Which divisions are the most profitable: room rentals, food and beverages or the party services?
If you look at a hotel as a whole unit, those service areas are all connected to each other. Rooms are generally the most profitable area. The bottom line is that when managing, I don’t look at only the profit margin. I look at revenue and profit flow through. The profit is an outcome of all department efforts and specific skilled functions in a hotel. In central Tokyo, several foreign luxury hotels have opened over the last few years. How is their arrival changing the market? They are wonderful hotels actually. The hotel market in Tokyo and other cities is very, very big and thus all of these new hotels will bring a lift of expectation to guests, associates and owners. Your success is determined mostly by the customer and their decision to stay with you and they tend to make a decision based on a number of factors, such as the location they would like to travel to, the brand they identify most with, services they have come to expect, often their budget and initial purpose of travel. A
