The hospitality industry consisting of Hotels, Motels, Lodges, and Inns must look for ways to sustain their growth & finances as online private accommodation aggregators flood the marketplace with new inventory. lodging ecosystem is vulnerable to threats from multiple fronts. The hospitality industry is becoming more cost and profit-conscious and guests are placing increased importance on price and the quality of services they receive. As a result, businesses of all sizes are seeking out technology solutions that can help increase revenue, minimize costs, and maximize profits without affecting service quality.
To address the need for better financial management, we at Fruxient Analytics enable the digital transformation of accounting procedures & business processes to reduce financial inefficiencies and reduce turnaround time in AP/AR management. Along with providing world-class accounting services for various players in the hospitality industry, we provide financial analysis and business intelligence to reduce your operating expenses, strengthen the cash flow and increase your profitability.
What We Do
- General accounting & bookkeeping – Setting up the chart of accounts, cleanup work for new clients, recording incomes & expenses, entering & reconciling bank transactions and recording payroll
- Accounts Payable management – Entering invoices of vendors in accounting software, processing bills payable in Bill.com and Plooto, making journal entries for month-end payables
- Cash Flow & Budgeting – Preparing annual budgets for projecting incomes & expenses, cash flow projections, NPV and Payback period
- Financial Analysis & Business Intelligence – Analysing various Key Performance Indicators for better financial analysis & cost control.
Key Performance Indicators
- Occupancy rate – Occupancy rate can be used to assess how efficient a hotel is at making use of the space available and can be used in conjunction with other metrics to maximize revenue.
- AvDR – AvDR or Average daily rate refers to the average rental income per paid occupied room. It indicates how much revenue the business is earning per occupied room in a day
- GPPAR – Gross Operating Profit Per Available Room indicates gross profit earned per occupied room throughout the year.
- TrevPAR – Total revenue per available room is calculated by dividing the total revenue of an entire property by the total available rooms. As hotels also earn revenue from room service, banquet halls and conferences, this indicator shows the overall financial health of a hotel.
- ARPA – Average revenue per account is a KPI which indicates the average amount of revenue per customer account, over a particular period. It is usually calculated on a monthly or yearly basis to know the revenue generated by existing customers.
- Operating Profit/EBITDA – Earnings before interest, taxes, depreciation, and amortization demonstrate the day-to-day operating profitability of a hotel after deducting operating expenses from revenue. Therefore, it is especially useful when comparing the financial performance of a business