Success Story: Adaptation of the Hotel to present results in USALI Format
Objective
The main objective was to have detailed information by point of sale or profit center. Presenting the Profit and Loss Statement according to USALI (Uniform System of Accounts for the Lodging Industry). This would allow comparisons with other hotel establishments. Both in different geographical areas as well as in their own. Thanks to the use of homogeneous criteria and parameters.
Context in which the actions took place.
The project was conducted in a large hotel. With more than thirty points of sale or profit centers. Including bars, restaurants, and stores. The turnover exceeded thirty million dollars. The establishment registered around 825,000 overnight stays per year. A crucial aspect was the lack of additional resources, both human and material, for the development of the project. This circumstance made it necessary to maximize efficiency and internal organization.
Actions we conducted.
– We set up a specific work team, defining a program and a schedule of actions. Despite the limited resources available.
– We determined the headings to be used and the accounting criteria to be employed. Ensuring that the departmental structure accurately reflected the hotel’s operational reality, in line with the USALI model.
– We reviewed the existing chart of accounts to define the level of detail required. This allowed us to obtain basic and relevant information. This involved the reclassification of all significant items recorded during the year. Ensuring their correct allocation to each department or point of sale.
– We implemented a rigorous methodology for the allocation of income and expenses to responsibility centers. Following the principle of direct costs that characterizes USALI. In this way, each expense and income were imputed into the department that originated it, facilitating subsequent analysis and decision making.
Challenges we had to overcome.
– The initial inexperience in the use of USALI was a major challenge, requiring training and adaptation on the part of the team.
– The size of the hotel and the high volume of information generated complicated data classification and tracking.
– The absorption of time by the daily work made it difficult to dedicate exclusive time to the project. Driving us to make compatible the usual tasks with the development of the new accounting structure.
Constraints we had to respect.
– The IT development team could not dedicate exclusive or even preferential time to the project; therefore, it required very tight planning.
– There was no previous benchmark or reference base of our own, which meant that we had to build the criteria from scratch and validate each step.
– The hotel operation had to be kept as the top priority, without the implementation of the system affecting the service or customer experience.
Results achieved.
– We were able to present the results by profit center according to the USALI standard. Allowing a clear and detailed view of the profitability of each point of sale.
– We established a basis for comparison for subsequent years. Especially regarding the allocation of expenses and costs, facilitating evolutionary analysis and continuous improvement. This allowed more adequate subsequent planning to optimize company performance.
– There was a significant improvement in the management of loss-making points of sale. Thanks to the precise identification of the less profitable areas and the possibility of adopting corrective measures based on objective data.
Demonstrated competencies.
– Perseverance and tenacity to conduct the detailed work of multiplying expense and income items by the number of points of sale, without additional resources.
– Rigorous methodology in assigning accounts to each heading, ensuring maximum accuracy and homogeneity in the information generated.
– Adaptability to adjust the available resources to the volume of work required, while maintaining the quality and operability of the hotel.
Conclusions
Experience shows that, regardless of its size or complexity, it is always possible to have the adaptation of the hotel to present results in USALI format. Provided there is a firm commitment to the organization and the methodology. The implementation of this system not only facilitates comparability with other establishments, but also significantly improves internal management. By providing detailed and homogeneous information by department and point of sale.
The effort invested in adaptation translates into a greater capacity for analysis. Identification of areas for improvement and informed decision making. In addition, USALI provides the basis for more professional and purposeful management. Contributing to the success and sustainability of the hotel business in an increasingly competitive environment.
