The use of management accounting systems in hotels: an exploratory study

Abstract

In this study we investigate use of management accounting systems by general managers and department managers in luxury hotels. We also investigate general managers' emphasis on financial and non-financial performance indicators while they evaluate their department managers' performance. In addition, managers' satisfaction with details and availability of their hotel's management accounting system (MAS) is assessed. The results indicate that general managers and department managers make equal use of MAS for both short and long-term decisions. However, a detail analysis of the data by manager groups indicates that general managers differ from department managers with respect to their use of MAS for making decisions. Furthermore, general managers, compared to department managers, are found to be more satisfied with the frequency in which MAS is available to them. On the issue of department managers' performance evaluations by general managers, the results reveal that general managers put more emphasis on financial than on non-financial performance indicators. The department managers in the study were in charge of food and beverage and room departments. The sample is rather small; only 35 managers from one region in Australia participated in the study. Therefore, any generalisation of the results requires caution.