Inhoud
Ch 1 Schmidgall pp 3-8................................................................................2
The Book......................................................................................................5
Chapter 1..................................................................................................5
Chapter 2 (p20-32).................................................................................10
Chapter 4 (71-85)...................................................................................13
Lecture 2....................................................................................................16
Lecture 3....................................................................................................17
Lecture 4....................................................................................................18
Lecture 5....................................................................................................20
Lecture 6....................................................................................................21
Lecture 9....................................................................................................24
Lecture 10..................................................................................................26
Lecture 11..................................................................................................28
Lecture 13..................................................................................................29
Lecture 14..................................................................................................30
Lecture 15..................................................................................................42
Lecture 16..................................................................................................43
Test 1..........................................................................................................44
Word list.....................................................................................................45
1
,Ch 1 Schmidgall pp 3-8
Homework lecture 1
Megahotels -> more than 1000 rooms
Paid occupancy percentage indicates what percentage of the rooms
available for sale are actually sold. It is calculated by dividing the number
of rooms sold by the number of rooms available.
Transient hotels = hotels that cater primarily to business people.
Distribution chain = refers to the process and steps involved in getting a
product or service from the producer to the final consumer. In hospitality,
it includes suppliers providing goods (like food or linens) to hotels or
restaurants, which then deliver these products and services directly to
guests -> short in hospitality industry.
Weekly seasonality for many resort hotels results in the opposite
distribution; their busiest periods are usually weekends rather than
weekdays. Their multiple occupancy, determined by dividing the number
of rooms with more than one guests by the total number of rooms
occupied, is higher than that of transient hotels.
- Multiple occupancy is highest at resort hotels and lowest at
transient hotels.
Seasonality is a serious factor; many resorts are open for only one
season of the year.
Short product lifecycle: Hotels sell "rooms" daily; unsold rooms can't be
recovered. The product is produced, sold and consumed at the same
location, often in less than two hours.
In hospitality operations short distribution chain and time span -> Food
service. So, they maintain a minimal inventory of the good state provide
(they want to have little adventure production, because what if it has
failed the consumers expectations). This is why hospitality industry
generally have less than 5% of their total assets invested inventory of
goods for resale -> Food and beverage inventory is used quickly, often
purchased one day and sold the next.
Lodging facility = a place that provides temporary accommodations for
travellers, such as hotels, motels, resorts, or inns. It offers services ranging
from basic rooms to luxury amenities.
Labor-intensive industry: Requires many employees for guest services
(Check in, checkout) and food prep.
2
,Hospitality properties are fixed-asset-intensive (high percentage) A
hotel room, as a product, is carried as a fixed asset and it is written off
(depreciated) overtime.
A room is the most perishable product a lodging operation has because
the revenue lost from an unsolved room can never be regained.
1. How does the hospitality industry differ from many other
industries?
The hospitality industry is unique because it combines both products
and services. Unlike manufacturing industries, it deals with
perishable products, such as hotel rooms and restaurant meals,
which cannot be stored or sold later. The industry is also highly
labour-intensive, requiring a significant workforce to provide
services, and it faces large seasonal fluctuations in demand, which
vary by time of year, week, or even day.
2. Why are food and beverage inventories relatively low in
hospitality operations?
Food and beverage inventories are low because the products are
highly perishable and consumed quickly. Hospitality operations
typically purchase raw materials like ingredients just in time to
prepare meals, ensuring freshness and minimizing storage costs.
The short production and consumption cycle reduces the need to
maintain large inventories.
3. What are three aspects of seasonality in lodging properties?
Seasonality in lodging properties includes:
o Daily seasonality: Hotels are busier during check-in and
check-out times, typically in the afternoons and mornings.
o Weekly seasonality: Business hotels are busiest on
weekdays, while resorts thrive on weekends.
o Annual seasonality: Many properties experience peak
demand during specific seasons, such as winter for ski resorts
or summer for coastal hotels.
4. What is the scope of the accounting function in hotels?
The accounting function in hotels includes managing financial
records, preparing budgets, handling payroll, tracking receivables
and payables, ensuring internal controls, and generating financial
reports. It provides key information to both internal managers and
external stakeholders, helping to track costs and revenue while
supporting strategic decision-making.
3
, 5. What are the major principles of accounting?
The major principles of accounting include:
o Accrual principle: Recording revenue and expenses when
they are earned or incurred, not when cash is received or paid.
o Consistency principle: Using the same accounting methods
over time for comparability.
o Going concern principle: Assuming the business will
continue to operate in the foreseeable future.
o Matching principle: Matching revenues with related
expenses in the same period.
o Conservatism principle: Reporting expenses and liabilities
as soon as possible, but only recognizing revenue when it is
assured.
6. What are the various branches of accounting?
The branches of accounting include:
o Financial accounting: Preparing external financial
statements.
o Managerial accounting: Providing internal financial data for
decision-making.
o Tax accounting: Handling tax returns and compliance.
o Cost accounting: Analysing costs to improve efficiency.
o Auditing: Examining records for accuracy and compliance.
o Forensic accounting: Investigating financial discrepancies or
fraud.
7. Why are rooms, in essence, perishable inventory?
Hotel rooms are perishable inventory because they cannot be stored
or resold after the day has passed. If a room is not sold on a
particular night, the revenue for that room is permanently lost,
making it critical for hotels to maximize occupancy and minimize
unsold inventory.
8. What are the four forms of business organization?
The four forms of business organization are:
o Sole proprietorship: A business owned and operated by one
person.
4
Ch 1 Schmidgall pp 3-8................................................................................2
The Book......................................................................................................5
Chapter 1..................................................................................................5
Chapter 2 (p20-32).................................................................................10
Chapter 4 (71-85)...................................................................................13
Lecture 2....................................................................................................16
Lecture 3....................................................................................................17
Lecture 4....................................................................................................18
Lecture 5....................................................................................................20
Lecture 6....................................................................................................21
Lecture 9....................................................................................................24
Lecture 10..................................................................................................26
Lecture 11..................................................................................................28
Lecture 13..................................................................................................29
Lecture 14..................................................................................................30
Lecture 15..................................................................................................42
Lecture 16..................................................................................................43
Test 1..........................................................................................................44
Word list.....................................................................................................45
1
,Ch 1 Schmidgall pp 3-8
Homework lecture 1
Megahotels -> more than 1000 rooms
Paid occupancy percentage indicates what percentage of the rooms
available for sale are actually sold. It is calculated by dividing the number
of rooms sold by the number of rooms available.
Transient hotels = hotels that cater primarily to business people.
Distribution chain = refers to the process and steps involved in getting a
product or service from the producer to the final consumer. In hospitality,
it includes suppliers providing goods (like food or linens) to hotels or
restaurants, which then deliver these products and services directly to
guests -> short in hospitality industry.
Weekly seasonality for many resort hotels results in the opposite
distribution; their busiest periods are usually weekends rather than
weekdays. Their multiple occupancy, determined by dividing the number
of rooms with more than one guests by the total number of rooms
occupied, is higher than that of transient hotels.
- Multiple occupancy is highest at resort hotels and lowest at
transient hotels.
Seasonality is a serious factor; many resorts are open for only one
season of the year.
Short product lifecycle: Hotels sell "rooms" daily; unsold rooms can't be
recovered. The product is produced, sold and consumed at the same
location, often in less than two hours.
In hospitality operations short distribution chain and time span -> Food
service. So, they maintain a minimal inventory of the good state provide
(they want to have little adventure production, because what if it has
failed the consumers expectations). This is why hospitality industry
generally have less than 5% of their total assets invested inventory of
goods for resale -> Food and beverage inventory is used quickly, often
purchased one day and sold the next.
Lodging facility = a place that provides temporary accommodations for
travellers, such as hotels, motels, resorts, or inns. It offers services ranging
from basic rooms to luxury amenities.
Labor-intensive industry: Requires many employees for guest services
(Check in, checkout) and food prep.
2
,Hospitality properties are fixed-asset-intensive (high percentage) A
hotel room, as a product, is carried as a fixed asset and it is written off
(depreciated) overtime.
A room is the most perishable product a lodging operation has because
the revenue lost from an unsolved room can never be regained.
1. How does the hospitality industry differ from many other
industries?
The hospitality industry is unique because it combines both products
and services. Unlike manufacturing industries, it deals with
perishable products, such as hotel rooms and restaurant meals,
which cannot be stored or sold later. The industry is also highly
labour-intensive, requiring a significant workforce to provide
services, and it faces large seasonal fluctuations in demand, which
vary by time of year, week, or even day.
2. Why are food and beverage inventories relatively low in
hospitality operations?
Food and beverage inventories are low because the products are
highly perishable and consumed quickly. Hospitality operations
typically purchase raw materials like ingredients just in time to
prepare meals, ensuring freshness and minimizing storage costs.
The short production and consumption cycle reduces the need to
maintain large inventories.
3. What are three aspects of seasonality in lodging properties?
Seasonality in lodging properties includes:
o Daily seasonality: Hotels are busier during check-in and
check-out times, typically in the afternoons and mornings.
o Weekly seasonality: Business hotels are busiest on
weekdays, while resorts thrive on weekends.
o Annual seasonality: Many properties experience peak
demand during specific seasons, such as winter for ski resorts
or summer for coastal hotels.
4. What is the scope of the accounting function in hotels?
The accounting function in hotels includes managing financial
records, preparing budgets, handling payroll, tracking receivables
and payables, ensuring internal controls, and generating financial
reports. It provides key information to both internal managers and
external stakeholders, helping to track costs and revenue while
supporting strategic decision-making.
3
, 5. What are the major principles of accounting?
The major principles of accounting include:
o Accrual principle: Recording revenue and expenses when
they are earned or incurred, not when cash is received or paid.
o Consistency principle: Using the same accounting methods
over time for comparability.
o Going concern principle: Assuming the business will
continue to operate in the foreseeable future.
o Matching principle: Matching revenues with related
expenses in the same period.
o Conservatism principle: Reporting expenses and liabilities
as soon as possible, but only recognizing revenue when it is
assured.
6. What are the various branches of accounting?
The branches of accounting include:
o Financial accounting: Preparing external financial
statements.
o Managerial accounting: Providing internal financial data for
decision-making.
o Tax accounting: Handling tax returns and compliance.
o Cost accounting: Analysing costs to improve efficiency.
o Auditing: Examining records for accuracy and compliance.
o Forensic accounting: Investigating financial discrepancies or
fraud.
7. Why are rooms, in essence, perishable inventory?
Hotel rooms are perishable inventory because they cannot be stored
or resold after the day has passed. If a room is not sold on a
particular night, the revenue for that room is permanently lost,
making it critical for hotels to maximize occupancy and minimize
unsold inventory.
8. What are the four forms of business organization?
The four forms of business organization are:
o Sole proprietorship: A business owned and operated by one
person.
4
