A- Revenue management is an important tool for hospitality managers, because it is the best strategy to increase room revenue and profit, its process is based on increasing the revenue by controlling the room sales, in another meaning, selling the right room to the right person at the right time for the right price. Revenue management provides the ability to forecast demand and control room availability and length of stay. Also includes strategies on controlling the labor, food and beverage and all expenses in order to meet the budget and make the profit.
RevPAR or Revenue Per Available Room is a better measure of hotel's effectiveness than RevPOR (Revenue Per Occupied Room), because it is a function of both room rates and occupancy, it is also an important measurement of performance among hotel operators. Total RevPAR is the product of the occupancy and total RevPOR. When the RevPAR increases it means either the occupancy is improving or room rates are rising or both.
B- Capitalizing current operating expenses on the financial statements, could be considered fraudulent, if you don't capitalize the right asset. If you capitalize current operating expense you will show a reduction in expenses, which will inflate the appearance of your net profit. It is important to capitalize a current operating expense to show in your financial statements the monthly expense.
C- Profit flexing is basically a strategy that the hospitality manager uses when the revenue for the month fall behind the budget, so in order to reduce the expenses without any influence on the customer service. Before using this tool the manager should have all detailed expenses of the hotel, and all reports, to find the issues on the financial statements and find ways to reduce the expenses and increase the profit. It also help the manager on coming up with new methods of work, or develop the duties of the