Peter J. Harris

Research and development in hospitality accounting and financial management

Abstract This article presents an overview of research and development in accounting and financial management,with particular emphasis on the contribution of applied work for the hospitality industry. The findings indicate that, whilst there has been wide coverage of topic material comprising a number of notable developments, some of the research is inward looking, containing inadequate methodologies and superficial results, thereby contributing little to the generic body of knowledge in the discipline. However, with a more indepth approach to research and greater collaboration and cooperation among hospitality and other researchers the contribution to hospitality accounting and the broader accounting field could be significantly improved.

Performance measurement practice in an independent hotel context

Purpose – The aim of this work is to explore performance measurement practices in the context of an independent hotel in Northern Cyprus.Design/methodology/approach – The study was conducted in a 392‐room five‐star resort hotel over a nine‐week period using multiple data collection methods comprising semi‐structured interviews, documentation collection and observation. In the context of the case hotel, three decision‐making groups – employees, managers, and regional executive – were involved in order that the performance measurement and the decision‐making mechanism could be described.Findings – The findings indicated six main themes, which are grouped under business dynamics and overall performance, employee performance, customer satisfaction, financial performance, and innovative activities performance measures, so that understanding the type, the communication process and the purpose of utilising the performance measures is described and analysed.Originality/value – This paper presents the results of p...

Development of a profit planning framework in an international hotel chain: a case study.

This article presents the results of a project undertaken to increase the effectiveness of decision makingat the property level in the Europe, Middle East, Africa division of an international hotel chain. The objective of the project was to provide the basis for a more informed approach to routine financialplanning and control decisions of property management teams with the aim of enhancing operational profitability. The techniques used to underpin the framework are evaluated in relation to their practical application in the decision‐making process and the rationale and method of implementation of the management development programme is explained.The framework was approved by the company’s management board for implementation throughout the division and feedback from property management and assessment of financial results suggest the approach has made a significant contribution to profit improvement.

Management accounting and corporate management: insights into multinational hotel companies

Purpose – The aim of this paper is to provide insights into the links between managerial accounting, as a tool for monitoring and governing multinational hotel companies, and corporate management approaches.Design/methodology/approach – The paper builds upon an extensive survey of general managers previously published by the authors, followed up with interviews and an in‐depth analysis of different management scenarios in the context of multinational hotel companies.Findings – This papers findings suggest that “management by values” appears to be particularly adapted to multinational hotel companies, because of their organisation features, i.e. a network spread in different environments, and partially shapes the management accounting choices of performance indicators at various levels in the organisation.Research limitations/implications – The limitations of this research would depend on the limited amount of data collected, i.e. 13 interviews, of which eight are analysed, if there were any attempt to ge...

A development strategy for the hospitality operations management curriculum

Presents an approach to hospitality operations management curriculum development in higher education programmes. The method proposed was developed in the context of the hospitality product and the management decision making involved in operations management. The determination of curriculum content is illustrated using the accounting contribution as an example.

Towards a valuation framework for hotels as business entities.

Presents an evaluation of the theoretical context and practical application of different methods of hotel valuation, with particular emphasis on the methods related to the income‐generating capacity of a hotel. The findings reveal a wide range of variation and complexity between methods and that each method has benefits and limitations and requires adjustments and assumptions in different market conditions. However, it is concluded that the more sophisticated “income‐based” income capitalisation methods constitute the most effective basis for a framework on which to derive the open market value for a hotel as an ongoing business entity, but that one or more of the other main valuation approaches should be drawn on in order to effect the reconciliation of a hotel’s final value.

The application of regression and correlation techniques for cost planning and control decisions in the hotel industry

Abstract A critical factor that contributes to the effectiveness of routine managerial decisions is an understanding of how costs behave under different conditi research study into departmental cost behaviour carried out using statistical cost analysis techniques in a 300-room hotel. The methodology employed for the collection and analysis of the hotel operating cost data over a three-year period is outlined. This is followed by a discussion of the interpretation and evaluation of abridged results in terms of technical and practical applications.

A seminar role-play model for hospitality accounting and finance education: development, implementation, and evaluation.

Abstract Alongside areas such as operations, marketing, human resource management and information technology, accounting and financial management is in the forefront of business management education and training. However, the full value of financial knowledge lies in the ability to apply the theory learned in a decision making context. This paper presents the use of a technique known as ‘seminar role-plays’ which retains the intellectual integrity of theoretical study and facilitates the application of knowledge in live scenarios. The content includes an explanation of the development process and method used in the implementation of seminar role-plays together with an evaluation of the technique in the live learning environment.

Hospitality Profit Planning in the Practical Environment: Integrating Cost‐volume‐profit Analysis with Spreadsheet Management

Managers are constantly making decisions that affect profit. One of the decision‐making areas which is crucial to all managers concerns profit planning. Attempts to show how cost‐volume‐profit (CVP) analysis, aided by the computer spreadsheet, can be applied to the practical profit planning situation in the hospitality industry. Paradoxically, CVP analysis is one of the most widely referred to techniques in managerial accounting, but all too often it is not used to its full potential in the operating environment. Aims at encouraging greater use of the CVP approach to hospitality profit planning.

An approach to financial planning using computer spreadsheets

Abstract Computer spreadsheet models can offer substantial benefits to managers in the financial planning process of business activities. This article shows how to create a simple financial model which incorporates the fundamental principles of spreadsheet design and subsequently develop a profit planning model for a restaurant business. The discussion assumes that the reader understands management accounting, but has a limited knowledge of computer spreadsheets.