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The hotel industry is so vast that many hotels do not fit into single well defined category. Industry can be divided in various ways. Some of the international chains are Hyatt, Marriott, and Le Me...
The management committee takes care of the budgeting in the hotel. All the department heads are responsible for creating the budget for their respective departments and send it to the financial controller for final approval. Budgeting is one of the main planning activities within the hotels.
The budget provides an pportunity for taking a critical look on the cost incurred by the department, reviewing past planning and then taking appropriate steps to accomplish better outcomes in the next financial year.
The executive housekeeper has to be involved in the planning process that leads to formulation of the budget and has to ensure that the departmentâ€™s actual expenses are in line with budgeted cost and occupancy level.
Why is Budget Required?
The budgets act as a guide that provides the manager with the standards, by which they can measure the success of operation. A budget provides a financial framework within which all the department operates. The budget also act as a guide as to which things need repair or replacement it also help to determine what valuable pieces of equipment may be purchased and to pinpoint the areas which needs to be emphasized for the coming year.
It can be said that a budget is an instrument used by management for controlling and directing activities especially purchasing activities.
Budget may be of different kinds, based on type of expenses involved, the departments, and the flexibility of expenses.
2. Categorization by Department Involved: Based on departmental involved, budget may be categorized into: