GM Hotel Strategic Budget Management Study

With the continuous development of China's tourism industry,hotel industry has become an important part of the national economy.A large number of international brand hotel settled in China led to more and more intense competition between hotel brands.The level of budget management is directly related to hotel's comprehensive competitive strength.Establish a set of scientific strategic budget management system,integrate various types of indicators closely related to hotel development by balance score card and conduct a comprehensive assessment for hotel performance have become the most urgent problem to be solved.This paper based on strategic budget theory and set GM hotel as example.By reviewing the current budget management procedure,it point out following problem are existed in GM hotel: hotel budget only focus on operation budget,but ignore finance budget as well as other non-finance indicator budget such as guest satisfaction,employee development and business procedure,which leads to the budget data very imperfect and the budget implementation lack of guarantee.In the budget feedback process,it is failed to analyze the budget difference by flexible budget.Moreover,there is no connection between actual result and performance appraisal.To solve the above problems effectively,literature research and theoretical deduction methods are introduced for GM hotel strategic budget system rebuilt.During the budget system set up process,GM hotel focus on setting up reasonable strategy budget target,preparing comprehensive budget,analyzing budget variance and implementing effective performance appraisal.Set Strategic budget management system construction as main line and a sound budget implementation with reasonable evaluation system as the center of gravity.In order to further clarify the budget target,score balance card are introduced for budget and performance appraise,Which combine finance,customer,internal procedure with employee development to promote all the aspect of hotel budget constantly move forward.Meanwhile,fixed budget and rolling budget are both used to make sure the overall budget target unchangeable but budget details change with the operation activities,which make the whole budget process keep close in line with hotel operation.By rebuilding the strategic budget management system,GM hotel set a clear strategic objective,optimized budget control and feedback mechanisms,improved the performance evaluation system so that financial indicators and non-financial indicators have been greatly improved,which make GM hotel stand out in the fierce market competition.Meanwhile,It also provide important reference for the strategic budget system establish of the hotel industry.