Budget 2010 - The need for effective Cost Benchmarking

As 2009 moves into its last quarter, and thoughts turn towards 2010 trading, you may well be asking yourself "Where are we going to pitch next year's budgeted revenues, and more importantly the profits?"

Forecasting revenues alone, with so many external influences, is going to be very challenging for 2010.

We can, however bring a quantifiable approach to profit forecasting through an understanding that profit is, of course a factor of sales, but also that each hotel will have an optimum profit conversion point - a "sweet spot" if you like.

But how does one find this "sweet spot", as it is individual not only to each hotel, but each department within each hotel? At Vision we believe that effective benchmarking can define this spot, and have developed a specific tool Vision Internal Benchmarking Engine or "VIBE" to help hotel managers shift their operations towards their "sweet spot".

It is a dynamic system, benchmarking all lines of the hotel's P&L against an appropriate internal competitor set that can deliver powerful results, this means that the general managers do not base their budgeted conversion on historical performance, but target those areas with a shift towards the optimum profit point. Critically, VIBE is flexible and fluid enough to be able to flex with varying revenues.

So don't just accept a budget based upon historical performance.

Let VIBE show you how you can demand more from your hotel by scientifically analysing the hotel's benchmark profit performance.

Click here for more information about VIBE.