Title: Analyze how department revenues and expenses affect the lodging's profit margin.
Course: Lodging Management (12159) > Section: Performing Financial Functions

Analysis should include describing the lodging's major departments and summarizing the role each plays in profitability.

Process/Skill Questions:

- How is a profit margin calculated?
- What is the average gross profit margin for a hotel?
- What are sources of revenue for hotels?
- How does each department's profitability affect the lodging's overall profit margin?
- Why are budgets created for each department?
- What actions are normally taken to correct or improve the financial operations of a department or property?
- How can a hotel maintain profitability through tough economic times?