Hospitality Business Toolkit

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1 ................................................................................................................................................3
Investigate the principles of monitoring and managing the financial performance...............3
Use double entry book keeping system to record sales and purchase transactions in a general
ledger......................................................................................................................................4
Make a trial balance applying the use of the balance off rule................................................5
LO 2.................................................................................................................................................5
Analyse the different stages of HR life cycle applied in hospitality job role and its importance
of retaining and developing talent..........................................................................................5
Develop a performance management role for hospitality job role, with the application of
techniques for resolving negative behaviour and to overcome issues of staff retention........7
LO 3.................................................................................................................................................8
Specific legislations that hospitality organisation has to comply...........................................8
Evaluate how company, employment and contract law will have potential impact on decision
making in hospitality industry................................................................................................9
LO 4...............................................................................................................................................10
Interrelations between functional roles within hospitality sector.........................................10
Discuss different methods of communication, coordination and monitoring applied within a
specific department of hospitality department to strengthen value chain............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality management can be defined as business in the sector of hotels, cruise ships,
resorts etc. (Etherton‐Beer and et. al., 2021). Any individual who is involved in hospitality
management has to manage the staff and service in the hospitality business. The managers have
to apply some management concepts and structural leadership in dining, areas of accommodation
general guest services and staff management. They have to work in every function and
responsibilities to ensure that guest experiences best services. The staff member has to ensure the
warm welcome of the guest and to provide every service which the guests want. Intercontinental
Hotels & Resorts was created in 1946 by Pan Am's founder Juan Trippe. This hotel has 213
hotels & resorts and its headquarter is in Denham, Buckinghamshire, UK. This report covers
finance and record transactions to reduce costs within the hospitality industry. It also covers how
to manage the human resource life cycle within HR strategy. In addition with it, this report
covers the impact of legal and ethical considerations on hospitality business. This report give
detailed information on importance of coordinating and integrating various functions of
departments within the hospitality sector.
LO 1
Investigate the principles of monitoring and managing the financial performance.
Monitoring and managing the financial performance provides certainty in the functioning
of activities (McClanahan, Goorley and Auxier, 2021). Because monitoring the accounts helps to
prevent the bankruptcy and allows the management to make short term and long term decisions.
Managing the finances of Intercontinental it is essential because it helps to do further planning of
effective utilisation of resources. With the coming of new technologies there are new ways
which the hospitality industry can monitor their financial performance. They have to monitor the
KPI and have to use it for optimizing the operations which will increase the profitability. The
hospitality business uses various financial statements for measuring their performance in
monetary terminology. There are certain principles which are used to monitor and manage the
financial performance which are discussed below- Preparation of inventory records- Inventory records means to record all the information
about the stock and the type of stock which the entity possess. In Intercontinental it is
important to check the number and types of rooms available. Effective inventory

preparation involves yield and revenue management. This is the most important record
which every hotels keep it with themselves.
 Preparation of key financial statements- Preparing financial statements is considered to
be good for making better decisions and also help the management to work efficiently.
The financial statements involves summarising, reporting and analysing of the financial
statements which helps to forecast future results.
 Organise the finances- The finances which the intercontinental maintains has to be
organized in an effective manner. Personal loans, bank accounts credit cards and other
transactions must be tracked. Organizing finance provides the information about how
they have used and what other safety they have to take.
Use double entry book keeping system to record sales and purchase transactions in a general
ledger.
 Double entry book keeping means to record any business transactions amount must be
documented in two accounts (Barik, Prusti and Mohapatra, 2020). This system also
requires that both the debit and credit side must be equal.