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

2. 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.)

3. 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.)

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

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

6. “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

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. Prices begin at $1500/property/year
Register at or

19. 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