Bill Green’s Post

The cash conversion cycle (CCC) measures how long it takes for a company to convert its investments in inventory and other resources into cash flow from sales. For a hotel, the cash conversion cycle involves several stages: Inventory Management: In the context of a hotel, inventory includes items such as linens, toiletries, and food and beverage supplies. The hotel needs to manage its inventory efficiently to ensure it has enough on hand to meet guest demands without overstocking, which ties up cash unnecessarily. Accounts Receivable: Hotels often provide services to guests on credit, such as room charges and amenities. The time it takes for guests to pay their bills affects the cash conversion cycle. Prompt payment processing and effective credit management can help minimize the time between providing services and receiving payment. Accounts Payable: Hotels also have expenses to pay, such as utilities, maintenance services, and suppliers for inventory. Managing accounts payable effectively involves negotiating favorable payment terms with suppliers while ensuring timely payments to avoid penalties. Let's break down how the cash conversion cycle works for a hotel: Starting Point: The hotel invests cash to purchase inventory and pay for operating expenses. Inventory Holding Period: This is the time it takes for the hotel to sell its inventory. For a hotel, this includes room nights, food and beverage sales, and other services offered to guests. Accounts Receivable Collection Period: After guests check out, they are billed for their stay and any additional charges. The hotel must wait for guests to pay their bills, which lengthens the cash conversion cycle. Accounts Payable Payment Period: During this period, the hotel pays its suppliers for inventory, utilities, and other expenses. Ending Point: Once the hotel receives payment from guests and pays its suppliers, it can convert the cash back into inventory or invest it in other areas of the business. Efficient management of each stage of the cash conversion cycle is crucial for a hotel to maintain healthy cash flow and liquidity. By reducing the time it takes to convert inventory and receivables into cash while managing payables effectively, a hotel can improve its financial performance and operational efficiency.

The range of cash-related processes you have to deal with on any given day is vast and likely includes any combination of counting, reconciliation, cash storage, preparing deposits for your CIT supplier, record-keeping, and reporting. Watch this webinar featuring Finance Directors from Ritz Carlton and Marriott on the difference GLORY has made. GLORY

The range of cash-related processes you have to deal with on any given day is vast and likely includes any combination of counting, reconciliation, cash storage, preparing deposits for your CIT supplier, record-keeping, and reporting. Watch this webinar featuring Finance Directors from Ritz Carlton and Marriott on the difference GLORY has made. GLORY

How Finance, Sales, and Accounts fit into a Wellness Resort's Daily Operational Checklist: Finance: 1. Revenue Tracking: Daily monitoring of revenue streams from various sources such as accommodations, spa services, dining, and wellness programs.    2. Expense Management: Reviewing and approving daily expenses incurred across departments, ensuring they align with budgetary constraints and financial goals.    3. Cash Handling: Verifying cash transactions, reconciling cash registers, and depositing funds in accordance with internal controls and accounting procedures. Sales: 1. Reservation Management: Handling daily inquiries, processing reservations, and managing room availability to maximize occupancy and revenue.    2. Promotions and Packages: Implementing daily sales promotions and packages to drive bookings, spa appointments, and participation in wellness activities.    3. Guest Engagement: Proactively reaching out to guests through personalized emails or calls to upsell services, encourage extended stays, or promote loyalty programs. Accounts: 1. Invoicing and Billing: Generating and sending out invoices for accommodations, spa treatments, dining, and other services provided to guests.    2. Accounts Receivable: Monitoring daily receivables, following up on outstanding payments, and reconciling accounts to ensure accurate financial records.    3. Vendor Management: Reviewing and processing daily vendor invoices, verifying services rendered or goods received, and scheduling timely payments to maintain good vendor relationships. P.S. A heartfelt thank you to ChatGPT for helping craft this message!

The range of cash-related processes you have to deal with on any given day is vast and likely includes any combination of counting, reconciliation, cash storage, preparing deposits for your CIT supplier, record-keeping, and reporting. Watch this webinar featuring Finance Directors from Ritz Carlton and Marriott on the difference GLORY has made. GLORY

Driving Profits Through Smart Revenue Management As revenue management consultants for the hospitality industry, we help our clients maximize income through data-driven pricing and inventory control strategies. Our comprehensive services include: Forecasting Demand to Optimize Pricing - Setting optimal dynamic room rates, menu prices, and F&B offerings - Utilizing historical data, market trends, and predictive analytics to forecast demand Managing Distribution Channels - Balancing commission costs - Determining which third-party booking/ordering sites and travel agent partners to use to reach target customers Developing Incentivizing Packages and Promotions - Stimulating sales during lower demand periods - Creating packages and promos like discounted weekend stays, happy hour deals, prix fixe menus, etc. Monitoring Success and Adjusting  - Refining the strategy accordingly - Continually monitoring analytics to see which rates, channels, and promotions are working Automating and Training - Training staff to utilize the tools effectively - Implementing user-friendly revenue management software With our revenue management expertise, clients are able to precisely match supply and demand to maximize revenue. This results in optimizing both occupancy rates and average daily/check rates. Let us help your hotel or restaurant operate more profitably. https://lnkd.in/djFTv5ky

Check out this case study about how Olympia Hospitality uses our G3 RMS to improve inventory management and increase ADR by 10%. #RevenueManagement #HotelManagement #Hospitality

Hotel procurement is all about balancing priorities. From managing costs and ensuring product availability to embracing sustainability, every decision impacts your bottom line and guest experience. Curious how procurement software can help you tackle these challenges? 🏨🌍 Check out how these 7 companies can make your purchasing process smoother and more efficient: https://hubs.la/Q02QMv0P0 #hotelprocurement #hospitality #procurement #purchasing

9: Guest Personalisation through Inventory  Personalise your guest experience using detailed inventory data. Offer preferred amenities and tailor dining options based on previous preferences. Enhance loyalty programmes with customised offerings. Capcon’s inventory management allows for deep personalisation to boost guest loyalty and satisfaction.  https://lnkd.in/ebWCz26z #PersonalisedExperience #GuestLoyalty #InventoryManagement #CapconSeries #TechInHospitality #StockControls