1. Budgeting for Operations
Coordination from Accounts Division
Annual Operation Budget Plan
Management Evaluation
Review by GM & FC
Overall Budget Report
Approval by Hotel’s Owners

2. Budgeting for Operations
Front office managers does this a long term planning
The hotel’s annual operations budget is a profit plan that addresses all revenue sources and expense items
Annual plans are divided into monthly plans, that in turn, are divided into weekly and sometimes into daily as well
These budget plans become standards against which the management evaluates the actual result of operations

3. Budgeting for Operations
In most hotels revenue and profit from room division is usually greater than other divisions
Hence, accurate room division budget is vital to creating the hotel’s overall budget
All management personnel must closely coordinate in the budget planning process
Statistical information essential to the budget preparation process is the responsibility of accounting division

4. Budgeting for Operations
Accounting division is also responsible for coordinating the budget plans of individual department managers into a comprehensive property-wide operations budget for top management’s review
Then the GM and Controller review departmental budget plans and prepare an overall hotel budget report for approval by the hotel’s owners
Incase of unsatisfactory budget, it is returned to the appropriate division managers for review and revision

5. Budgeting for Operations
FOM ‘s primary responsibility in budgeting are:
Room revenue forecast (input from reservation manager),
Estimating related expenses (input from all department managers in the room division)

6. Estimating Expenses Typically rooms division expenses are:
Payroll and related expenses
Laundry, linen and terry and guest supplies
Commissions and reservation expenses
Other expenses