Park Plaza Improves Profitability Reporting on Rooms
BOARD International is a software company that is working with hotel and spa companies to improve their Corporate Performance Management and deploy Business Intelligence. BOARD worked with Park Plaza on a project to improve their ability to report and analyse data efficiently.
What was the business need?
Park Plaza stores information needed for management reporting in different systems. Room reservations, food & beverage revenues and staff planning are stored in Opera, and consolidated financial data is held in SAP BPC. Abraham Thomas, Vice President Finance & Control Park Plaza: “SAP is fine for financial reporting, but it lacks the ease-of-use needed for management reporting”. Being listed on the stock exchange, Park Plaza is required to provide financial reports to shareholders and investors. Setting the right authorisations on this sensitive information to create management reports proved to be a challenge.
Park Plaza has two hotels in London that were financed in a special way: investors purchased rooms at the new Park Plaza Westminster Bridge hotel and the Park Plaza County Hall hotel. “We are required to inform room owners monthly about the profit and loss of their individual rooms. Their return on investment is based on the profitability of their rooms.” A. Thomas.
From a technology point of view, we proposed to use our CPM software solution. The Board toolkit enables rapid development of management reports and provides a seamless integration with SAP BPC and other information sources, like text files and Excel spreadsheets.”
Managers can view every aspect of their business using dashboards. They can analyse operational and personnel costs, cumulative or periodic revenues per market segment, and the actual or average room occupancy. By using colours in dashboards and charts, the score on key performance indicators is clear at a glance. This graphical presentation is based on the powerful Windows.netframework (Windows Presentation Foundation). Managers can benchmark their performance against the performance of other hotels and regions. Also, they can perform trend analyses. At the group level, they solution provides all the information that is needed to manage the performance of the group. And the London hotels can send out profit & loss accounts to their investors very easily, and even import the numbers into the bookkeeping system for further handling and payment.
The Business Gains
The solution is being used above average, compared to similar solutions of other vendors. “During the monthly management reviews, we now have the undisputed numbers available”, comments Derek Bock, controller at Park Plaza. “Also, Park Plaza management can create their own reports without much effort. In the future we intend to use Board for planning, budgeting and forecasting. One of the possible applications is to analyse what-if scenarios for room occupancy in relation to weather conditions, or whether to organise certain events for groups of guests. And at the group level we have all the figures available to support decisions about the purchase of new hotels.” Thomas summarises: “a solution that exceeds our expectations regarding ease-of-use and flexibility.”
“Our hotel chain needs detailed management information at the international, regional and hotel level. Cpmview developed a solution that is easy to use, very complete and simple to maintain.” Abraham Thomas Vice President Finance & Control Park Plaza Hotels
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