Question

In accounting, what are the main similarities and differences between a 200 rooms of 3 stars hotel and a 200 slots of 3 stars camping sites?

Answer 1

Ans- While many accounting practices can be universally applied to different types of businesses, accounting for the hospitality industry is much different. The Securities and Exchange Commission and Public Company Accounting Oversight Board regulations require that hotels — both independent and franchise — establish set processes to record revenue and expenses.

Hotel Staff Training

Because hotel accounting involves a more complex set of practices than typical accounting, accounting personnel must go through training that differs from traditional training. Aside from the basic revenue and expenses, staff must take into consideration the varying room rates, late charges, vendor contracts and charges made to a room.

The American Hotel and Lodging Association Institute is a nonprofit organization that provides hospitality education and training and will ensure that hotel personnel responsible for accounting are well-versed in best practices.

Occupancy and Daily Rate

The amount of money a hotel makes from its rooms depends on the average daily rate and the occupancy. Not only does a hotel's occupancy vary by time of year, but the daily rate also fluctuates. The occupancy shows how many rooms are rented out in comparison to total rooms, and it is expressed as a percentage. For example, if a hotel has 100 rooms and rents out 85 on a given night, its occupancy rate for that night is 85 percent.

Hotel room price rates are often dependent on the time of year, with higher prices being common during high season. A room that is $150 in high season may only be $100 in the offseason. When you also take into consideration the occupancy rate, the difference in revenue between the two seasons is noticeable.