The Budget section is where you can use different hotel metrics to create the perfect budget by position per hotel!
By default, this page will open showing All Budgets currently setup. You can also click Service Levels to see that breakdown.
The Service Levels is a typical distribution of room cleaning levels per day of the week. This is only used in forecasting and scheduling. Actual budgets are calculated on actual Daily Activity in Accounting is entered.
You can add a New Service Level using the button shown below.
A new row will be created where you can give this service level a name. Typically, the cleaning service levels are Denied, Departure and Stayovers, but you can add additional like Deep Clean if needed. The total per day should be 100%, as this is a calculation based on Occupancy x Cleaning Service Level percentage.
Transition back to the Budget tab, you can budget position multiple ways. You can view the current budgets, make changes, delete the budget, and create a new budget.
By clicking on a current budget, the budget details will appear. The position name is shown at the top, then the Department. You can add Notes for reference if needed.
Next is Budget Type, here MPOR is selected. Also, the Data From is pulling yesterday’s data. Pulling Yesterday means its selecting yesterday’s rooms occupied. This is typically only used for Housekeeping Department related positions.
Next is whether the position is Assignable. This means this position is tracked on the Housekeeping page. Again, this is typically only added for the Housekeeping or Room Attendant position.
Then assign the appropriate minutes per occupied room per cleaning service level.
All changes made will require you to select Save Budget as shown below.
There are other options when it comes to budgeting. If we select New Budget on the top right, first select which Position you want to budget for.
In this example, we’ll pick Van Driver. Add Notes if needed, then select one of the below Budget Types.
The available budget types are:
1. DOTW is where you add HH:MM based on the day of the week. This may be useful for positions like Night Audit, where it’s the same 8-hour shift per day, or an Evening Social Attendant that only works certain days.
2. Factor of Revenue allows you to budget hours and minutes based on specific accounting chart of accounts. This would be used for positions in the Food & Beverage department. When selecting this budget type, you then add a Display Name. The Display Name is shown on the Forecast page. For example, you may select the chart of account Banquet Revenues, which may be multiple chart of accounts, but you’ll want to Display it in the Forecast as Banquet Revenue. This is so that you don’t have to Forecast for every chart of account, but rather forecast a total number.
Once assigning it a Display Name, then select the Chart of Accounts. You can either search by number or chart of account name in the filter dropdown.
Then update the Factor Configuration by updating the Labor Cost and Average Rate, then selecting Save Budget.
3. Factor of Statistic also allows you to pick the Data From then the specific Statics you wish to calculate off of.
This would mostly be used for Houseman or another position that’s based strictly off of one statistic.
4. MPOR was explained above.
5. Range of Statistics is a budget type that could be used for a position like Front Desk, Housekeeping Supervisor, or Laundry.
IF PRO TIP: This is the most popular method for Labor Management budgets as you can use it for almost all positions except for Housekeeping.
Select the Data From today or yesterday. Again, Today would be used for Front Desk or Van Driver, where Yesterday would be used for Housekeeping related positions.
Next is adding the Range. The Min is always set to 0, and the Max should be the Total Guest Rooms, if budgeting based off of Rooms Occupied, Arrivals, Stayovers, etc.
Let’s say the hotel has 120 rooms, so our Max would be set to 120. Then we want to add additional ranged. Do so by clicking the split button shown below.
If we want 5 ranges, we’d select the Split Range button 4 times. Then either use the slider buttons below to manually adjust the Min & Max per range, or you can also type into the Max column accordingly.
Below, we want to budget based on every 15 rooms, so we want 8 different rows and every 15 rooms.
Now that we have the ranges, we need to add the HH:MM per row.
We’ve added HH:MM for the Housekeeping Supervisor as an example below. The lower the occupancy, the less the hours. The busier the hotel is, the higher the hours budgeted.
6. Range of Revenue is handled the same way as the Factor of Revenue, except you can budget for a range. Below is an example of how that would be setup.
The other features available on this page are Recalculate Budget, Change Log and Copy Budget Settings.
Selecting the Recalculate Budgets will take all changes into account and recalculate all Labor Management budgets for the schedule and performance pages.
Change Log will show all changes made.
Copy Budget Settings allows you to take the current budget settings of one property and copy them over to another property. This is best when setting up budgets initially.
IF PRO TIP: If starting a new property, copy the budget settings from a similar location, then tweak the budget according to that location.