Preparing a Housekeeping Budget
Housekeeping….
“…. Is The Heart of a Hotel”
Why Do We Need to Prepare a
Budget?
 To determine and clearly list our objectives
 To provide us with a guide to achieving our
objectives
 To serve as a basis for evaluating
performance
Preparing a Budget for
Housekeeping
 Different Types of Budgets
 Zero-based budgeting
 Incremental budgeting
4
Preparing a Budget for
Housekeeping
 Capital Budget
 Operating Budget
 Fixed Cost
 Variable Cost
 Operating Equipment
5
Fixed Costs and Variable Costs
 Fixed cost
A cost or expense that will not change as a
result of changes in revenue or level of
business
 Variable cost
A cost that changes in direct proportion to
the revenue or volume of business
Fixed Costs and Variable Costs
Payroll
 Payroll is an example of fixed and variable
costs (the largest cost we control)
 Depending on Hotel Occ % this needs to be
budgeted to flex.
 However this is one of the costs that needs
to be monitored on a day by day basis.
Guest & Operating Supplies
 Cost of consumable supplies
 Daily
 Weekly
 Monthly
8
Operating Equipment
 How much you will use during a period?
 How much is the cost to order?
 How much is the cost to carry the items in
inventory?
The Impact of Inventory
on Cash
The cost of:
 The item
 Storing the item
 Money
TEAMWORK!
 Financial Success is about teamwork.
 It is EVERYONE’S responsibility to ensure
that the hotel is as profitable as possible
and, therefore, meets its financial targets!
More Information
Templates of the Slides are available from
the UK HouseKeepers Association.
Contact:
Arletty Jooron
Executive Housekeeper
Cavalry & Guards Club
arletty.jooron@cavgdsclub.co.uk
Thank You