Upgrading of the model to determine the economic and financial feasibility of a hotel

Abstract

This work project encompasses the upgrading of an already existing model to determine a hotel´s economic and financial feasibility, by adding some figures that give more information to the hotel managers and, therefore, can guide them in their strategic decisions. This upgrading was conducted to adapt the model to the changes that are going on in the hospitality industry such as, the growing importance of digital technology, that is changing the balance of power towards the consumer side and the change in the consumer behaviours and expectations since the new generations value more the local experiences and plan their trips using online sources. The model will be based in the principles of the Uniform System of Accounts to the Lodging Industry (USALI), published by the American Hotel Lodging Educational Institute. The first edition was published in 1926 with the objective of enable the hotels to recording, classifying and publishing the hotel´s internal results in a format that is equal among all hotels in the world. This will allow the results to be compared worldwide and, also, contribute to the creation of reliable indicators in the industry, crucial for all players in this market. USALI was the first successful accounting system and, nowadays, is the most accepted worldwide.