Youtube Video

Summary published at 10/20/2024

🏨 Bruce Jordan, the Michael Jordan of hotels, discusses the importance of income audits to protect hotel revenue.

💰 Income audits are essential to ensure that revenue is accurately tracked and to prevent losses due to mistakes or theft.

📊 Bruce has managed over $1 billion in assets and $300 million in revenue, making him a credible source in the hospitality industry.

🔍 Key reports to review during an income audit include:

  • Guest Ledger
  • Advanced Deposits
  • Credit Checklist
  • Hotel Transaction Journal
  • No-Show Report
  • Rate Variance Report
  • Cash Transactions
  • Top Guests

🚨 The main reasons for conducting revenue audits are:

  1. Theft - Employees may steal cash or manipulate transactions.
  2. Errors - Front desk mistakes can lead to misstatements in revenue.

📋 The Guest Ledger shows current guests, their balances, and any outstanding charges that need to be posted.

💳 The Advanced Deposit Ledger tracks payments made in advance for rooms or events, ensuring they are recorded correctly once services are rendered.

📝 The Credit Checklist monitors credit card authorizations to ensure sufficient funds are available for guest charges.

📅 The Hotel Journal Detail provides a daily summary of all transactions, helping to identify any duplicate charges or errors.

❌ The No-Show Report tracks guests who fail to arrive, ensuring that revenue is recorded for guaranteed reservations.

📉 The Rate Variance Report identifies unauthorized rate adjustments made by front desk staff, which can lead to significant revenue loss.

💵 Implementing a strong cash handling policy is crucial to prevent theft and ensure accurate cash transactions.

🌟 Finally, maintaining relationships with top guests is vital for ongoing revenue, as these guests contribute significantly to hotel income.

🙌 Thank you for joining this session on income audits. For any questions, feel free to reach out!

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