Traditional Culture Encyclopedia - Hotel accommodation - Should hotels focus on controlling costs or increasing fees to increase profits?

Should hotels focus on controlling costs or increasing fees to increase profits?

Profit is the balance of enterprise income after deducting various expenses. It embodies the economic benefits of hotel management. A correct understanding of various factors affecting hotel profits, and a clear understanding of their mutual relations and the degree of their influence on profits are important conditions for controlling hotel income, cost, price and profit, adjusting hotel profits and profit structure with short-term or long-term decisions, and improving economic benefits. The influencing factors of modern hotel profits mainly come from two aspects: first, the market; The second is the cost. Specifically, it includes the following contents:

(A) factors affecting market profits

The market is the hope of enterprises, and it is the only source for enterprises to obtain sales revenue and generate profits. The relationship between supply and demand, passenger flow, source structure, guest level, consumption level and ability to pay in hotel market are all important conditions that affect profits. But these conditions are unique to the hotel and form measurable factors, mainly including:

1. Room occupancy rate. Room occupancy rate is not only the final embodiment of the market environment and the relationship between supply and demand, but also an important factor affecting hotel profits. Obviously, other things being equal, the higher the occupancy rate, the higher the hotel sales revenue and profit, and vice versa.

2. Average house price. The average house price refers to the average income of various types of rooms rented according to the quotation every day during the planning period. It is also an important factor affecting hotel profits: the average house price is affected by many factors. But other things being equal, the higher the average house price, the higher the hotel income and profit, and vice versa.

3. Number of receptions. The reception number can be expressed as the number of rooms, catering business, entertainment facilities or the total number. In a certain period of time, under certain operating conditions, the more reception times of hotel services, the higher its sales revenue and profits, and vice versa.

4. Per capita price or charging standard. The per capita price or charging standard is determined according to the relationship between supply and demand in the hotel market, as well as the enterprise price policy and price level. In the catering business, it is represented by per capita consumption, and in the room business, it is represented by per capita/day rental income. In the entertainment business, the performance is per capita charge or income. In a certain period or under certain operating conditions, the higher the per capita price or charging standard, the higher the realized profit.

(B) Cost and profit factors

Cost is the monetary expression of various reasonable consumption values produced by producing or selling a certain product or service. Costs can be divided into fixed costs and variable costs. However, in order to analyze the influence of cost on profit, we can divide the influencing factors of cost and profit into five categories.

1. Raw material cost. It belongs to the category of variable cost, which changes with the change of product, output or sales.

2. Energy consumption. Energy consumption includes water, electricity and fuel power consumption. They are the necessary expenses for the business operation of hotel rooms, restaurants, entertainment and other departments, and belong to the category of variable costs.

3. Personnel costs. Personnel cost reflects the value of enterprise labor force. Generally, it is determined by the enterprise in advance according to the national policies and regulations on personnel and labor management and the hotel labor distribution system. Therefore, it also belongs to the category of hotel fixed costs.

4. Non-employee costs and bonuses. The supernumerary expenses refer to the personnel expenses of temporary workers, seasonal workers, interns and hourly workers in hotels. Bonus is the staff cost of the hotel budget that changes with the realization of profit. Both of them belong to the category of variable cost.

5. Fixed costs. Those costs that do not change with the change of enterprise products or sales in a certain period and under certain operating conditions. Can be divided into two categories: first, commitment to fixed costs, mainly capital expenditures, such as repayment of capital, interest, house furniture, machine depreciation, property tax, land resource tax (tax charged in expenses) and so on. Second, discretionary fixed costs, such as management expenses, sales expenses, maintenance expenses, overhaul expenses, etc. , are formulated according to the business needs of enterprises.

(C) the impact of two types of factors on profits

Both market factors and cost factors have an important impact on hotel profits. But as far as its influence is concerned, the market factor is completely different from the cost factor. The influence of the former on profits belongs to multiple relationships. For example, if the room occupancy rate and average house price increase by 65,438+00%, the profit may increase by 30%, 80% or even exceed 65,438+000%. The latter's influence on profits belongs to the reciprocal relationship. That is, under certain operating conditions, how much cost is reduced will increase how much profit. It is very important to understand the influence of these two factors on profits, which can help hotel managers to better control various factors affecting profits.