Information and Telecommunications Systems — Schedule 6
The Information and Telecommunications Systems department plays a critical role in modern hotel operations. From managing guest Wi-Fi to maintaining backend property management software, this department ensures that communication and data systems run smoothly.
Schedule 6 outlines the appropriate format for reporting expenses related to Information and Telecommunications Systems, based on the Uniform System of Accounts for the Lodging Industry (USALI). While hotels may omit irrelevant line items or rearrange columns, additions or substitutions are not allowed. However, properties may include sub-accounts or sub-schedules for added detail.
Expense Categories Overview
Information and Telecommunications expenses are grouped into four major categories:
- Labor Costs and Related Expenses
- Cost of Services
- System Expenses
- Other Expenses
1. Labor Costs and Related Expenses
This category includes all payroll-related costs:
Salaries and Wages
- Regular, overtime, and differential pay for IT and telecom staff.
- Includes temporary staff when on payroll.
- Costs are assigned to the department where the work is performed.
Service Charge Distribution
- Allocated service charges paid to employees via the payroll system.
Contracted, Leased, and Outsourced Labor
- Gross cost of outsourced staff like PBX operators or IT technicians.
Bonuses and Incentives
- Performance-based bonuses designed to improve service or system reliability.
Payroll-Related Expenses
- Payroll Taxes: Employer contributions to national/state social programs.
- Supplemental Pay: Vacation, sick pay, and severance.
- Employee Benefits: Health insurance, pension, staff meals, etc.
Total Labor Costs = Sum of all above components, usually reported as a percentage of Total Operating Revenue.
2. Cost of Services
Expenses tied to providing telecom and Internet services to guests and staff:
- Cost of Cell Phones: Monthly plans and hardware.
- Cost of Internet Services: Admin and guest Wi-Fi access, related fees.
- Cost of Local and Long-Distance Calls: Includes trunk line charges and taxes.
- Other Costs: Any telecom-related expenses not captured above.
Total Cost of Services = Sum of above, reported as a % of Total Operating Revenue.
3. System Expenses
These are costs for software, hosting, and systems across departments:
- Admin & General: Accounting and security systems
- Centralized Info Systems: Corporate IT services
- Energy Management: Utility and HVAC systems
- Food & Beverage: POS and reservations systems
- Golf / Health Club / Spa / Parking: Venue-specific systems
- Hardware: Small-value non-capitalized IT equipment
- Human Resources: Payroll, HRIS, and time clock systems
- Information Security: PCI compliance, antivirus, firewalls
- Information Systems: Local/WAN networks and email
- Property Operation & Maintenance: Work order software
- Rooms: PMS and key coding
- Sales & Marketing: CRM and campaign platforms
- Telecommunications: Phone systems like VoIP
Total System Expenses = Sum of system-specific expenses, reported as % of Total Operating Revenue.
4. Other Expenses
General operating expenses related to IT and telecom:
- Cluster Services: Shared costs across multiple properties
- Contract Services: Outsourced data backups or IT support
- Corporate Office Reimbursables: Corporate IT staff and services
- Dues & Subscriptions: Trade memberships, software subscriptions
- Entertainment – In-House: F&B for internal meetings and vendors
- Equipment Rental: Temporary use of IT gear
- Miscellaneous: Unclassified IT expenses
- Operating Supplies: Office supplies used by the IT team
- Other Equipment: Non-capitalized gear
- System Storage & Optimization: Backup and cloud storage solutions
- Training: Certification programs, instructor costs (excluding payroll)
- Travel – Meals/Other: Business travel and meal reimbursements
- Uniform Costs and Laundry: Staff attire and cleaning
Total Other Expenses = Sum of all listed items, shown as a percentage of Total Operating Revenue.
Total Expenses Calculation
To determine total departmental cost:
Total Information and Telecommunications Systems Expenses =
- Total Labor Costs and Related Expenses
- Total Cost of Services
- Total System Expenses
- Total Other Expenses
This figure is reported under Undistributed Operating Expenses on the Summary Operating Statement.
By tracking these components carefully, hotels can manage one of their most crucial support departments with precision and accountability.
