27)MANAGEMENT ACCOUNTING

The basic principle of management accounting in hotels is to separate types

of activities and allocate revenues and operating expenses to the respective
departments.
28)YIELD indicator =
number of rooms sold x average room rate
29)Vertical analysis: percentage share of individual items in revenues
or costs (structural analysis)

o Horizontal analysis: comparison with previous years or plans

o Ratio analysis: relative values (profitability, liquidity, relation of

costs to revenues)
30)SERVICE QUALITY
it is a delivery of service that meets or exceeds the buyer’s expectations.
Attempts to understand the reasons behind low quality services have led to a concept known as the gap model
of service quality
31)

32)Concept design of a service product responding to earlier identified customer needs.

Designing a system that would ensure a proper delivery of service.
Preparing a graphic representation of a full cycle of the service delivery.
33) Managing expectations regarding the service requires companies to make realistic
promises and communicate reliable, true and full information.
To create realistic expectations on the part of clients, companies use modern technology to visualise their
offers. Travel agencies often provide video materials to show clients the hotel, its rooms and nearby
attractions. These materials constitute an excellent form of promotion, and project the nature of the offer better
than still images.
34)STRATEGY
is a process by which a company probes and analyses its economic
environment and resources in order to determine its market options and make
investment decisions to achieve the set goals.
35)TYPES OF STRATEGY

There are three types of internally cohesive strategies that can be applied
individually or in combination. They allow a company to generate results better
than those achieved by its competitors in a given industry. The strategies are:

-cost leadership
-product or service differentiation
-concentration: focusing on specific market segments
36)An important part of a company’s strategy is its behaviour towards rivals. It
can assume the following forms:

-warfare
-imitation
-cooperation
-searching for market niches
37)The critical (break-even) point

The intersection of two curves: total revenue and total costs. The
critical point indicates the hotel’s capacity utilisation at which it makes
zero profits. Hence capacity utilisation is extremely important.

38) Each separated activity(department), for example the rooms

department, food and beverage department, retail department or
transport department, prepares the following account:

operating revenue – operating costs = operating profit -

operating profit – undivided costs = gross operating profit -
gross operating profit – fixed costs and charges = profit after costs and charges -
profit after costs and charges ± (other income – other costs) = profit on sales

39) In he hotel industry the issue of service design is about the scope of service processes
standardisation.

Staff empowerment can help in the process of service design. Empowerment means that employees
are given substantial discretion in the process of serving guests. The rationale is that only through
personal contact the staff will find the best way of meeting customer needs and expectations.
40)