University of Brighton School of Service Management MA Tourism Management

Group Case Study on The Tides Reach Hotel

Diana PIKOVSKAJA, Aditya Joshi , Kazuna, Andi, Todor

SSM15 -Service Managing Service Operations Module Leader: Chris Dutton

January 19, 2010

Table of Contents

Group Case Study on The Tides Reach Hotel.................................................1 Module Leader: Chris Dutton.........................................................................1 Table of Contents.........................................................................................3 .................................................................................................................... 4 Introduction..................................................................................................5 Current financial and Market position of the Tides Reach Hotel...................5 Hotel...................................................................................................................... 8 Season................................................................................................................... 8 An outline of new products, services and packages for The Tides Reach Hotel & Leisure Complex .............................................................................9 Budget Proposal for the year to June 2010.................................................16 Appendix A.................................................................................................24 Appendix B.................................................................................................26 Reference...................................................................................................27 Brassington, F. and Pettitt. S. (2003). Principles of Marketing, Third Ed., London: FT Prentice Hall......................................................................................27 Phillips, P. (1994). Welsh Hotel: Cost-Volume-Profit Analysis and Uncertainty, Vol. 6, No. 3, pp. 31-36........................................................................................27 Victoria Inn (2009). [Online] Dining at the Victoria Inn Available at: http://www.victoriainn-salcombe.co.uk/?page_id=13[accessed on 07.01.2010]. ......................................................................................................................... 27

IntroductionThis report is prepared for the owners of Tides Reach Hotel to advise them on the current financial situation of their hotel as well as outline the implications and possibilities brought by the acquisition of the leisure complex. Also, the proposals for sales improvement and profitability are being made.

Current financial and Market position of the Tides Reach HotelFirst, the report analyses and evaluates current financial and market position of the Tides Reach Hotel.

Financial PerformanceProfitability The return on capital employed (ROCE) of the Tides Reach Hotel as calculated for the year 2009 is 6.99%. This ratio is useful for assessing the profitability through the comparison of generated return with the investment. The ratio shows that for every 1 invested the hotel earns 6.99p. To understand whether the capital is being used efficiently to generate revenue it is useful to compare ROCE among the competitors of the business. As can be seen from Table 1 ROCE of Tides Reach Hotel is much lower than that of its competitors. Thus, it can be said that one of the weaknesses of the hotel is not using its capital efficiently. By overcoming this problem the owners could increase profitability of their business.

Table 1Tides Reach Hotel ROCE Net Profit Asset Utilization 6.99% 3.70% 1.87 times Intercontinental Hotels Group 15.00% 16% 0.9 times Accor 14% 11% 1.29 times

Liquidity Liquidity refers to businesses ability to pay off its current liabilities and is therefore closely connected to working capital management. The Tides Reach Hotel has a positive working capital of 5690 which shows the short-term financial health and solvency of the business due to its ability to pay off its shortterm liabilities. However, the current ratio of the hotel is quite low (1.18:1) indicating that the margin of safety that hotel has to cover its short-term liabilities is low. The Tides Reach Hotel is running a risk of becoming insolvent unless it improves its efficiency through increasing its current assets, decreasing current liabilities or both. Moreover, the more strenuous liquidity test acid test ratio (0.7:1) shows that Tides Reach Hotel does not possess enough current assets to cover its current liabilities without selling the stock. Capital Structure

Capital structure of the business consists from various sources of funding used to finance the company. The Tides Reach Hotel is financed by the combination of owners investment (equity) and loan (debt). To measure the proportion of funding capital gearing is used. As noted by Adams (2006:185) loan financing in practice tends to be cheaper than equity, but loan funding exposes the shareholders to greater risk through the obligation to pay interest and the possibility of changing rates. The capital employed by the Tides Reach Hotel is 615,690 financed by 417,770 (66%) equity and 197,920 (34%) debt. This indicates that owners investment is the dominant form of finance providing them with the advantage of retaining higher share of profit due to the lower amount of interest needed to be paid to the debtors. However, there is a concern associated with the new acquisition as this will change capital structure raising debt of the hotel to 40%. This is predicted to diminish hotels profit as well as restrict further development opportunities due to the lacking financing. CVP analysis To assess viability of the business in short-term cost-volume-profit analysis was carried out. It is widely recognized that hotels tend to have a high level of fixed cost (Phillips, 1994:31). This can be of a benefit when the hotel is full as the profit rises significantly after the breakeven is reached, however, in the low season the revenue drops considerably and losses can occur. As can be seen from Table 2 accommodation operation of the Tides Reach Hotel has the highest proportion of fixed cost in comparison to the food and beverage operation. However, it also generates the highest contribution towards its fixed costs and profit. The high contribution towards fixed costs as well as minimal variable costs helps operation to overcome the problem of profit instability associated with the high percentage of fixed costs. Furthermore, accommodation operation has the highest margin of safety (76%) indicating a high degree of profit stability. To further improve the profitability of the operation further reduction of fixed costs is suggested. While the food operation makes the lowest contribution towards its fixed costs it generates the highest profit among all of the hotels operations due to the high volume of units sold. However, the lowest margin of safety makes the operation most vulnerable to the drop of sales activity. The comparison with the local hotels showed that Tides Reach hotel is charging too high prices for its dinner menus. Slight price reduction is suggested to increase the volume of sales and generate more profit. While beverage operation has relatively high margin of safety and low proportion of fixed costs it could benefit from a slight price reduction towards the increase of sales volume.

It is expected that the new acquisition of the leisure complex will attract more visitors to the hotel in the coming year and thus boost sales in all operational department. Table 2 Sales Mix Units Sold Contribution Breakeven Margin of Safety Safest Option Profit Fixed Cost : Var. Cost Accommodation 22% 5790 35.2 (86%) 1364 76% 21% 157565 60 : 40 Food 55% 38680 9.7 (58%) 21185 45% 54% 169706 43 : 57 Beverage 23% 30560 5.1 (60%) 10852 64% 24% 100511 35 : 65

CompetitivenessThe Tides Reach Hotel does not seem to be competitive when compared with the similar hotels in the area as well as local hotels. Despite charging lower room prices the hotel struggles with the occupancy rates especially in the low season. Being a 4 crown hotel it has lower room rates than some of the 3 crown hotels in the area. Such a low pricing may make people question the quality of the hotel thus spoiling its image and detracting customers from coming there. Hence it is suggested for the hotel to rethink its pricing strategy especially in the light of new acquisition which will add even more value to it. Besides, the attractive location and easy accessibility both add value to the hotel which can be reflected in its pricing. Table 3

HotelHighTides Reach Hotel (4 crown) Rate () Occupancy Rate % 4 crown hotels in the area Average Rate () Aver. Occupancy Rate % 3 crown hotels in the area Average Rate () Aver. Occupancy Rate %

SeasonShoulder Low

55 82

42 55

32 35

68.50 89

54.50 74

43.50 51

55.50 92

45.50 68

36.50 46

Low occupancy rate at the hotel that is situated is such a good location also calls to rethink the marketing structure and product offer of the hotel. Since the hotel is close to the airport and it has the potential to develop conference room it should try to attract more business customers and conferences. This market is especially attractive as it is not affected by seasonal fluctuations.

An outline of new products, services and packages for The Tides Reach Hotel & Leisure ComplexAs noted by Harris (1994:88) the majority of products and services produced and sold in the hotel () are derived from the provision of rooms, food and beverages. At the moment, accommodation is generating biggest departmental profit for the hotel. However, relatively low occupancy rate combined with the high fixed and low variable cost indicate that the profit of this operation could be increased even further through attracting more customers and generating higher revenue. Before looking at the new market is it worth trying to develop the already existing market. According to the statistics the Tides Reach Hotel relies mainly on tourist market, as tourists represent 71% of all guests. The further rise in average disposable income in 2008 resulted in a higher level of consumer spending in the economy as a whole and leisure sector in particular (KeyNote, 2009). Although tourism and hospitality industry has suffered considerable losses brought by recession referring to Marvin Rust, Hospitality Managing Partner at Deloitte Caterersearch.com KeyNote (2009) state that both weekend leisure demand () and corporate weekday demand () has shown an upward trend, signalling that the worst may be over for hoteliers. Short breaks and second holidays are becoming a stronger trend. Furthermore, short-break market has made the hotel a potential destination in itself, which may be chosen for facilities such as restaurants, spas or the quality of the accommodation (Keynote, 2009). Thus, with the value added to the hotel by the newly acquired leisure centre the Tides Reach Hotel has very good chances of further expansion of the tourist market. This will be stimulated through the offer of attractive packages of accommodation, food and leisure facilities. Business customers account to 25% and conference market to only 4% of the guest mix. As noted in Keynote (2009) corporate travel is of particular importance to hotels as businesses can be targeted with higher rates for accommodation due to the fact that they are generally more fixed in their requirements with regards to destinations and dates than the consumer sector. Besides, businesses are central users of additional facilities such as meeting, conference and function rooms as well as food and drink offered by the hotel. Finally, in contrast to holiday-makers business customers are not affected by seasonality which is very important for the hotel especially in the low season (KeyNote, 2009). Thus and taking in to account that the Tides Reach hotel has the necessary facilities - function room and smaller meeting room can welcome up to 72 guests overall - it is strongly advised to further develop this market. This could be done by offering activities such as team building events in the hotel. Again, the leisure centre makes the hotel more attractive for such events by offering additional facilities and thus more choice of activities. Discounted rates for longer stay can be introduced to encourage business clients to stay overnight.

The newly acquired leisure centre combined with the beautiful countryside location of the hotel and its function room offers a numerous possibilities for new product development. One of the suggestions is to market hotel for the celebration of honeymoons and other special occasions. This will contribute to dealing with the problem of seasonality of the hotel and attract new market to the hotel. Furthermore, to generate more revenue the new leisure centre should be opened and marketed to local market. The research of the area showed that there is no similar leisure complex in the area. Thus, having a wide range of facilities on offer the leisure complex is expected to enjoy popularity among local population. Annual and monthly membership discounts can be introduced to attract and keep people. Opening of the leisure centre to the wider public is also expected to contribute to the revenue of the restaurant as customers of the leisure centre might choose to use hotels bar and restaurant. It must be noted that food and beverage department of the hotel will benefit from all of the proposed changes and market expansions of the accommodation operation as it will be more convenient for most people staying in the hotel to use the provided facilities. However, designing attractive product is not enough. Effective means of communication of the products to the target market have to be developed. Given the fact that target market of the hotel is spread over a wide geographical location not only on national but also international level the Tides Reach hotel will benefit from the use of internet as a mean to communicate and sell its products to their potential audience (Brassington and Pettitt., 2003). Since the introduction of Internet to the world in 1991 and rapid expansion of its users the website has become a marketing tool of varying purposes and importance in most traditional commercial companies (Brassington and Pettitt., 2003:1055). According to Starkov and Price (2007) a third of all hotel bookings are generated from the internet and another third is influenced by it. lThe attractiveness of the internet as a marketing tool is brought not only by its potential to reach wide audience at a very low cost, but also, as noted in Marketing Trends Survey (2006) it has allowed businesses to respond more quickly and efficiently to customer needs, and become more solutions oriented. Thus, it is expected that establishment of a website will increase revenue as well as boost profit. Finally, the role of social media should not be underestimated. There are 65 million people, who are accessing Facebook through mobile devices. The same applies for MySpace and Twitter. These are important examples because they can provide the opportunity to win over more customers. A wise decision is a mobile-specific strategy to be adopted in order to increase the accommodation revenue.

Pricing Strategy for The Tides Reach Hotel & Leisure ComplexNew accommodation rates Table 4 Low 3 Crown Hotels Average Occupancy Average Rate 46% 36.50 68% 45.50 92% 55.50 Shoulder High

4 Crown Hotels Average Occupancy Average Rate 51% 43.50 74% 54.50 89% 68.50

Tides Reach Hotel Occupancy Rate 35% 32 55% 42 82% 55

Pricing is one of the main marketing tools. The current pricing strategy of the Tides Reach Hotel is based on seasonal pricing. This is a common pricing strategy used by the hotels to deal with the seasonal fluctuations in the demand. It is aimed at maximizing contribution to profits during high season through price increase and stimulates demand at low season by dropping the prices. As already noted, the Tides Reach Hotel is not using the strategy efficiently as it fails to maximise its profits in the periods of high demand as well as it does not stimulate enough demand during the low demand periods. This becomes particularly obvious when comparing the occupancy rate and prices of the hotel with the similar hotels in the area (see Table 4). The review of the similar hotels in the area also shows that customers are prepared to pay higher prices than those that Tides Reach hotel is currently charging. Reflecting general seasonality of demand in the area it is suggested to leave seasonal pricing as a strategy. However, the following changes are proposed: increase prices charged in each season set different prices for the mid-week and weekend to address lower demand in the mid-week

-

offer lower prices for those staying 7 nights and more to encourage longer stay

The suggested prices can be found in Table 5. Table 5 The Tides Reach Hotel Shoulder Low Season Season 42 32

High Season Current Rates Suggested Rates Sun-Thurs/7 nights and more Fri, Sat 70 55

58

47

90

70

60

The suggested rates are based on the review of the rates charged by competitors and are set slightly above the the average rate charged by the 4 crown hotels in the area. The reasons for this decision are as follows: attractive location ease of accessibility new acquisition seen as added-value due to the extended choice of leisure facilities and entertainment in the area slightly higher rates of accommodation alone are expected to encourage customers to purcase package deals outlined below which will contribute to the sales in all operational departments the suggested rates are the highest rates that will be charged in the coming year and may be reduced subject to the tactical pricing decisions.

-

The hotel will profit from the use of some pricing tactics. Further price segmentation is suggested to deal with the various problems attributable to the hotel industry. As newly acquired leisure complex has the potential of attracting more families to spend their holidays here it can be of advantage to introduce offer discounted rates for families with children of up to 16 years old. 30% discount is suggested

as it will make the hotel more attractive for families and still enable it to generate profit. It is further recommended to offer 15% group discount for the groups of 10 and more people to increase the occupancy rate of the hotel. Also, offering 25% discount to the corporate travellers will help to attract business travellers. Expansion in this market means the reduction of seasonal fluctuations. Besides, while looking attractive to the potential customers 25% discount will still generate higher profit than hotel is taking at the moment. New food and beverage pricing structure As noted above restaurant of the hotel will be opened not only for hotel guests but also for local residents and other extern guests. Thus, the development of two different rates for hotel guest and external visitors could benefit the hotel to reflect different pricing of the hotels and restaurant menus. The review of local restaurants showed that menu pricing of the Tides Reach Hotel is set in line with the other restaurants in the area. The hotel is charging average prices in the area which while contributing to the fixed costs and profit gives the hotel competitive advantage due to its good reputation for French cuisine and will attract local population. It is thus suggested to keep the existing prices for the external guest. Table 6 Average menu price Victoria Inn Burton Farmhouse Tides Reach Hotel 19.50 23.95 19.70

However, the comparison with local hotels showed that Tides Reach Hotel is charging considerably higher prices for its dinner menu than its competitors (see Table 7). Being a 4 crown hotel its diner menu rates even exceed those of a 5 crown hotel. It is thus advised to reduce prices for the hotel guests to make the hotel as a whole and dining in its restaurant in particular more attractive for its guests. As analysed above, currently, the contribution in food operation is 9.7. Hence, the average price can be reduced by up to 9.7 without restaurant starting to make a loss. Table 7 Dinner Price New Forest Hotel (4 crown) Southern Way Hotel (4 crown) Marriott (5 crown) 12.50 15.50 19.50

Tides Reach Hotel (4 crown)

21.80 (average price of three dinner menus offered)

It is suggested to reduce the average price of the dinner menu to 15. This means that contribution towards fixed costs will still be maintained. Furthermore, it is expected that such price reduction will considerably increase customers number and generate higher revenue. It is not advised to lower price even more as the good reputation of the restaurant can be adversely affected by the too low set prices. As for beverage department, it was suggested to have wider verities of choice of drink. And according to Appendix 1 costumer are spending 1/3 on their drinks of what they pay for their meal, therefore the price of drinks should be in the range of 3 to 10. Leisure club pricing policy As already discussed the leisure centre is fully equipped and in order to maximise its functionality it should be operated as a standalone leisure club as well as an attachment to the hotel. Therefore, as with the restaurant, two set of pricing policy is recommended. For standalone yearly membership needs to be introduced in the addition to the day rates to attract local customers. The review of local leisure clubs showed that customers base for leisure clubs are price sensitive as the number of members declines with the increase of subscription fee. Therefore a lower yearly subscription fee could attract more members, which will eventually produce more income for the hotel. Still the price should not be too low to comply with the overall image of the hotel and its restaurant. The suggested rates for Tides Reach hotel are identified in Table 8. Table 8 Members South Coast Leisure Club Ringwood Sports Club Drews Leisure Club Health & Fitness Centre Tides Reach Hotel (as suggested) 250 400 450 550 530 (predicted) Year Subscription 475 360 330 295 315 Day Rate 35.00 19.50 17.50 14.50 17.00

It is predicted that leisure centre will attract more customers due to its relatively low prices and excellent value that customers will get for this price. The Tides

Reach leisure centre is not just a fitness centre but due to its multiple facilities it is a wonderful destination for a day out for the whole family. Furthermore, the centre will benefit by offering corporate deals for local business. Offering 25% discount for corporate memberships is predicted to considerably boost members number. For the Tides Reach hotel customers the price of using leisure centre is suggested to be set at 10. While making the hotel more attractive for the potential customers it will help to generate additional revenue from hotel visitors staying for a short period of time. The package deals will be designed for holiday makers staying 7 days and more.

Packages of Accommodation and Food, Leisure With the economical down turn, more and more people are willing to stay in the country for holiday rather than to go aboard. This trend produces an opportunity for Tides Reach to be marketed as a resort hotel on the nice south coast. To make people stay in the hotel for a long period of time as well as use hotels owned restaurant and leisure facilities the package deal has been designed. The price calculated is based on the assumption that two people will be staying in the room. A fee of 15 a day will be asked for any additional person staying in the room. The package deal outlined in Table 9 includes the room, breakfast, lunch and dinner as well as the unlimited use of leisure centre facilities. Table 9 The Tides Reach Hotel Shoulder Low Season Season

High Season The Package Deal Rates as calculated for the product Suggested Rates for the Package Deal 117.50

105.5

94.50

95

77

65

Budget Proposal for the year to June 2010Budget Budget is the well analyzed approximated evaluation of all the incomes and the expenses of the property on a whole wherein the liabilities would include the depreciation on the fixed assets, building maintenance costs, salaries and wages of the staff, sundry charges; the assets would include the departmental incomes as well as any other incomes a property could have in order to evaluate the profit or loss for the property on a whole for the specific period of time. As some of the authors say A budget is a financial document used to project future income and expenses. [Budget :January,2009(online)]. Proposal Proposal may be said to be a presentation which maybe formal or informal. As the business dictionary clearly defines Proposal as a Solicited or unsolicited submission by one party to supply (or buy) certain goods or services to (or from) another.[Proposal: January 2009(online)] Therefore it could be concluded that the presentation of budget could be referred to as a budget proposal which may or may not be approved. Departmental Operating Statements Departmental Operating budgets are basically the budgets of the specific department and do not include the fixed assets. Business Dictionary defines operating budget as a Detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period (usually one year). Having defined the basic concepts in the question we would try to analyze the sales forecasts for accommodation: Taking the figures from page number 6 Table 4 we could see the average increase in the price for high season we have proposed is 25. Taking the percentage increase in the accommodation rates into account we could see that there is a 45% increase in the proposed accommodation rate. Considering the 45% increase in accommodation rates for the high season we assume to have the sales of accommodation in high season to be 4% that is sales would increase from 1845 for the high season to 1918. This shows that the occupancy percentage would increase from 82% to 85%. The 4% increase in the sales is concluded taking into account the response of the guests to the steep increase in the prices. While in the shoulder season the average price proposed is 64 which shows 22 increase that is 52% increase in price. Taking into account the ratio of price:sales ratio in high season we could see the increase of 5.46% in the sales of shoulder

season from 2475 to 2610 which would show an increase in occupancy percentage of 55% to 58%.

As in the Low Season the average price proposed is 53.5 which shows a 21.5 increase that is 67% increase in price. Taking into account the ratio of price:sales ratio in the seasons before we assume to have 6.09% increase in the sales of the low season that is 1470 to 1559 that shows the increase of occupancy percentage to be 37.11% Therefore the sales for high, shoulder and low season would be 153440, 167040, 83406.5 = 403886 Taking Food and Beverage Departments into account, the covers sold would have a radial increase of 4% by average as the accommodation sales have increased therefore

Lunch Functions

Dinner

Covers Sold Assumption and Price 19.5 28.5

A- 3794 9.5 B- 4571 13.5 C- NA D- NA

5093 - 10 6189 18.5 5841 28.5 NA

1456 - 9 5841 - 14 1034 608

Keeping the Breakfast rates same we assume the covers for breakfast to be sold = 8445

That is the sales for breakfast would be 50670 According to the above table the sales for Food Department on a whole would be 36043+61708+ 50930+114496+166468+13104+81774+20163+17328 that is 612684.

The average food cost is 6.92 per cover. Therefore the predicted food cost for the year 2010 would be 296674 Taking the Beverage Department into account since the profit margin is low therefore the prices have been kept the same but since the number of covers sold would increase 31782 covers would be sold taking a average 4% increase. Therefore the sales for the beverage department would be 35826+117787+ 35167= 188780 Keeping the bars revenue unchanged because of lack of information the total sales for beverage department would be 267510

Departmental Operating Budget For the Year Ending June 2010

Accommodation

Sales Other Revenue Direct Labour Costs Direct Operating Costs

403886 15350 49420 33130 82550 419236

Departmental ______________________________________________________ Operating Profit 336686

Food

Sales Food Cost Direct Labour Cost Direct Operating Cost ________________ Departmental Operating Profit 104533 296674 193331 18146

612684

508151

Beverage Sales Beverage Cost Direct Labour Cost Direct Operating Cost Departmental Operating Profit 102064

267510

108509 50042 6895 165446

Total Departmental Operating Profits 543283

Less Indirect Expenses Salaries and Wages Fuel Cleaning and Maintainance Business Rates Administration Expenses Business Expenses Advertising & Promotion Motor Expenses Miscellaneous Expenses Depreciation 305821 35000 14070 25787 17412 8322 3982 106312 25766 32670 36500

Hotel Operating Profit 237462 Before Interest

Less Interest 14400

Net Profit 223062

Narration: Salaries and Wages taken for the months starting October to June

Fuel Charges 50% paid in January Business Rates: 50% paid in January

Budgeted Proposal for the year 2010 uptil June.

Fixed Assets New Value

Value

Deprn.

Premises 490000 Furniture and Equipment 92000 Motor Vehicle 10000 490000 154000 16000

62000 6000

Total Fixed Assets

502000

Current Assets Stocks Food Beverage Debtors Bank Balance 5980 9270 15250 161814 12760 189824

Current Liabilities

Creditors 156059

33765

33765

Capital Employed

658059

Financed by:

Capital Retained Profits Net Profit Loans 46680 223062 40000

350000

Capital Employed

659742

We could see from the balanced sheet clearly that the proposed budget would very well fulfil the immediate liabilities of the property and the rates applied seem to have a great impact on the resort which we could see through the departmental budget plan.

Appendix AGraph 1Breakeven for Tides Reach Hotel

Breakeven Point

Sales and Costs

Total Costs

Fixed Costs

Total Sales Revenue

Graph 2Breakeven for Accommodation Operation

Total Sales Sales and Costs

Total CostsBreakeven Fixed Costs

Revenue

Graph 3Breakeven for Food OperationTotal Sales

Sales and Costs

Breakeven Point

Total Costs

Fixed Cost

Revenue

Graph 4Breakeven for Beverage Operation

Total Sales Sales and Costs

Breakeven Point

Total Costs

Fixed Cost

Revenue

Appendix BComparison of three operating departments within Tides Reach HotelAccommodation Sales Direct Variable Costs Indirect Variable Costs Contribution Fixed Costs Net Profit C/S ratio Sales Mix Percentage Point 86% 22% 19 58% 55% 32 58% 23% 13 252465 32480 3895 216090 Food 641586 267880 3895 369811 Beverage 260250 104305 3895 152050 Total 1154301 404665 11687 737951 369304 368647 64%

64

ReferenceBrassington, F. and Pettitt. S. (2003). Principles of Marketing, Third Ed., London: FT Prentice Hall. Burton Farmhouse. (2009). [Online] Sample Menu, Available at: http://www.burtonfarmhouse.co.uk/restaurant/menu.html [accesssed on 07.01.2010]. Harris, P. (1992). Profit Planning, Oxford: Butter-Heinemann Ltd. KeyNote. (2009). [Online] Hotels 2009, Available at: http://www.keynote.co.uk.ezproxy.brighton.ac.uk/marketintelligence/view/product/10332/hotels?utm_source=kn.reports.browse [accessed on 12.12.2009]. Phillips, P. (1994). Welsh Hotel: Cost-Volume-Profit Analysis and Uncertainty, Vol. 6, No. 3, pp. 31-36. Starkov, M. and Price, J. (2007). [Online] Hoteliers 2007 Top Ten Marketing Resolutions, Available at http://www.hospitalitynet.org/news/4029822.print [accessed on 06.01.2010]. Victoria Inn (2009). [Online] Dining at the Victoria Inn Available at: http://www.victoriainn-salcombe.co.uk/?page_id=13[accessed on 07.01.2010]. http://biztaxlaw.about.com/od/glossaryb/g/Budget.htm- Jean MurrayHTTP://WWW.BUSINESSDICTIONARY.COM/DEFINITION/PROPOSAL.HTML

http://www.investopedia.com/terms/l/liquidityratios.asp