Health Clubs are put under the charge of the rooms division With an increasing

Health Clubs are put under the charge of the rooms division. With anincreasing population of health conscious travellers this facility promises goodrevenue. Health Clubs can again be simple with a swimming pool changerooms and sauna facilities. Bigger health clubs would have in addition agymnasium, Jacuzzis, yoga rooms, meditation centres, massage parlour andperhaps a range of water sports, trekking facilities etc.Miscellaneous Revenues can come from the sale of postage, safety depositlockers, left luggage, additional services provided to the room like baby-sitting,extra beds, cribs etc.7.5.Expense ForecastsBefore we venture into forecasting expenses let us understand the broad expensecategories. There are four different categories of expenses:a)Fixed expensesb)Variable expensesc)Discretionary expensesd)Semi-variable expensesFixed expenses do not change with changes in volume. Such expenses aredepreciation, interest payments and insurance.Variable expenses change proportionately with changes in volume of business.These are the cost of maintaining saleable rooms. Cleaning supplies, guestamenities are some of the direct expenses to a room sale. Other variable expensesare the operating expenses. To a rooms division manager operating expenses willinclude:Salaries and wages:Salaries are those given to full-time employees whilewages are given to part-timers and temporary workers. Based on the companycompensation package salaries are supported by perquisites likeaccommodation, transportation, medical insurance. Leave salary, leave tickets,pension contributions etc. All these have to be built in this expense head. Thehuman resources department that administers payroll and related expensescan assist in giving accurate figures.Advertising and promotion expenses:While there are general advertisingexpenses for the entire hotel there are some exclusive to the sale of rooms.Corporate advertisement are apportioned to revenue centres while room centreadvertisement reflect directly in the budget. Promotions can be from budgetsfor entertainment for the promotion of business with business sources or the95 |P a g e

hotel can launch a special promotion during lean months to stimulate roomssales.Stationery and suppliesare those required for daily operations. Under this headare the printing expenses for forms and formats. It would include computeraccessories like CDs and printer ink.Transportation is an important expense head. Expenses are incurred on twocounts: one for oper- ating courtesy transport for guests and the other to pickemployees from their homes to be on duty.Energy costskeep increasing year by year. The engineering department is ableto apportion en- ergy costs to rooms and the front office.