2. Hotel Operating Profit Evaluation
Financial data from hundreds of hotels
Property based profile
Free to owners
Provides a STR report style report for expenses and profits
1 minute

3. What is a high profit hotel?
GOP 53.8% Labor 13.8%
GOP 50.1% Labor 14.7%
GOP 47.0% Labor 16.0%
1 minute

4. WHAT is Optimal Labor Cost
Labor Cost % Sales
Revenue
$276,792
Payroll Dollars
$49,150
Payroll Cost % Sales
(Payroll Dollars/Revenue)
17.76%
Occupancy
80.2%
Average Rate
91.57
Midscale
Labor Cost
Target
17% to
19%
1 minute

5. “Why” it’s worth the effort
SAMPLE
Keys 75
Occupancy
70.0%
Average Rate
$90.00
Revenue
$1,724,625
Net Income
15%
$258,694
Payroll Reduction
-1%
17,246
Benefits Impact
Raw Payroll
$396,664
PT&EB (Burden)
$74,176
Burden % Payroll
18.7%
Payroll Reduction w/Burden
$20,350
Payroll Reduction % increase NOI
7.9%
2 minutes

6. Have detailed, well thought out Performance Standards
Use automated, controlled Scheduling processes
Use a variety of metrics to maintain a high awareness of their Labor Cost
Create day Forecasts to spot problems in advance, and have time to make adjustments

7. Standards
Productivity Standard – How you decide (or should decide) how many employees you will need to service the guests on a day by day basis.
Driver – What determines the number of hours you will need for each position.
Format – When do you add hours for a job? Do you add them by shift? full time? part time? per room?
10 minutes
Factor – How many hours do you add?

8. Scheduling
Weekly Forecast – Start with ChoiceAdvantage Forecast Overview, estimate how much more you will pick up
Staffing Guideline – Combine the Day by Day Forecast and your standards to find out how many hours to schedule. Assign employees accordingly.
Daily Report – Check each day to see if your forecast is accurate, if you are maintaining schedule, do you need to adjust the rest of the week
10 minutes
Weekly recap – Did we achieve our goal, was our forecast right, do we need to change a standard or make other adjustments

9. 5 Minutes a Day 2
Awareness is Efficiency

10. 63% 20% Profit Profit Labor Cost / Revenue
Bottom Line... Will you make a profit?

11. Hours Worked/ Rooms Sold
Are you managing to business levels?

12. Revenue / Hours Worked
Do you need more rate?

13. Compared to others
Am I doing the job? Where can we improve?

14. Compared to others
Am I doing the job? Where can we improve?

15. Know each job
What determines my schedules?

16. What drives hours
What determines my schedules?

17. What drives hours
What determines my schedules?

18. What drives hours
It can’t be done.

19. What drives hours
Efficiency is Margin, Margin is Profit

20. What drives hours
How does a standard help me make more?

21. Forecasting
30 – 60 day Forecast – Start with ChoiceAdvantage Forecast Overview, estimate how much more you will pick up.
Staffing Guideline – Combine the Day by Day Forecast and your standards to find out how many hours to schedule.
Know your minimum payroll cost and when payroll increases.
3 Conditions –
Days not covering minimum payroll
High revenue days with low house turn
Days near the low end of a Staffing Level
10 minutes

22. 1

23. if you sign up for a demo today
How can CIA help?
Computer Ingenuity Associates, Inc.
Hotel Labor Optimization
if you sign up for a demo today
$400 per year license
Free Setup
Regularly $900