1-minute video: Julie Keyser-Squires explains the benefits of flow-through.
More Info on Flow-through Business Analysis: Flow-Through Viewpoint
Innovators: Joseph S. Bello, CHA, vice president, asset management, Inland American Lodging Advisors, Inc. and the Inland Asset Management Team.
Warren Winslow, CPA, CHAE, CHTP, Corporate Controller for Peabody Hotel Group
Where they innovated: At 103 properties controlled by Inland American Lodging Advisors (IALA) and owned by Inland American Lodging Corporation.
At Peabody Hotel Group, which operates three of its own branded properties and six additional hotels with Hilton and IHG flags.
What they innovated: First, both leaders automated the flow through reporting process that calculates after budget profitability for departments, properties and hotel groups. Then, they used the tool to develop stronger managers.
“A low Gross Operating Profit flow-through triggers greater focus on a hotel by our asset management team, as well as our various management companies. This helps us develop critiques and action plans together that ultimately maximizes ownership value.” – Joseph Bello
“When your property teams are educated regarding the foundation and application of flow-through, they are inevitably better managers, because they understand what it takes to retain and allow more revenue to flow to the bottom line.” - Warren Winslow
Who helped: The professional team at Aptech Computer Systems, Inc. with Aptech’s Executive® business intelligence tool.
Can you innovate too? Yes!
- Focus on flow-through whether you calculate it manually or with an automated system.
- Continue to pay close attention to the impact your expenses have on new revenue.
- Train your team to monitor your flow-through score weekly.
This article first appeared on our website in April 2009 to help hotel operators improve profitability. Aptech is a long-term client of Softscribe Inc. If you are a hotel operator, how have you used flow through to blunt the downturn?
