Balancing Costs And Services At Loews L'Enfant Plaza
"There is a constant balancing act of keeping costs low while maintaining services."
That's the challenge for Lise Adams, Controller of the Loews L'Enfant Plaza Hotel in Washington, D.C.
The balancing act begins with the budgeting process each July. Setting the revenue budget is the first step. The room budget drives all other factors. Adams bases that budget on the forecast of the number, percent, and category of rooms projected to be booked during the coming year. She reviews the fixed changes for room rates every fall. On a more immediate time frame, the hotel's revenue manager tracks what other hotels in the area are doing and adjusts rates accordingly.
"We stay flexible. We look at the pressure for rooms and drop the rate if there is no pressure. It's kind of a game. We open and close reservations constantly. The most flexible area for rates are those quoted to transient travelers and business travelers who do not have a standing contract with the hotel."
Food & Beverage budgeting is next, with all other departments following. F&B has seen a turnaround at her hotel in the last three years, with the arrival of the new F&B Manager. Three years ago, it was, at best, a break-even operation. She expects to see a 15-20% profit this year.
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