Cathy Burgess

Revenue management - the contribution of the finance function to profitability.

Literature in the area of revenue (or yield) management concentrates largely on the operational issues of maximising revenues. The issues of profitability have been considered in recent years but practical attempts to implement an approach which recognises the profitability of different market segments have been problematic. This article considers the literature in the area of profitability and revenue management and then addresses the issues regarding its implementation. The need for accurate financial information is crucial and the provision of this relies on sophisticated systems which will analyse and predict appropriate data. Developments in technology are progressing rapidly and will provide the opportunity to expand the use of information for managers. Given the involvement of the finance function in the design and use of information systems their contribution to this development is now emerging as crucial to this process and the resultant increase in hotel profitability.

International hotel groups: what makes them successful

Hotel groups have expanded extensively over recent years, with key players now operating on a global basis. Presents a critical evaluation of the literature relating to the internationalization of hotel groups and previous success studies and prescriptive strategic management models in relation to multinational hotel groups. Addresses issues which include the measurement of internationalization, overreliance of profitability as a single measure of success and the dominance of western business cultures. Forwards proposals for a research framework designed specifically to investigate success in international hotel groups and to emphasize the need for “holistic” approach. Recognizes the need to research success using a multidisciplinary framework.

Do hotel managers have sufficient financial skills to help them manage their areas

Purpose – The purpose of this article is to investigate whether managers in hotels have sufficient financial skills to help them effectively manage their areas, within the context of a changing industry.Design/methodology/approach – Additional findings from a series of recent research projects amongst hospitality financial controllers have been utilised to give an alternative viewpoint to those found from literature.Findings – A review of literature identified a strong need for managers to have financial skills, but there is little recent evidence as to whether they actually hold these skills. Hotels are changing fast with pressure to maintain profits resulting in new approaches to management, but there is concern that the development of systems has meant an over‐reliance on these to control costs. Financial controllers consider that departmental and general managers do not have enough business skills – and finance skills in particular – to optimise costs and revenues and hence maintain profits.Research l...

Gender and salaries in hotel financial management: it’s still a man’s world

Research into the careers and salaries of financial controllers in the hospitality industry has shown continuing discrepancies between men and women. Analysis of the results of a survey indicates that the assumption that differentials are based purely on gender are somewhat simplistic and that it is in the nature of the work that men and women perform that the real reasons emerge. Women and men appear in general to undertake different types of job within hospitality financial management, those with higher status and hence pay being more likely to be held by men. Occupational segregation and educational level emerge as being major factors although ongoing social attitudes towards women’s employment have limited their progress. It is essential for these attitudes to change if the hospitality industry is to optimise the use of all skilled and trained financial managers to the benefit of the business.

The hotel financial manager – challenges for the future

Recent reports focussing on the future of the global hospitality industry have identified that the key issues for management include the impact of new technology, a lack of availability of capital investment and increasing concern for the future of the environment. The hotel financial manager has emerged as being of major importance in maintaining the profitability of the unit and the company and plays an increasingly influential role as part of the management team. They must now identify the challenges for the future within their own working environment and develop the technological and personal skills necessary to manage in this new age.

Are hotel managers becoming more professional: the case of hotel financial controllers?

Purpose – This paper aims to explore the following question: does the industry context influence management attitudes towards being a professional?Design/methodology/approach – Previous research has identified traits that define a professional. Using this framework, the features of a profession are explored from the perspective of hotel financial controllers. Primary research is used to further explore attitudes towards the achievement of these traits.Findings – The characteristics of this particular industry do appear to impact on attitudes towards professionalism, from the perspective of organizations and the professional association, in comparison to more traditional professions. Although the industry desires to become more professional, there is unwillingness to promote career development and other approaches for hotel controllers. Individuals, however, wish to meet the desired traits and hence improve their personal status and careers.Research limitations/implications – This research has examined onl...

The Education and Training Needs of the Hotel Financial Controller

The hotel controller′s role has changed substantially over recent years, largely as a result of the economic recession, for which new skills and knowledge are required. Focuses on the lack of education and training for those currently in employment within the industry: current industry attitudes (as an effect of the recession) towards education; and training emphasizing expenditure on statutory items rather than on management development. Identifies a gulf between controllers and their head office superiors. Controllers indicated that their stated needs for training and education were not being met, whereas their superiors considered that the onus was on the controllers to be proactive in their own self‐development.

Hotel accounts - do men get the best jobs?

Abstract Salary levels of women in hospitality financial management appear to be lower than those of men with similar job titles. However, further analysis of a limited sample suggests that salary levels are generally dependent on the level of work and place of employment – and that men tend to be employed in the jobs with higher responsibilities and hence status. There has been some progression by women into the higher status, higher-paying jobs but certain barriers still appears to exist which affect the rate of change.

Multiple stakeholders and middle managers: the role of the hotel financial controller

This article explores the key characteristics of the specific stakeholders for one type of middle manager, the hotel financial controller. Eleven semi-structured interviews among financial personnel showed that although some owners require on-going profits and have high expectations of middle managers, others may take a more long-term view and be less demanding. Head offices provide systems and services for the unit, but a lack of efficiency and strategic planning affects the ability of managers to do their job. The middle manager must take a proactive intrapreneurial approach in communicating and implementing corporate strategic decisions within the unit and in managing the multiple stakeholders, but in return requires more guidance, resources and support from senior management.

Maximising profits: Do revenue managers have the skills?

This paper explores the evolving role of the revenue manager and it will argue the need for a formal revenue management (RM) qualification. When RM is deployed ineffectively, this raises the financial risk inherent in the concept. Service firms need to clearly define RM roles and ensure those involved in RM have the right skill-set. With a view to regulating RM approaches, data was collected via surveys and scrutiny of current job descriptions, to identify the range of skills required to successfully deploy RM at the tactical and strategic level of the organisation. Some general trends emerged identifying the links between the RM and optimum performance, in service businesses. To ensure profit enhancement, the results of this research will be deployed to develop RM benchmark standards in conjunction with a RM certification programme.