Other Expenses in the Rooms Department include a variety of operational costs essential for maintaining guest accommodations and service quality. These expenses are structured based on the Uniform System of Accounts for the Lodging Industry (USALI).
1. Cleaning Supplies
Includes the cost of products used for cleansing, sweeping, polishing, waxing, and disinfecting areas associated with the Rooms department.
2. Cluster Services
Allocation for shared costs between hotels in a limited geographic area. Labor costs should be assigned to their respective line items when possible, and only non-labor expenses should be charged to Cluster Services.
3. Commissions
Covers remuneration paid to travel agents and authorized intermediaries for securing room business. This includes:
- Travel agent commissions, recorded under the Rooms department.
- Commissions to wholesalers, consolidators, and rental agents.
- Fees paid to third-party meeting planners.
4. Complimentary Services
4.1 Complimentary Food and Beverage
Includes the cost of gratis food and beverages, such as breakfast, evening receptions, and in-room coffee.
4.2 Complimentary In-Room/Media Entertainment
Covers expenses for in-room entertainment services provided at no additional cost to guests, excluding pay-per-view services.
4.3 Complimentary Services and Gifts
Includes VIP gifts, guestroom flowers, complimentary newspapers, and fruit baskets for frequent guests.
5. Contract Services
Expenses related to outsourced services such as professional carpet cleaning, pest control, and deep cleaning tasks.
6. Corporate Office Reimbursables
Includes allocations of salaries and expenses for corporate or management company personnel visiting the property for Rooms department operations.
7. Decorations
Covers costs for seasonal decorations and floral arrangements in public areas.
8. Dues and Subscriptions
Includes costs for professional memberships and industry-related publications.
9. Equipment Rental
Costs associated with renting equipment for occasional use within the Rooms department.
10. Guest Relocation
Covers costs incurred when accommodating guests at alternate properties due to overbooking or operational issues.
11. Guest Supplies
Includes consumable items provided to guests, such as toiletries, shoeshine mitts, shower caps, and writing materials.
12. Guest Transportation
Costs related to transporting guests, including shuttle services, vehicle rental, and fuel.
13. Laundry and Dry Cleaning
Includes in-house and outsourced laundry services for linens, towels, and staff uniforms.
14. Licenses and Permits
Expenses related to regulatory compliance and property inspections.
15. Linen
Covers costs for purchasing or renting towels, sheets, blankets, and guest robes.
16. Miscellaneous
Includes any other expenses not covered under the predefined line items.
17. Operating Supplies
Costs for non-guestroom supplies needed for Rooms department operations, such as alarm clocks, keycards, and ice buckets.
18. Postage and Overnight Delivery Charges
Covers expenses for mailing and express delivery related to the Rooms department.
19. Printing and Stationery
Costs for printed materials such as guest directories and in-room literature.
20. Reservations
Fees associated with participating in central reservation systems, online travel agency (OTA) commissions, and reservation-related telecommunication costs.
21. Royalty Fees
Costs incurred for using a brand name in connection with Rooms department operations.
22. Training
Expenses for staff training programs, certification courses, and related instructional materials.
23. Travel – Meals and Entertainment
Includes reimbursable costs for business meals and entertainment.
24. Travel – Other
Includes airfare, hotel stays, and conference registration fees for Rooms department employees on business trips.
25. Uniform Costs and Laundry
Costs for purchasing, renting, and maintaining employee uniforms, including dry cleaning expenses.
Calculating Total Other Expenses
Total Other Expenses is the sum of all the costs listed above. The percentage of each expense category is determined by dividing the expense by Total Rooms Revenue.
By accurately tracking and managing Other Expenses, hotel operators can enhance cost efficiency and maintain high service standards for guests while ensuring financial accountability within the Rooms department.
