1) How would you describe a ratio analysis? Is each of its components necessary? Which of the figures would you identify as being more beneficial for the general manager of a major hotel? Why are these figures so important? Choose a classmate's response that is different from yours and provide a convincing argument on why your choice of figures is more important.
2) Examine the Trend Report on p. 71 (Ch.3) of Hospitality Financial Management. Explain the importance of the trend analysis document. In what ways will this information aid the business owner? Is this information really necessary, or can a hotel owner be successful without it? Explain your reasoning. What additional information do you feel is important enough to add to this report? Is there any information you would take out to make it easier to understand?
3) However, reports are only as good as the actions the reader takes as a result of these reports. We raise our rates, what happens? The competition lowers their rates, what happens? If you review the trend report, you will see that there is an interaction between rates and occupancy and the competitors. Who sees a pattern? And what do we do other than just contemplate our navels once we have read the reports? At halftime, the coach reviews what happened in the first half. But he/she always says, here's what we are going to do to adjust in the second half. So......what does this trend report say that our hotel must do?
4.Profitability ratios are certainly important and are most familiar to those of us who have been on the operations side of a business. Class, is it possible that a firm can be profitable and go out of business? Hint: is profit the same thing as cash
