How to control guest room costs

Hotel room costs can be divided into two categories: fixed costs and variable costs. Fixed costs refer to costs that do not change with the increase or decrease in sales volume within a certain range; variable costs refer to costs that change in the same proportion as sales volume increases or decreases. The sum of fixed costs and variable costs for a certain level of sales volume is the total cost. Generally speaking, there are three main methods of guest room cost control: budget control, main consumption indicator control and standard cost control. (1) Budget control: The guest room cost budget is the limit target for the guest room department’s operating expenses. Budget control is to control costs based on project-by-project and phase-by-phase budget indicator data. The specific method is: compare the total amount of various costs and individual items actually incurred in the current period with the corresponding budget data. When the business volume remains unchanged, the cost should not exceed the budget. Since the actual situation is sometimes inconsistent with the budget estimate, it is often necessary to prepare a flexible budget. Flexible budgeting mainly measures budget data at several different business volume levels, so that the actual amount of costs and the budget amount can be easily compared, rather than only comparing the budget data at a certain business volume level. (2) Control of main consumption indicators The main consumption indicators refer to indicators that have a decisive impact on the cost of hotel rooms. The control of main consumption indicators means to strictly control these key indicators. Only by controlling these indicators can we ensure the completion of the cost budget. The key to control lies in the establishment of quotas and rates for these indicators. For example: the establishment of consumption quotas for guest room guest supplies is a kind of control of major consumption indicators. The method of formulating the consumption quota of disposable guest supplies is to determine the daily demand based on the configuration of a single room, and then establish the annual consumption quota based on the predicted annual average occupancy rate. The calculation formula is: X = b × c × f × 365 Where: After the quota standard is determined, the supply should be based on the quota. If there are additional needs from the guests, they can be provided depending on the situation, but still try to control the actual consumption within the quota range. (3) Standard cost control Standard cost refers to the standard consumption of a certain business item under normal conditions. Standard cost control is to control actual costs based on the standard costs of each business item. For example, the formula for calculating the standard cost of guest rooms is: C= b × (1 - tr) - m/x. In the formula: C= standard cost of guest rooms; b= average room price; tr= business tax and additional tax rate; m= target profit; x= Cumulative number of guest rooms rented. Example: The number of guest rooms in a hotel is 168, the average room price is 400 yuan, the average occupancy rate is 60%, the target profit is 10.3 million yuan, the business tax and additional tax rate are 5.56%, then the standard cost of each room per day is: C = b × (1 - tr) - m/x　＝ 400 × (1 - 5.56%) - 10 300 000/168 × 60 % × 365　＝ 400 × 94.44 - 279.95　＝ 97.81 Yuan and above are the main methods of guest room cost control.