Contents -- Preface to the third edition -- 1 Revisiting hospitality and tourism operations: fresh insights -- Understand your business and you understand accounting -- Hospitality operations -- Tourism attraction operations -- Features of hospitality and tourism business operations -- 2 Review of hospitality and tourism financial statements -- Profit and loss statements -- Service industry profit and loss statements -- Hotel profit and loss statements -- Hotel profit and loss statement (extended) -- Restaurant profit and loss statements -- Visitor attraction profit and loss statements -- Balance sheets -- Cash flow statements -- 3 Understanding results using ratios -- Understanding and using ratios -- Ratio analysis: a hotel example -- Liquidity ratios -- Debt management ratios -- Asset management ratios -- Profitability ratios -- 4 Comparing and benchmarking performance -- Bases for comparing operating results -- Comparing past (or budgeted) results -- Comparative commonsize analysis of results (percentage of revenue basis) -- Comparing intra-company results -- Inter-firm comparison (benchmark reports) -- Averages used in industry surveys -- 5 Practical cost behaviour for decisions:dropping a stone into water -- Developing profitable business -- Creating a profit planning framework -- Dropping a stone into water -- Practical analysis of cost behaviour -- Fixed and variable revenue -- Classifying revenue and expenses -- CVP - cost-volume-profit - worksheet -- Marginal profit and loss statement -- 6 Break-even, profit and loss scenarios -- Using cost behaviour for CVP analysis -- CVP basic calculations: restaurant -- CVP (break-even) graph: restaurant -- CVP analysis for decisions: café & bakery -- CVP analysis: hotels -- Hotel quick and dirty calculations -- CVP analysis for transactions: tourist attraction.

Engaging with practical CVP techniques -- 7 Cost structure -- Using CVP analysis to understand our business -- Cost structure -- Cost structure and business orientation -- Industry cost structures -- Hotel property cost structures -- Hotel department cost structures -- Hotel property cost structure limited service -- Cost structure and business decision making -- Connecting cost structure with decision making -- 8 Flexible budgets for planning and control -- Using CVP analysis for routine planning and control -- Budgets for planning -- Preparing a flexible budget -- Budgets for control -- Flexible budget variance analysis -- Budgets for control (business mix) -- Flexible budget variance analysis -- Applying flexible budget techniques -- 9 Profit multiplier profile -- Using CVP analysis to improve profit -- What influences (multiplies) profit -- Key factors affecting profit -- Profit multiplier profile -- Profit sensitivity analysis: visitor attraction -- Profit sensitivity analysis results -- Market and product orientated businesses -- Framework for profit improvement -- 10 Pricing hospitality products and services -- Cost-plus pricing -- Full cost-plus pricing: hotel average room rate -- Direct cost-plus pricing: visitor attraction event -- Gross margin pricing: restaurant average spend -- Developing an overall pricing policy -- Mark-up and profit -- 11 Budgets and forecasting -- Budgets -- The budgeting process -- Budget preparation process -- Final budget and review process -- Forecasting -- 12 Developing customer profit analysis -- What is customer profitability analysis? -- Customer profitability analysis and revenue (yield) management -- Understanding activity-based costing -- 13 Getting the information we need -- Why do we need financial information? -- What is information? -- Foundation for an information system.

Critical success factors approach -- Changing information needs -- 14 Capital expenditure decisions -- Discounted cash flow (DCF) -- DCF: Net present value (NPV) method -- DCF: Internal rate of return (IRR) method -- Net present value versus internal rate of return -- Cost of capital -- 15 Using computer spreadsheets -- A brief review of the spreadsheet -- Creating a simple financial model -- Designing a spreadsheet -- Spreadsheet design: an example -- Spreadsheet graphics -- 'What if'? analysis tools -- Spreadsheet applications -- Preface to the third edition -- 1 Revisiting hospitality and tourism operations: fresh insights -- Understand your business and you understand accounting -- Hospitality operations -- Tourism attraction operations -- Features of hospitality and tourism business operations -- Connecting accounting into business decisions -- 2 Review of hospitality and tourism financial statements -- Profit and loss statements -- Service industry profit and loss statements -- Hotel profit and loss statements -- Hotel profit and loss statement (extended) -- Restaurant profit and loss statements -- Visitor attraction profit and loss statements -- Balance sheets -- Cash flow statements -- 3 Understanding results using ratios -- Understanding and using ratios -- Ratio analysis: a hotel example -- Liquidity ratios -- Debt management ratios -- Asset management ratios -- Profitability ratios -- Operating ratios -- Interpreting results -- Relevance of ratios -- 4 Comparing and benchmarking performance -- Bases for comparing operating results -- Comparing past (or budgeted) results -- Comparative common-size analysis of results (percentage of revenue basis) -- Comparing intra-company results -- Inter-firm comparison (benchmark reports) -- Averages used in industry surveys.

5 Practical cost behaviour for decisions:dropping a stone into water -- Developing profitable business -- Creating a profit planning framework -- 'Dropping a stone into water' -- Practical analysis of cost behaviour -- Classifying revenue and expenses -- Marginal profit and loss statement -- 6 Break-even, profit and loss scenarios -- Using cost behaviour for CVP analysis -- CVP basic calculations: restaurant -- CVP (break-even) graph: restaurant -- CVP analysis for decisions: café and bakery -- CVP analysis: hotels -- Hotel quick & dirty calculations -- CVP analysis for transactions: tourist attraction -- Engaging with practical CVP techniques -- 7 Cost structure -- Using CVP analysis to understand our business -- Cost structure -- Cost structure and business orientation -- Industry cost structures -- Hotel property cost structures -- Hotel department cost structures -- Hotel property cost structure: limited service -- Cost structure and business decision making -- Connecting cost structure with decision making -- 8 Flexible budgets for planning and control -- Using CVP analysis for routine planning and control -- Budgets for planning -- Preparing a flexible budget -- Budgets for control -- Budgets for control (business mix) -- Applying flexible budget techniques -- 9 Profit multiplier profile -- Using CVP analysis to improve profit -- What influences (multiplies) profit -- Key factors affecting profit -- Profit multiplier profile -- Profit sensitivity analysis: visitor attraction -- Profit sensitivity analysis results -- Market and product orientated businesses -- Framework for profit improvement -- 10 Pricing in hospitality and tourism -- Cost-plus pricing -- Full cost-plus pricing: hotel average room rate -- Direct cost-plus pricing: visitor attraction event -- Gross margin pricing: restaurant average spend -- Going rate pricing.

Contribution margin pricing -- Cost structure and pricing decisions -- Developing an overall pricing policy -- Mark-up and profit -- 11 Budgets and forecasting -- Budgets -- The budgeting process -- Budget preparation process -- Final budget and review process -- Forecasting -- 12 Developing customer profitability analysis -- What is customer profitability analysis? -- Customer profitability analysis and revenue (yield) management -- Understanding activity-based costing -- Hotel customer profitability analysis: an example -- Customer profitability profile -- 13 Getting the information we need -- Why do we need financial information? -- What is information? -- Foundation for an information system -- Critical success factors approach -- Changing information needs -- Balanced scorecard -- Using information to support decision making -- 14 Capital expenditure decisions -- Discounted cash flow (DCF) -- DCF: Net present value (NPV) method -- DCF: Internal rate of return (IRR) method -- Net present value versus internal rate of return -- Cost of capital -- 15 Using computer spreadsheets -- A brief review of the spreadsheet -- Creating a simple financial model -- Designing a spreadsheet -- Spreadsheet graphics -- 'What if?' analysis tools -- Spreadsheet applications.