Plan Predict Budget - Estimate or plan of expenditure in relation to income. Periodic (esp. annual)

Why don’t you do a budget? 1.) I just don’t have time 40 2.) I can’t predict the future 35 I’ve always done it this way 15 3.) Don’t know / Here every day 10 4.)

Why successful companies do budgets? 1.) Desire to make more money 50 2.) Build investor confidence 25 Early identification of problems 15 3.) Conversation about possibilities 10 4.)

Passenger or Driver? “A goal without a plan is a wish.” ― Antoine de Saint-Exupéry

Observer or Participant? “The best way to predict the future is to create it.” - Peter Drucker

“But I'd rather not predict. I'd rather affect.” Hunted or Hunter? “But I'd rather not predict. I'd rather affect.” - James Carville

How can I make what I want? Point of doing a budget How can I make what I want? How much will I make?

No matter what, we want to make more Economy will get better Brand will get stronger My competitors will get worse Something magic will happen Someone will come along and buy me out Hotel Impossible Guy Analyze my history and market place Determine what will change in the market Address the 5 biggest guest complaints Develop a more profitable revenue mix Put in cost controls “In this world you're either growing or you're dying so get in motion and grow.” ― Lou Holtz Field of Dreams Apollo 13

Two situations Economic upturn Economic downturn Demand increases Occupancy increases ADR increases New supply is built Occupancy expansion occurs Rate expansion occurs Economic downturn Demand decreases Travelers become more selective Rate wars begin Occupancy compression occurs Rate compression occurs

Budget Preparation Strategic Plan Room Revenue – by day / by segment Labor – based on performance standards Expenses – factor driven Based on history / similar properties Discussion focused on likelihood Likelihood of achievement

Business Plan Overview of Annual Goals Economic Overview Market Place Conditions SWOT Analysis of market Current STR Levels (Total Market) Changes in Demand Changes in Supply Projected STR Levels (Total Market) Your planned share of market

Business Plan Competitive Profiles Top Sources of Demand in the Market Market Segment Analysis Your Top Ten Sources of Business Market Rate Analysis Your Target Rates Action Plans

Room Revenue Track Day by Day segment history By Segment by Day What Groups are already on the books What special events are you already aware of What new demand will be entering the market What demand sources will decline next year What demand sources will increase next year Where will predatory gains come from How likely are you to achieve actions

Labor Tracks hours and cost directly from payroll systems Review Labor History to develop Budget Standards Determine basis of hours for each position Determine if seasonal or multiple driver standards are needed Should a percentage of hours budgeted at Contract or Overtime Rates Complete a wage and benefit survey

Expenses Set up based on the USALI 11th edition P&L Format Determine what drives each expense Rooms Sold, % Revenue, Flat Cost, Combination Use factor driven forecast and budgeting, allowing costs to self adjust as drivers change Pay attention to trends Have detailed plans of how you will improve cost If you are not achieving plan, KNOW WHY

Budgeting made easy Budgets are done to decide HOW we can do better Budget is achieved by having a detailed PLAN (Specific Ideas) Automation can ONLY be used to speed up process Be PREDATORY to survive

Is Forecasting different? Closer in Based heavily on what is reserved Determines staffing and spending Set Availability by Channel and Rate Ensures proper guest experience Shows market awareness

Prices begin at $1500/property/year Register at www.ciasoft.com or email sales@ciasoft.com

Interface to your other systems Provide a defined process What does CIA do? Interface to your other systems Provide a defined process Provide Rooms by Day, Full Chart of Accounts, Labor Standards, Business Plan, Reporting, Analysis and Trends Review consultation