Comments for Financial Skills Academy https://profitsmasterclassblog.com Ultimate Learning Hub Sat, 19 Oct 2024 18:48:25 +0000 hourly 1 https://wordpress.org/?v=6.9.4 Comment on Ultimate Hotel Finance Training Cookbook by Oomesh H https://profitsmasterclassblog.com/ultimate-hotel-finance-training-cookbook/#comments/176 Fri, 24 Feb 2023 10:53:56 +0000 https://profitsmasterclassblog.com/?p=11782#comment-176 Hi Mr Soundararajan,
Thanks for this very important and interesting set up of an Ultimate Hotel Finance Training Cookbook.
When I read your above summary, I can sense your passion for hospitality finance. That’s me and my passion too.
I would certainly like to join you to learn more and benefit from your knowledge and training on the Cookbook.
We are already connected via linkedin, you may send me the details for the subscription.

Best Regard
Oomesh

]]> Comment on assignment_2517_160300035932_assessment.docx by Lakshmi Narasimhan Soundararajan https://profitsmasterclassblog.com/?p=3602/#comments/139 Sat, 24 Oct 2020 19:32:13 +0000 https://profitsmasterclassblog.com/assignment/assignment_2517_160300035932_assessment-docx/#comment-139 SELF ANALYSIS ASSIGNMENT 1
Your selection of the Top 5 KPIs should be ones which at a glance tell you what went right and what went wrong in the Current Month. Moreover, these 5 KPIs should be ones which are within your sphere of control. Let me explain.

Your Top 5 selection began with GOR for the current month which is great. You had GOP, Labor Cost and Rooms Profit which are okay too. However, they do not build on your GOR Top Choice. I will clarify.

Ideally, your Top 5 should be (for the Current Month): GOR, Room Revenue, Room Profit, GOP, Labor Cost.
Why this order? Well, simply because after GOR, looking at Rooms Revenue will give you an idea how much it contributed to the GOR. Then Rooms Profit will give you an idea about the profitability which you can then check with the GOP. Considering that Rooms Revenue and Profit will mostly account for more than 70% of total GOR/GOP, it allows you to focus on KPIs which produced results during the month.

I would suggest not bothering with Net Income simply because after GOP there are Fixed Charges and other items which are really out of your control.

Get into the habit of focusing on the Current Month almost all the time and only looking at YTD for checking position based on number of months passed. I will be explaining this more specifically in the Part 2 and 3 of the course.

In my opinion, budgets are history (and almost obsolete) as soon they are approved!!!! It is better to look at whether you have achieved GROWTH compared to Last Year Current Month or what is known as YOY. I will talk about this a lot in modules going forward.

SELF ANALYSIS ASSIGNMENT 2
I broadly agree with what you said about seasonality affecting occupancy, ADR and GOR. But that was not my question.
My question was 3 points relating to seasonality that you see in your PNL.
The response is that the PNL actually does NOT show any seasonality in it overtly. Of course, you can look at a lean or peak occupancy month and determine scale of operation based on that.
However, no hotel PNL actually on a systematic basis tabulates lean or peak month performances in terms of KPIs for use in analysis.
In later modules (particularly the ones in Part 3 on Decision Making) I will be talking about how to systematically grade seasonality for decision making.
Finally, Have you considered that you may be in a lean month but the next month may be a peak one and the other way round. Decision making becomes completely different in such scenarios.

]]>