The main function of hospitality financial management, in general, is to ensure that a company’s monetary resources are properly managed.
Hospitality financial management is typically used to ensure that the monetary components of a business, such as a hotel or restaurant, are properly supervised and organized. This can include a number of concerns similar to other types of businesses, such as expenses and return on advertising or employee pay. There are also a number of issues that are a little more unique to money management in the hospitality industry, such as the need to oversee food expenses. Financial management may be overseen by a particular manager in a company, or it may be one of several issues handled by a single individual.
Hospitality financial management looks at routine costs, such as cleaning supplies, incurred at a hotel or resort.
The main function of hospitality financial management, in general, is to ensure that a company’s monetary resources are properly managed. This can be similar to the types of issues handled by other types of businesses. Many companies, regardless of the type of work they are involved in, have to balance their inbound revenue with the outbound expenses paid to employees and distributors of products used by that company. Operating expenses can also be a major concern in the financial oversight of hospitality, such as rent or taxes paid at a business’s physical location, which can be very high in some profitable locations.
There are also a number of issues that arise in hospitality financial management that are a little more unique to this specific industry. Companies such as hotels, bars and restaurants often need to consider the need for continual replenishment of fresh food to prepare customers’ dishes. While many businesses have to deal with restocking supplies and other goods, the naturally perishable nature of food can make this concern even more pronounced for hospitality businesses. These companies are often part of the tourism industry, which means that financial management of hospitality can also require balancing investments in local tourism programs. Marketing campaigns that attract new customers without alienating established ones can also be an important consideration.
Different companies may handle hospitality financial management in a variety of ways, although it is generally a major concern for restaurants and hotels. Many companies, especially large corporations and world-famous attractions, may have a single manager whose primary concern is the financial situation of the venue. This person can then be tasked with overseeing the company’s expenses, approving additional payments for services, and monitoring incoming customer revenue. Smaller organizations may employ a single manager to oversee the company’s hospitality operations and financial management. This could be the owner in small locations or a manager hired to help alleviate some of the owner’s responsibilities.