What is non revenue department in hotel?
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non revenue department are departments which do not make money
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When preparing income reports in the hotel sector, the non-revenue department term is frequently used.
- Hotel departments are classified into three different categories in context to revenue generation.
- Departments in charge of revenue creation and operations.
- There are other two types of departments: those that generate revenue and those that do not generate revenue.
- Departments that aren't in use but bring in money or are responsible for income generation.
- The non-revenue producing and working or the operating departments are those departments that are not run by the hotel and are not directly responsible for the hotel's revenue source. However, they support and play a significant role in different revenue-based operating sectors and work on legal time-bound contracts. Here are some examples.
- Both rooms and food and beverage sales and marketing are focused on attracting and keeping guests.
- Human Resources Department
- Accounting department: Receives a copy of all departmental vouchers and guest bills and keeps track of other finances and sales-related records and documents.
- Receiving and archiving
- Security: Is responsible for tracking and keeping watch on all unplanned situations in the hotel.
- Restoration
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