Financial Management in Hotel Industry: The Best Practice
Kazi Nazrul University, Asansol, West Bengal, India
An overview of the hospitality industry along with the requirement of managing finance has been evident. The scope and significance of the study has pointed out the areas that could benefit from its findings.
The necessity of having a finance management department in the hospitality industry has been reviewed. Followed by that, the best practices of finance management that are currently in use have been pointed out along with the challenges they might involve. The agency theory has been used to analyse the specific responsibility of the finance management department. The literature gap has pointed out the drawbacks in the existing literature.
The chosen methodology paradigms for the study are Interpretivism philosophy, inductive approach, descriptive design, secondary data collection method and qqualitative data analysis. Google scholar, Proquest and Cochrane Library have been used for collecting the articles based on the inclusion and exclusion criteria provided.
Hotel managers have been involved in prioritizing macro-environmental and competition analysis conditions as compared to engaging with internal characteristics which include “teamwork in strategy formulation”. Data analytics and business intelligence have largely impacted the hotel industry's business performance.
The financial decision helps in mitigating the risk that increases financial volatility. Financial behaviour within the hotel industry “changes over time” which helps in determines the employment and the economy that drives financial performance behaviour.
Conclusion and Recommendation
Data analytics and business intelligence have largely impacted the hotel industry's business performance. Hence, it can be recommended to timely acknowledge the hotel industry and government stakeholders to cope with the financial crisis.
Keywords: Finance management, hotel industry, budgetary planning, management and forecasting