Costs Management Team Decisions

From Emerald Forest Hotel
Jump to navigation Jump to search

→ Go! Category:Game play
 


GAME PLAY

Structure of the costs groups

In your operating review at the tab results there are three major groups of costs. Mouseover the first cells with the small black triangle and you will get additional information on the numbers.

Example of all data on costs throughout the years.

As you can see in this example above shows the operating review of a demo Management Team after four years: this is how it looks in your Team File. The year 0 is your starting position, (these data are available), the other four years are just an impressions on how things might develop:
More info on costs:

Overview of total of the costs of Management Team Decisions

Let's check the costs related to the decisions you took for the hotel. At the time you take over they are none: in the picture the grey area. In the table underneath the green numbers.

Costs
Costs: fixed Depreciation costs of existing assets € 525,187 34.64%
Fixed staff costs € 550,271 36.29%
Costs of premises € 390,473 25.75%
Insurance & interest costs € 50,012 03.29%
Total fixed costs € 1,515,943 100% 62.36%
Costs: variable Variable staff costs € 355,170 38.95%
Laundry costs € 118,390 12.94%
Cleaning costs € 236,780 25.88%
F&B purchase costs € 204,312 22.33%
Total variable costs € 914,652 100%37.63%
Costs: team decisions Marketing costs € 0 00.00%
Extra staff development costs € 0 00.00%
Extra depreciations costs € 0 00.00%
Market research costs € 0 00.00%
Other costs € 0 00.00%
Total team decisions costs € 0 100% 00.00%
Total all costs € 2,430,595 € 2,430,595 100%


As you take over the hotel, there are no expenditures on this cost group. So all expenditures in this part will come extra next to the existing ones. So these are the only costs the new Management Team can influence directly.

Explanations on this

All of the new decisions, Year 1-2-3-4 (numbers 6 -10) in this group, will lead directly to costs. They are directly connected to the situation the family Bergman explained: they have been neglected. As you can see in the past there were no costs made regarding these decisions. Of course, this was good for the profit but it will come back like a boomerang! So the family urges the new management to use these costs group 'Team decisions' in an efficient way. The screenshots just show a few years as an example during some testing with the accountant. The history is the only valid, last year's result.
Most important, neglected elements in the situation on Emerald Forest Hotel:

  • Marketing costs
  • Staff development
  • Depreciation costs of the new investments
  • Market research costs
  • Other costs

More numbers

Check basic set-up of costs groups in hotels to have some reference on the numbers.
Of course, any situation is different, any time frame (think of the Covid period), the ownership, the state (quality) of the premises etc. The file, though, this might give some ideas from a calculative perspective.



→ GO! Top of this page

Emerald Forest Hotel offer an emerald hotel experience! | Run your own hotel in this management simulation.