Your Incurring Losses. Give a Profitability Check!

Growth is critical to the success of any hotel; it drives forward innovation and leads to the improvements in guest experience that will help drive greater revenues. If a hotel business is not profitable, they have no chance of staying afloat long term, which can lead to a cycle of ever-decreasing profits. For this reason, hotel business owners need to use reporting tools such as Hotel Accounting Software that allow them to craft accurate reports, while letting them gain insight into what areas are generating the most revenue and where there may be opportunities for improvement.

How long do you think hoteliers would last before they gave up? Competition to stay ahead in the hotel industry is tough, and while most necessary steps are taken to maintain superiority and gain more business, it seems like it’s only a matter of time until a competitor cuts into the profits.

But there is always a way to keep your customers happy without risking your budget. You just need to know how important checking profitability reports for hotels has become — even if you’re one of the many professionals who already do this on a regular basis.

In short — How important is checking your hotel’s profit & loss?

Here’s what you need to know…

When it comes to hotel industry, no business is an island from its competitors. So with hotels being in competition with each other like never before, knowing how your properties are operating in your market is essential for a few reasons. For starters, it allows you to make decisions on how you will allocate resources.

It also helps you determine which parts of the business to focus on and which ones can be dropped or sold if needed. And yes, how do we know how many hotels are competing for your business? It may seem like a silly question but there are several ways to obtain this information.

The more hotels you have competing for customers in the marketplace, the more important monitoring profit margins becomes — especially when they’re cutting into your bottom line. It’s one of those moments when the phrase ‘Use it or lose it’ really applies. If you don’t use the information available to you, let’s say by not checking what’s going on in your hotel’s profitability, you may find yourself losing the battle.

But if you use it correctly by keeping track of income and expenses, you’ll be able to see where your profits are coming from. That way when someone does come along and slash into them, you already know what’s going on and can adjust accordingly.

By now it should be clear exactly how important it is to keep track of your hotel’s profitability so that you can act accordingly if a competitor comes along and wants to take advantage.

Hotel Accounting Software allows us to analyse how a hotel’s three different performance indicators (revenue, margin and expenses) are performing against the selected budgeted figures. The analysis can be run against the stats for an entire year or on any date chosen, as well as being able to look at more detailed data such as profit compared to expenses, margins, gross and net revenue etc.

The table below shows how an analysis using reporting in accounting software for hotels can help identify areas that are not performing well enough, and also highlight areas where there may be opportunities for improvement by reviewing historical data.

Using the information shown above, it is possible to compare revenue, margin and expenses against budgeted figures for the selected time period and for an entire year. The chart shows how the revenue and margin has increased when compared to expenses.

The profit of a hotel division can be analysed using reporting module in an accounting software for hotels; moreover, a report can be generated showing all performance indicators (revenue, margin and expenses).

Finally all performance indicators can be compared groundhog day as a percentage of total revenue.

Do you want to track your hotel’s financial performance? Accounting software for hotels will simplify your task. This type of software enables you to generate reports on a regular basis, so that you can monitor the state of your business and make any changes as needed.

A great accounting tool for hotels can make all the difference in managing your hotel’s financial condition and generating reports that help you track financial changes. You also want to keep an eye on how your business is performing, but if you have several different accounting tools in place, it may be hard to figure out how your business is doing. Tailored accounting software for hotels can help you manage all of the data generated by the different systems.

An all-in-one reporting solution gives you access to data that is usually kept separate throughout a hotel. This enables you to view information from multiple sources in one place and makes reporting easy. You also get the benefit of being able to generate reports that are relevant and customized based on your needs.

Comprehensive Hotel Accounting Software allows you to generate reports quickly and view information in a variety of formats. This can help you make sense of complex data and spot trends quickly. You may even be able to use some sort of reporting solution as a dashboard that lets you see at-a-glance financial performance.

With accounting software for hotels, you will have all the information you need right at your fingertips so that you can keep tabs on how your hotel is doing at any given time.

If your hotel is trying to meet government regulations and financial targets, track how you are doing with an accounting solution that allows you to easily generate reports that can help you meet these needs.

Out across the market, you’ll get to hear of generic traditional accounting software like QuickBooks, Zoho, FreshBooks etc. but did you realize ‘One Size Doesn’t Fit All’. So, lookout for a tailored hotel accounting solutions like Nimble Property and M3.

On the affordable size nimble is the best!

However, don’t just go with our words. Do your homework!