Factors affecting Budget Planning

FACTORS AFFECTING BUDGET PLANNING

The following are the elements, which have an n, affects on the front office budget planning.

1.Accommodation: This is one of the most critical key factors operating in hotels. When all the rooms are sold, it is impossible to increase the volume of room sales except through an increase in room rates. When the sales budget is being prepared it is essential to examine patterns of occupancy to establish what level of room sales may realistically be expected during the forthcoming budget year. Where there is a high degree of room sales instability, evidenced by pronounced swings in occupancy rates, it is desirable to examine the possibility of shifting demand from peak to off-peak periods.

2.Shortage of labour: This particular key factor is potentially powerful, but there is no evidence that it exerts much influence on the volume of hotel and restaurant sales. In some locations, labour shortages may, in fact, be a severe limiting factor.

3.Consumer demand: Consumer demand is often found to be a potent key factor. Its operation may be due to several reasons.

The price level of the establishment may be too high, and this may result in a low ARR or low occupancy or both.

4.Quality of management: The management and its operation however do not have a bearing over short period. Over longer periods, the quality of management will have a direct and powerful influence on the volume of sales generated.

5.Other factors:

  • Political state of affairs
  • Natural calamities
  • Terrorist activities
  • Climate conditions
  • Events (sports, festival celebration, etc)
  • Importance of the city (climate, industries- IT, BPO, Biotechnology)
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Amit Kumar
Amit Kumarhttp:////hmhelp.in
Hii! Welcome to My digital home, I am Amit – an almost no-code generalist, helping businesses with their online presence using WordPress and other tools and simplifying some of their operations with ideas and automation. A psychology and philosophy geek by interest and a graduate in Hospitality Management. I founded hmhelp during college, which got me into WordPress. I am a highly motivated and results-oriented professional with a proven track record of success in the hospitality industry. I’m also a Digital Marketing Enthusiast with significant academic and practical experience managing digital content across multiple platforms. Skilled at SEO optimization, developing digital content for social media platforms, I offer extensive knowledge of multiple software programs, strong attention to detail, and extraordinary communication skills. If you are interested in talking about any of the topics I have mentioned on my website, you are in the right place. You can contact me or learn more about what I do. You can also connect with me on social networks.

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