Business Basics
Departments in hospitality businesses that generate revenue through the operation of the business.
Revenue centers
The process of using forecasting information to adjust prices to reflect that demand.
Yield management
Money owed to other companies.
Liabilities
The amount of revenue brought in per square foot of event space.
Revenue per square foot (RPSF)
The technique used to predict guest demand and optimize product availability and price to maximize revenue.
Revenue management
A report that looks at the overall financial position of the business at any given time.
Balance sheet
Departments in hospitality businesses that do not generate revenue but are needed for the operation of the business and to support revenue centers.
Cost centers
The process of deciding which set of guests are more beneficial to the business—usually between a large group of people or guests who would come into the business individually.
Displacement analysis
Things the company owns that have a commercial value such as a building, land, food, or plates.
Assets
Numbers, or percentages, that show how a business is performing.
Key performance indicators (KPIs)
Reflects the amount of sales that will be lost if an operation increases prices.
Price elasticity
A report used to make expense decisions for longer periods of time, usually five years or more.
Capital budget
The amount of revenue generated given the number of rooms or seats available.
Revenue per available seat per hour (RevPASH)
A group of hotels that are seen as direct competitors in terms of geographic location, type of hotel, or amenities offered.
Competitive set (comp set)
A document that shows the company’s revenue and expenses for a specific period of time, usually for a month, quarter, or year.
Income statement