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ACADÉMIE INTERNATIONALE DE MANAGEMENT EN HÔTELLERIE & TOURISME |
ENGLISH |
Professional Studies (PS)
Formation professionnelle
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Key Learning Outcomes:
- Formulate and implement marketing and profit making strategies for a hotel operation.
- Practice hotel decision-making and analysis through rapid feedback of operating results. Decision-making areas include Pricing, Rate Incentives, Advertising & Promotion, Staffing, Operations and Finance.
- Perform competitive analysis and identify opportunities in the market place to improve profitability.
- Understand the concept of GOP “Flow Through” and the impact on profitability.
- Understand and apply the concept of operating leverage to a hotel. Identify fixed, variable & controllable and uncontrollable costs in a hotel.
- Understand the difference between “static” versus “flexible” budgeting techniques. Prepare a break-even analysis and develop a “profit plan” for the simulated hotel.
- Understand the construction and interrelationship between the three financial statements, the Balance Sheet, Income Statement, and Statement of Cash Flows. Apply ratio analysis to hotel financial statements and discuss industry trend comparisons.
- Understand the performance measures of hotel operators and owners including vocabulary such as GOP, NOI, EBITDA, ROE, ROCE, ROA, ROI, Cost of Debt Capital, Cost of Equity Capital, Capitalization Rates, etc.
- Understand the concepts of financing and financial leverage and its impact on profitability, cash flow and return on owners’ investment.
- Understand how hotel operators/managers impact the value of the hotel. Apply basic hotel valuation techniques to evaluate what a hotel is worth.
Course Description
I - Marketing and Operational Performance
The Marketing issues will address:
Market Segmentation, Positioning, Source of Business Mix
& Room Type Mix
Utilization of the CHASE (Cornell Hotel Administration Simulation Exercise) allows the participants to improve their management decision making skill with respect to:
- Pricing and Incentives,
- Advertising
- Staffing
- Service Quality
- Room Amenities and Other Operating Decisions
Participants learn:
- How to evaluate financial statements.
- Keep those decisions balanced.
- React to competition and the marketplace and measure success.
Competitive analysis of the other hotels in the simulated marketplace helps to identify opportunities to improve profitability.
General topics such as Yield Management and Trends of Operations are also discussed.
II - Managerial Accounting Concepts and Measures
The Managerial Accounting section focuses primarily on issues above Gross Operating Profit (GOP). This includes the analysis and interpretation of financial information in order to make better-informed decisions.
This understanding includes reviewing concepts and tools such as:
- Cost/Volume/Profit Analysis
- Flexible Budgeting
- Operating Leverage
- Ratio Analysis
- Revenue Management
- Measurement of Conversion of Revenue into GOP
These concepts are applied to the CHASE and discussed as they apply to the “real world” environment. Emphasis is placed on the fact that accounting is not just numbers, but rather a powerful tool to better manage people, performance and profit.
III - Financial Measures of Performance
The Finance segment focuses primarily on issues below Gross Operating Profit (GOP). This includes a discussion of the impact of the owner’s decisions on the hotel’s performance including financial leverage. The analysis concentrates on the economic assessment from the owner’s perspective and presents a clearer understanding of owner’s measures of success and investment criteria including:
- Net Income
- Cash Flow
- Return on Equity (ROE)
- Return on Assets (ROA)
- Return on Capital Employed (ROCE)
- Growth
- Market Presence and Other Criteria
This presentation includes a discussion about the differences between Operating Leverage and Financial Leverage. A focus on both qualitative and quantitative methods is employed to ensure that the participants are able to improve on their weaknesses as well as sharpen their strengths.
