Budgeting in Hotel Chains: Coordination and Control

Improving hotel budgetary practice—A positive theory model

“…Such a response rate is considered above satisfactory for a postal survey. In comparison, previous hospitality based budgeting research has response rates ranging from 10% (Schmidgall et al, 1996) to 53% (Schmidgall and Ninemeier, 1987) and this survey has an above average rate in comparison.…”

“…Previous survey-based research into hospitality budgeting (Collier and Gregory, 1995;Schmidgall and Ninemeier, 1987;Schmidgall et al, 1996) provides evidence that some aspects of budgetary theory are not widely used within the industry, but not the reason why. This research has taken that additional step by collecting qualitative data as to why certain elements of budgeting theory are, or are not, used in practice.…”

“…USA (Schmidgall and Ninemeier, 1987) (%) USA (Schmidgall et al, 1996) (%) Scandinavia (Schmidgall et al, 1996) existing theory informed by previous theory, industry practice and the rationale for practice, and it establishes budgetary techniques and approaches that are appropriate in a hospitality industry context. Whilst previous hospitality studies have focused on one aspect, generally industry practice, it is the insight of in depth investigation of both normative theory and industry practice that is the strength of this study and makes it a valid contribution to knowledge in this area.…”

A survey of factors influencing the cost system design in hotels

“…Furthermore, as the majority of the studied enterprises take the prices from the leading enterprises, the actual importance of cost accounting is rather limited. Schmidgall and Ninemeier (1987) studied operation budgeting practices on hotel chains in US focusing on coordination and control. The chains surveyed included the 47 largest lodging chains in the United States.…”

Budgeting in the information age: a fresh approach

“…Furthermore, the development of``bottom-up'', participative approaches to budget determination as well as other more sophisticated budgetary control techniques are becoming increasingly widespread ± especially in multi-unit operations (Schmidgall and Ninemeier, 1987;Schmidgall et al, 1996), while the use of more simplified systems has been viewed as being more appropriate for smaller and/or single unit operations, or where perceptions of environmental uncertainty are high (Rusth, 1990).…”