International Aspect of Hospitality - Financial management level 1a

7 important questions on International Aspect of Hospitality - Financial management level 1a

Rooms department sales mix?

What portion of total revenue comes from room sales

Sales mix per department shows?

The total revenue per department

What does it mean when you say rooms are perishable?

It means that of you don't sell the rooms tonight you won't generate revenue tomorrow
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What are the three types of ratios?

Activity ratios, profitability ratio's and operating ratio's

What does an activity ratio measure?

How efficiently a business uses it assets (building, rooms), if the ratio is low it indicates that the hotel is using it assets more efficiently what means you make more revenue

What does a profitability ratio measure?

How profitable a business is for his owner, the higher the ratio the more profit the hotel is making relative to revenue

What does an operating ration measure?

Measure day-to-day operational performance

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