ACTIVIDAD HOTELERA

To our parents for their

unconditional support that they
give us every day.

To our friends for their sincere

friendship.

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INTRODUCTION

The present work entitled "hotel activity" is an essentially intangible activity, which is
offered to meet the accommodation needs of tourists and other types of travelers.

The hotel activity is a service activity that is offered to people who need these services and
one of the activities that gives greater economic movement and is an important source of
income is tourism carried out by citizens of the world very often internally (within their
country) or externally (abroad). This paper includes an exposition on: history, basic
concepts, characteristics, classification, types of hotels, cost structure in a hotel, legal and
labor regulations.

Since prehistoric times, man has had the need to move for commercial and exchange
purposes, so he has needed to stay in different geographical locations. This activity is
characterized by its great diversity, complexity, rigidity of supply, conditioning to exogenous
factors and elastic demand, being also governed by various regulations, such as tax, labor
and other regulations.

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CHAPTER I

HOTEL ACTIVITY

1.1. ACTIVITY OF THE HOTEL COMPANY

At the business level, the hotel business can be considered a traditional enterprise, its
management is based on the cost of production and the correct organization of the
available resources (rooms), as well as an adequate management of the rates, often
based on seasonal changes (high, medium, low) and on the negotiation for the
accommodation of groups of people as opposed to individual accommodation.
The hotel is a company dedicated to the presentation of hotel services.
These are those establishments that provide lodging with or without modal services.
Its main activity is concentrated in:
Reservation of rooms and services in hotel and complementary establishments.
The hotel business is a commercial activity that mainly sells lodging and gastronomic
services; it has special general and economic and financial characteristics that
differentiate it from other commercial and industrial activities. Some of the general
characteristics of this sector are: great diversity and complexity, supply rigidity,
conditioning of exogenous factors and elastic demand.
The uniform international industrial classification of all economic activities in this sector
is:

ISIC DESCRIPTION
5510-4 Hotels, camps and other types of lodging.
Activities of travel agencies and travel organizations, tourist assistance
6304-4
activities n.e.c.

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1.2. CHARACTERISTICS OF THE HOTELS

 It belongs to the service sector and originates an immediate encounter between

the product and the consumer.
 It produces permanent contacts within the company between the different
components of the work organization and its different hierarchical levels.
 It needs rapid and permanent innovations in relation to the needs and
preferences of customers as well as the legitimate aspirations of employees
and production techniques.
 It is directly impacted by the direct influence derived from the economic,
political and social situation.
 It is a limited production industry (lodging).
 Some of the hotel's internal services generate an indirect sale.
 Within the hotel concept, at least three types of businesses can be recognized:
 Service provider (accommodation and others)
 Processing company (kitchen and others)
 Trading company (bars and others)
 The hotel product is "consumable" and "not storable".
 The sale of hotel services (micro products) has its own characteristics.
 Limited validity in time and rigidity in space.
 In tourism, the product is consumed at the place of production.

The service hotel has a unit of time and space that cannot be stored.

1.3. ESTABLISHMENT OF LODGINGS

A lodging establishment is a place where, on a regular basis, it offers a non-permanent

improvement service and where other services can also be provided (Vg. Food parking
service) in exchange for money or other exchange factor, which best suits you and in
which the guest and the service provider agree.

1.4. LODGING ESTABLISHMENT REGULATIONS

These regulations establish the provisions for the classification, categorization,

operation and supervision of lodging establishments; likewise, they establish the
competent bodies in such manner. As well as the obligation for all those who start
operations to submit a sworn statement of compliance with the standards relating to the
minimum conditions of the service they provide. It establishes the infrastructure,
equipment and services requirements for the hotel class: Apart-hotel, Hostel, Resort,
Eco Lodge category from 1 to 5 stars.
Lodging establishments are classified and/or categorized as follows:

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Class Categories
Hotel One to five stars
Apart-Hotel Three to five stars
Hostel One to three stars
Resort Three to five stars
Eco Lodge -
Hostel -

1.4.1.The Apart-Hotel:
It is a classified lodging where permanent lodging services are not usually provided
for guests or users to stay overnight.
They are made up of departments that integrate an operating and administrative
unit.
They are in the 3 to 5 star category and must meet the minimum requirements
established for them in Annex No. 2 of the regulations.
It is established that movable and finished goods must be in relation to their
corresponding category.
The requirements for ventilation, safety zone, emergency exits, will be carried out
in accordance with those established by the Municipalities and Civil Defense.

1.4.2.The Inn:
The hostel is a lodging establishment that may occupy the whole or a part of a
building, completely independent, whose constant activity does not provide
permanent lodging services for its guests or users to spend the night in such
premises.
The rooms of the hostel should form a homogeneous whole. Hotels are
categorized as one-star hotels and must comply with the minimum requirements
set forth in Annex No. 3 of the regulations.
In the case of hostels with more than 4 floors, they must have an advisor service,
excluding the basement as a floor.
In addition, the furnishings, finishes and quality of service of the hostel must be in
keeping with the category.
Ventilation requirements, safety zone, emergency exit, will be carried out in
accordance with the requirements of the municipalities and Civil Defense.

1.4.3.The Tourist Inn:

It is a type of lodging classified as a hostel that is characterized by providing
lodging services on a permanent basis for overnight stays of national or foreign
tourists, which may be the respective tourism and / or domestic.

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The respective tourism is that carried out within the national territory by tourists
domiciled abroad. MINCETUR is in charge of the corresponding accreditation as a
tourist hotel.
To the lodging establishment classified as a hostel that requests them.
For such purposes, Article 18 of the lodging regulations establishes the
requirements for the accreditation of tourist hostels, such as the following:

 The general indication of the law.

 The receipt number and the date of payment of the processing fee according to
the rate established in the respective single ordered text of administrative
procedure. (TUPA)
 Brochures indicating that they are part of a tourism project.
 A letter of introduction from a respective association of travel and tourism
agencies that is legally constituted.
Accreditation may also be requested by the Competent Regional Body. Once the
applicant hotels obtain the accreditation, they must replace the nameplate of the
hotels with the name of the tourist hostels and who gave them the accreditation.
(Directorate, National, Tourism or Competent Regional Bodies)

1.4.4.Hotels
Hotels are classified and categorized lodgings that usually provide lodging
services, such lodging is not permanent.
When making a hotel reservation, the user must ensure that he/she is given the
reservation code and must ask for the name of the person who made the
reservation. All accommodations are obliged to respect the reservation.
The administration shall explain to the user the conditions of the reservation, the
minimum time for cancellation and the consequences of cancellation.
The lodging establishment may not charge extra to the rate charged in the
reservation, unless it has informed in a timely manner that its rate would be subject
to variations.
The hotel facilities must be in optimal conditions of conservation, operation,
cleanliness and safety to allow its use and the adequate provision of the
complementary service offered from the day it begins to operate.
In addition, hotels must provide permanent attention to their guests or users and
must post or display in public view the start and end time of the hotel day, both at
the reception desk and in the rooms.
The sole signature of the Guest Registration (card or books) indicates the
acceptance of the Lodging Agreement. It must indicate the corresponding tariff
with an indication of the taxes and surcharges that will be charged additionally or
that are included in the tariff.
Prior registration of clients or guests in the Guest Registry is a prerequisite for
occupying the room.
Lodging establishments are required to display in each room the rates for the
services they offer.

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They must also display the opening hours of the hotel night during the day.
The hotel day is understood to be the 24-hour period within which the guest may
stay in the lodging establishment, for the purpose of setting the rate respectively.
The guest registry consists of cards or books in which the guest's full name, sex,
nationality, identity document, usual address, date of arrival, probable date of
departure, means of transportation used, the assigned room number, the
corresponding rate with an indication of taxes and surcharges must be entered.
The rates and the hotel day must be respected.
They must have the indicated plaque indicating the category class granted by
some of the aforementioned organizations must be displayed in a visible place and
must comply with the provisions of the corresponding annex.
 In the event that the Competent Regional Body has granted the
classifications and categorization to the lodging establishments that have
requested, they must inform this to the National Directorate of Tourism
within the first 10 days of each month, under responsibility.
 According to article 11 of the lodging establishment regulations, the files
of lodging establishments classified and categorized as three stars and
hostels will be forwarded by the aforementioned entities, as appropriate,
and a decision on the request must be made within a maximum period of
30 calendar days.
 In this case, the files corresponding to lodging establishments classified
and categorized from four to five stars, of all Resort and Eco Lodge
categories, will be transmitted by the National Directorate of Tourism.
 A decision must be made within a maximum period of 30 days.
 If in the 30 days established to pronounce on the request for
accommodation of the corresponding authority has not been pronounced
and the administration of the entity in silence without claim your right to
request be issued.
 Once the evaluation process is completed, the certificate of the applicant
lodging establishment is granted, indicating that it meets the conditions
of classified and categorized lodging establishments. This certificate will
be valid for 5 years and may be extended for 5 more years and so on,
before the expiration date a report must be submitted from the
establishment that it is still in the necessary conditions to continue.
 Inspections will be conducted to see if it can continue with the
authorization. In the same category or a lower category depending on
the conditions.
 If the establishment exceeds the deadline for requesting the extension,
the extension will be cancelled.
 Regarding the session or transfer of a classified and categorized lodging
establishment, it will not lose such condition, since the class and
category is applicable to the real estate furniture installed in the simple

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establishment that is destined to the same activity and maintains the

quality of the service.
 Once the assignment or transfer has been made, the assignee or
acquirer will have a term of 30 calendar days to request the National
Tourism Directorate to issue the corresponding certificate in his name
with the date of the original certificate. In addition, an affidavit of the
transfer must be attached.
 Travel and tourism agency. The National Directorate of Tourism will have
a period of 30 days from the presentation of the request to decide
whether or not the accreditation is appropriate.

1.4.5.Resort:
A lodging establishment used in vacation areas, such as beaches, rivers and other
natural surroundings, which occupies the entirety of a group of buildings and has
an extension of free areas around it. Resorts may be categorized from 3 to 5 stars,
and must comply with the requirements set forth in Annex No. 5, which is an
integral part of the regulations.

1.4.6.Eco Lodge:
A lodging establishment that provides lodging services, preferably in common
rooms, to a determined group of guests who share one or more interests and
related activities, which determine the type of lodging.

1.4.7.Lodging:
The shelters must comply with the requirements set forth in Annex No. 6, which is
an integral part of the regulations.

1.5. RESTAURANTS:

Restaurants are companies whose economic activity consists of providing food and
beverage services to customers. It is an activity that stands out for the great dynamics
of its actions, because in order to meet the demands of its customers, the innovation of
its services, both in the products it offers and in the service it provides to its customers,
must be one of its main characteristics.
Large restaurant chains have become such because of the quality of the services they
offer.
Apart from the food, the comfort and entertainment provided by musical shows.

Restaurant categories
Categorization criteria:
 The quality of its facilities
 The quality of its equipment
 The quality of the service provided

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According to these criteria, restaurants will have a generic category:

 First category
 Second category
 Third category

Specific Categorization
The categorization restaurants as follows:
 5 forks
 4 forks
 3 forks
 2 forks
 1 fork

The generic categorization contains the specific categorization, so it follows that:

 Restaurants in the first category may be:
 5 forks
 4 forks
 Second category restaurants can be:
 3 forks
 2 forks
 Third category restaurants can be:
 1 fork

1.6. RESTAURANTS IN HOTELS OR OTHER LODGING ESTABLISHMENTS

Many hotels and other establishments provide other food and beverage services in on-
site dining rooms to better serve their guests or users as well as the general public.

1.7. CATEGORY OF 4 AND 5 FORKS RESTAURANTS (FIRST CATEGORY)

FOURTH FIVE
General use facilities and installations General use facilities and installations
One main entrance and one service entrance One main entrance and one service entrance
Separate general restrooms for men and Separate general restrooms for men and
women with toilets, urinals, sinks with warm women with toilets, urinals, sinks with warm
and hot water, electric hair dryer. and hot water, electric hair dryer.
Waiting room and bar with a minimum area Waiting room and bar with a minimum area
equivalent to 25% of the dining room area, equivalent to 30% of the dining room area,
independent of the dining room areas. independent of the dining room areas.
Bar independent from the dining room with a
minimum capacity of 15 tables.
Reception area where the telephone service, Reception area where the telephone service,
separate toilets and other facilities for the separate toilets and other facilities for the

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initial attention of diners will also be located. initial attention of diners will also be located.

Dining room with tables separated from each Dining room with tables separated from each
other by a space of 50 cm. other by a space of 50 cm.
Separate dining room or hall for banquets and
events
Good quality tableware Good quality tableware
Silver plated metal cutlery Silver plated metal cutlery
Sets of glass cups and glasses Sets of glass cups and glasses
Tablecloths and cloth napkins Tablecloths and cloth napkins
Varied menu of dishes with diverse culinary Varied menu of dishes with diverse culinary
specialties specialties
Liquor and wine menus in Spanish and in at Liquor and wine menus in Spanish and in at
least one foreign language least one foreign language
Telephone service for the dining room, bar Telephone service for the dining room, bar
and kitchen. and kitchen.
Television, music in all the facilities of the Television, music in all the facilities of the
establishment. establishment.
Establishment plus ballet parking
Air conditioning system Air conditioning system
Smoking and non-smoking areas Smoking and non-smoking areas
Fire detector, fire alarm and fire extinguisher Fire detector, fire alarm and fire extinguisher
Service facilities Service facilities
Kitchen with area equivalent to 20% of the Kitchen with area equivalent to 30% of the
dining room area dining room area
Adequate internal distribution of the other Adequate internal distribution of the other
warehouse, general storage, cold storage and warehouse, general storage and differentiated
freezing chambers, with hot and cold water. cold rooms for meat, dairy, fish and
vegetables with hot and cold water.
Stainless steel extractor hoods Stainless steel extractor hoods
Dining room, dressing room and restrooms Dining room, dressing room and restrooms
with hot and cold water for service personnel. with hot and cold water for service personnel.
Staff Staff

Reception staff Reception staff

Adequate number of waiters Adequate number of waiters
Dining room manager Maître
Waiter captain Waiter captain
Head Chef Chef
Adequate number of junior staff Adequate number of junior staff
Barman

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1.8. CHARACTERISTICS OF 3, 2 AND 1 FORK RESTAURANTS (SECOND AND THIRD

CATEGORY)

THREE HOLDERS TWO HOLDERS A HOLDING

Unit and facilities for general Unit and facilities for general Unit and facilities for general
use use use
One main entrance and one
service entrance
Separate general restrooms Separate general restrooms Separate general restrooms
for ladies and men for ladies and men for ladies and men
Reception where the
telephone service and toilets
will be located.
Waiting room and bar with a
minimum area equivalent to
15% of the dining room area.
Dining room Dining room Dining room
Alarm detector and fire Fire extinguishers Fire extinguishers
extinguisher
Ventilation of all facilities Ventilation Ventilation
Service facilities Service facilities Service facilities
Kitchen with area equivalent
to 20% of the dining room
area
Cold and hot water food
preservation system
Extractor hoods and Refrigerator and extractor Refrigerator and extractor
refrigerators hoods hoods
Toilets for service personnel
Staff Staff Staff
Head Chef Waiters Waiters
Dining room manager
Waiters

1.9. TOURIST RESTAURANTS

Restaurants that have the categorization assigned by the competent body may request
that they also be classified as tourist restaurants.
 Conditions for qualification as a tourist restaurant
The qualification of tourist restaurant may be requested for restaurants with 3, 4
or 5 forks that meet any of these conditions:
a. Are located in properties declared cultural heritage of the nation.

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b. They are mainly dedicated to the exploitation of gastronomic

resources of one or more regions of the country or of Peruvian
gastronomy.
c. Have rooms that disseminate Peruvian cultural exhibits (paintings,
handicrafts and similar) on a permanent basis.
d. Offer national folklore shows.

 Five-fork restaurants rated as tourist restaurants:

The restaurants of five forks qualified as "tourist restaurants", when providing
additional complementary services or not, must guarantee at least 40 diners at
the same time.

1.10. TAX BENEFITS FOR LODGING ESTABLISHMENTS.

By means of D.Leg. No. 780 - article 2 established by the executive. There are 2 types
of exonerations that benefit the lodgings that were constituted, which are:

1. Exemption from minimum income tax and depreciation at a rate of 10% per
year. For real estate owned by such companies that is used for the production
of taxable income.
2. Property tax exoneration, are exonerated in the following terms:
 Companies that are incorporated outside the province of lima and callao,
will obtain these benefits for a period of 5 years from the date of
incorporation.
 Companies incorporated within the province of lima and callao, will obtain
this benefit for a period of 2 years from the date of incorporation.

By means of the D.L. Nº 820- article 1 and 2. Two types of exonerations are considered
that benefit lodging facilities that are constituted or expand their operations before
December 31, 2003:

1. Property tax exoneration; they are exonerated in the following terms.

 Companies located outside the province of lima and callao, will obtain this
benefit for a period of 5 years from the date of commencement of
operations.
 Companies located within the province of lima and callao will obtain this
benefit for a period of 2 years from the date of starting operations.

2. Exemption from extraordinary tax on net assets. For income tax purposes, the
Company may depreciate its real estate property used for the production of
taxable income at a rate of 10% per year.

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In addition, regarding the extension of operations for both cases of property

tax exemption, the following is established:

 Companies located outside the province of lima and callao, will obtain this
benefit for a period of 5 years from the date of commencement of
operations.
 Companies located within the province of lima and callao, will obtain this
benefit for a period of 2 years from the date on which the extension
investigations are carried out.

1.11. TAXATION ASPECT

Taxes to which they are subject:

A. Income Tax:
This tax is levied periodically on sales obtained by taxpayers domiciled in the
country, regardless of the nationality of the individuals, the place of incorporation
of the companies or the location of the producing source. It also taxes non-
domiciled taxpayers in the country only with respect to income from Peruvian
sources.

Tax Benefits: Decree No. 820 constitutes a tax benefit for lodging
establishments, in Article 2 of Law No. 26962 and 2, provided that they start or
expand their operations before December 31, 2003. Two types of exemptions are
established:

 Property tax exemption: lodging establishment service companies are

exempt from this tax for the following reasons:
 Companies located outside the province of Lima and Callao will
enjoy this benefit for a period of five years from the date of
commencement of operations.
 Companies incorporated within the province of Lima and Callao
will enjoy this benefit for a period of years computed from the
date of commencement of operations.
 Exemption from the extraordinary tax on net assets: for income tax
purposes, depreciation of 10% per year of real estate owned by the
Company may be applied to the production of taxable income. Article 5 of
D.S. No. 089-96-96- EF provides that the commencement of operations is
determined by the first rendering of services for consideration.

B. Financial Transaction Tax

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EFFECTIVENESS ALICOTA
From the effective date of Law No. 28194 0.10%
From January 1, 2005 through December 31, 2005 0.08%
From January 1, 2006 to December 31, 2006 0.08%(1)
From January 1, 2007 to December 31, 2007 0.08%(2)
From January 1, 2008 until December 31, 2008 0.07%(3)
From January 1, 2009 to December 31, 2009 0.06%(3)
As of January 1, 2010 0.05%(3)

(1) According to the fifteenth supplementary provision of Law N° 28653

(2) Pursuant to Article 7 of Law No. 28929-0
(3) Pursuant to Article 3 of the D. LEG. No. 975, published on 15. 03.2007.

They are not subject to financial transaction tax, among other operations:
a. Transactions carried out between accounts of the same titleholder.
b. Bonuses in the account for remunerations, pensions and compensation for time
of services, as well as any payments made from these accounts.
c. The accreditation and debit in accounts of diplomatic representations and
international organizations recognized in our country.
The tax will be deductible for income tax purposes.

C. TOURISM LEGISLATION

The tax system applied to the hotel sector has been the same as that applied to
all economic service activities:

• General sales tax 18%.

• Income tax 30%.

There has not been any significant tax exemption, nor has there been a reduced
differential rate to constitute a factor that promotes and attracts private
investment. As mentioned above, Legislative Decree 780 was issued in 1993,
which granted income tax exemptions (taxable income) to companies that
invested in hotel infrastructure, but it lasted only two years, until 1995. Therefore,
the only promoting mechanism has been the guarantee of maintaining tax
security in the sense that the government promised not to raise tax rates and to
guarantee the return of their capital and profits to their countries of origin.

D. ISSUANCE OF PAYMENT VOUCHERS:

The invoice issued by the establishment must show separately the amounts
corresponding to the following items:

 Lodging Service.

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 Food service provided within the lodging establishment to the non-

domiciled subject lodged in said establishment. The food and/or
beverages consumed should be detailed, as well as their value.

E. BOOKS OR RECORDS:

In contrast to the above, the regulation in question indicates in an exhaustive

manner what should be understood by books of minutes, records and accounting
books related to tax matters. Thus we have:

a) Inventory and Balance Sheet Ledger

b) General Ledger
c) Journal
d) Box Book
e) Withholding Book
f) Income and/or Expense Ledger, as applicable
g) Auxiliary Fixed Assets Control Ledgers
h) Record of Sales and/or Revenues
i) Purchase Register
j) Valued or unvalued permanent inventory record, as applicable

F. LEGALIZATION OF THE GUEST REGISTRY:

Lodging establishments will no longer be required to legalize the corresponding

Guest Registry.

This has been provided by the National Superintendence of Customs and Tax
Administration (SUNAT) through Resolution No. 219-2012/SUNAT, published on
Wednesday, September 19, 2012, which amends numeral 2.5 of Article 2 and
Article 3 of Resolution No. 234-2006/SUNAT, which establishes the rules
regarding books and records related to tax matters.

1.12. LEGAL ASPECT

According to the Civil Code, the lodging company is obliged to provide the guest with
lodging and, additionally, food and other services contemplated by law and custom, in
exchange for a fee. This may be fixed in the form of a tariff by the competent authority
in the case of hotels, inns or other similar establishments.
The lodging is also subject to the regulations and general contracting clauses approved
by the competent authority.

A. Guest Rights:
Among the rights of the guest we have:

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1. The guest has the right to demand from the host that the room presents
the conditions of cleanliness and operation of normal services and that
the food, if any, meet the requirements of adequate quality and hygiene.
2. Lodging establishments shall display in a visible place the rates and
contract clauses that govern this contract.
3. The host shall be liable as depositary for the money, jewelry or
documents and other property received in custody from the guest and
shall exercise the ordinary care required by the nature of the obligation
and corresponding to the circumstances of the persons, time and place.
4. The guest shall also be responsible for the objects of common use
introduced by the guest, provided that the latter complies with the
requirements of the notice which shall be posted in a visible place in the
rooms. The competent authority shall fix the limit of liability.
5. The guest is obliged to inform the host of the loss or deterioration of the
goods brought into the establishment as soon as he/she becomes aware
of it. Failure to do so shall exclude the liability of the host, except when
such events occur due to wilful misconduct or inexcusable fault of the
latter.

B. Rights of the Host:

1. The luggage or other goods delivered or introduced by the guest shall be
preferentially liable for the payment of the lodging payment and for the
damages and losses caused to the establishment by the guest, and the
host shall be entitled to cancel them.
2. The host has the right to request from the guest, within twenty-four hours
of his admission, a written statement of the objects of common use
introduced, as well as to check their accuracy.
3. The host may not refuse to receive in custody or to have the goods
brought in without just cause. The excessive value of the goods in
relation to the importance of the establishment, as well as its nature
insofar as it constitutes an obstacle with respect to the capacity of the
premises, are considered as such.
4. The host's responsibility for the custody of the goods deposited or
brought in extends to the acts or omissions of family members working
with him and their dependents.
5. The host does not prove liability if he proves that the subtraction, loss or
deterioration of the goods brought in by the guest is due to his exclusive
fault or that of those who visit, accompany or are his dependents, or if it
is caused by the nature or defect of the goods.
6. With respect to the additional service of setting up vehicles or similar, it
is governed by the aforementioned.

1.13. PARTICIPATION OF THE COMPANY'S EMPLOYEES

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The participation amount is 5% for the service sector.

Workers entitled to profit sharing must be included in the labor regime of the private
sector, work in a company that generates third category income, and be incorporated to
the company through an indefinite-term employment contract, subject to a modality or
part-time.
The deadline for payment is 30 calendar days from the expiration of the deadline for
filing the annual income tax return. After this period and upon written request of the
employees, the unpaid profits generate general legal interest.

1.14. COST ACCOUNTING FOR HOTEL MANAGEMENT

1.14.1. Economic and Financial Generalities of the Hotel Company.

The hotel business is a business activity that sells lodging services, gastronomy,
bar, social events, etc. It has special general and economic-financial
characteristics that differentiate it from other commercial and industrial activities.
Some of the general characteristics of this sector are: great diversity and
complexity, supply rigidity, conditioning to exogenous factors and elastic
demand.
Special economic and financial features include the following:
The nature of the hotel product: the nature or characteristics of the product sold
by any one industry is of considerable importance to it for a number of reasons; a
product lasting for long periods of time and maintained by high seasonal
demand, to meet peaks in demand; during periods of rising prices it demands the
ability to sell at a higher price, hotel products are entirely different, a room that
has not been occupied is an unrecoverable loss of revenue, similarly in the
Gastonia area a portion of the unsold prepared food is perishable.
Another of the basic characteristics of the economic activity of hotels is the short
period of its cycle of operations since they are practically daily the food received,
in the morning is consumed during the day the instability or fluctuation of income,
the variability of operations: are characteristics of the hotel activity either during
the annual cycle, the days of the week or the hours of the day, which causes a
stability or fluctuation in income.
This operating structure, with cyclical ups and downs, gives rise to the so-called
high and low seasons, which in many cases results in the need to operate
partially during the low season.
The cost structure of hotels is made up of the following: the operating cost, i.e.
the cost of production or provision of services, which is defined as the monetary
expression of the resources invested during the process of attending to guests
and users of the services; it includes expenses for food, beverages, materials of
all types, fuels, energy and other resources consumed during the process, as
well as expenses for personnel remuneration, depreciation of equipment,
buildings and other equipment, promotion and marketing, as well as expenses for
personnel remuneration, depreciation of equipment, buildings and other
equipment, promotion and marketing, and the cost of the services provided.It

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includes expenses for food, beverages, materials of all kinds, fuel, energy and
other consumable resources during the process, as well as expenses for
personnel remuneration, depreciation of equipment, buildings and other
equipment, promotion and marketing, maintenance of facilities, taxes and other
expenses arising from the activities carried out by the hotel entity.
Hotel costs can be direct or indirect. A direct cost is one that can be identified
with a process, product, cost center, or service. An example of direct costs is the
cost of food prepared to serve guests or the general public.
An indirect cost is one that cannot be directly attributed to a production or
service. Such as the hotel manager's remuneration or general building
depreciation; indirect costs can be distributed to the number of productions,
services or outlets of the hotel according to a basis or rate of distribution that
reflects the manner in which these indirect elements are assumed to be used or
applied. However, indirect cost allocation bases are generally arbitrary or are
based on theoretical bases or criteria issues, which is why most entities currently
reject the allocation of indirect costs and record them on an activity basis (ABC
costs).
In a general sense, most hotels have a high proportion of fixed costs, and
analyzing it from the point of view of cost center (lodging, food, bar, social-
cultural events and other complementary events), the highest percentage of fixed
costs occurs in the lodging area, many of the expenses in this area are of a fixed
nature.In general, most hotels have a high proportion of fixed costs, and
analyzing it from the point of view of cost center (lodging, food, bar, social -
cultural events and other complementary events), the highest percentage of fixed
costs occurs in the lodging area, many of the expenses in this area are of a fixed
nature, the main ones being depreciation, operation and maintenance of the
facilities. Variable expenses include laundry services, items for guests and other
incidental expenses, which constitute a relatively small percentage of lodging
production. (water and electricity consumption have a fixed and a variable part).
The percentage of fixed costs for food and catering operations is relatively low in
relation to the volume of food and catering revenues.

1.15. COST CENTER

Lodging or accommodation

Gastronomy or canteens

Garage or parking lot

Guest laundry

Gym

Events (social-cultural)

Others
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Administrative areas

Revenue and public relations

Administration

Purchase of warehouses

Data processing

Human resources (staff support)

Tourism transportation

Marketing

Recreation

Energetics

Operation and maintenance

Non-operating department expenses are not distributed to the cost centers that
generate income, but rather represent administrative and sales expenses.
An additional possibility of the cost structure is indicated by obtaining the "total
cost" in the cost centers by transferring to them the proportional part of the
indirect costs.
The basis for allocating indirect costs to cost centers should logically be the
amount of services rendered by each center, but if there is no exact
measurement, a correct and reasonable measurement should be made.
 Collect the necessary data, including services between cost centers
and other information to determine the basis for distribution.
 Reclassify if necessary, e.g., distributions can be made on a monthly
basis. The order may need to be reversed for a more accurate
distribution of overhead costs.
 Distribute fixed costs (rent, insurance, depreciation) directly to all cost
centers.

1.16. COSTING METHODS

There are several costing methods to apply to the costing system, but all of them are
very similar in essence, the most used in the hotel industry is the so-called service
center method.

To apply this method, the following steps are necessary:

A. First: Divide the hotel into service centers or cost centers or areas of responsibility,
also taking into account the division into main and auxiliary sections. Each section

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is characterized by having a person in charge, specific objectives, human and

material resources and allocated costs. In the event that there are costs that
cannot be assigned to any section, they will be allocated to an indirect cost
section.
B. Second: Allocate all the costs that have been generated in the period to each
service center. In the event that there are costs that cannot be assigned to any
section, they will be allocated to an indirect production cost section. With this
primary allocation, it is possible to know the cost of each service center or area of
responsibility, which is one of the objectives of cost accounting. Each indirect cost
can be distributed according to different distribution bases.
C. Third: Allocate the indirect production costs taking as a basis for distribution: the
amount of services offered during the year by each cost center or products
obtained (amount of times occupied in lodging, amount of food obtained during the
year, amount of events held during the year), based on the income generated by
them, for which a distribution factor must be found that can assume the
proportional part of the indirect cost.
D. Fourth: Once the service centers (lodging, dining rooms, bar, discotheque, cultural
or social events and others) have been defined, the distribution factor of indirect
costs is multiplied by the total cost of indirect disbursements, thus finding the
proportional amount of indirect costs, which will be assigned to the cost centers.

1.17. SALES PRICING OF A PRODUCT OR SERVICE USING DIRECT COSTING

We consider it appropriate to clarify that in addition to cost price analysis, the selling
price of a service is usually set on the basis of market price analysis, i.e. this price
depends on the competitors' prices, the hotel's category and the marketing policy
designed.
There are several methods for setting the selling price of a product or service, one of
the most commonly used consists of the following steps:

- Calculation of the direct costs of the product or service as analyzed above.

- Set the percentage that the direct costs assigned to the product represent of
the hotel's total costs.
- Calculation of the total cost of the plan by dividing the direct cost of the product
or service by the ratio of direct costs to total costs.
- Finally, the desired profit margin is added to the total cost using the following
formula: PV = total cost x (1 + desired margin).

The main limitation of the method described above is the assumption that the same
percentage margin must be applied to all the products and services of the same activity
offered by the hotel, which in practice is not common. To solve the above problem, it is
necessary to know for each activity and, if necessary, for each family or group of
products and/or services, the percentage that indirect costs represent of the hotel's total
costs, which is very difficult to obtain in practice.

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1.18. COST AND REVENUE MANAGEMENT AND CONTROL ROOMS DEPARTMENT

- Revenues
These are all amounts accrued by the customer as consideration for having
stayed overnight in one of the hotel rooms. Obviously, this income depends on
the type of accommodation and the hotel's price per room.

The price per room is established taking into account:

o The desired benefit.
o Costs.
o The volume of activity of the hotel, since the same price is not applied for
the same room in low season.
o The type of client, since there are different types of groups to which
different prices are applied for the same rooms.

The main premise to take into account when determining the price is that it must cover
all the costs plus the benefits that we want and the application of any type of price
cannot make us lose clients since it is very easy to lose them and very difficult to
recover a lost client.
There is another system that adapts the price of the product according to demand. This
system aims to optimize billing depending on the existing demand.
Originally, this system was used by airlines, although it has since been applied to
different types of companies.

This system establishes:

o When supply is greater than demand, prices must be lowered to reduce
the number of rooms lost. Let's remember that the services offered by a
hotel are perishable and therefore, a room lost today is a cost.
o When demand is greater than supply, the price must be increased to
increase the profit margin of the non-lost rooms.
The valuation of the optimization (YM) can be done using the following
formula:

Yield: Ratio of physical sales X Average selling price ratio.

For the application of YM it is necessary to have an information system
since it is necessary to have a series of variables to know when to
apply this pricing method.
Other information necessary for the YM is the demand for rooms, the
forecast of occupied rooms, the season we are in (high or low season),
etc.
The information on the demand for rooms can be obtained by planning
the demand considering aspects such as market segmentation, data

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from previous years, forecasts made for this period and the information
obtained.
As for the forecast of occupied rooms, we obtain this data through the
central reservation system, which provides us with a detailed report on
the completion of reservations. It only takes into account reservation
requests since, when the reservation is confirmed, it is understood that
at the same time, the reservation or part of it is paid. Therefore, the
revenue management system already interprets advance payments or
partial payments as secure revenue.

- Costs
The costs allocable to this department are only those that contribute directly to its
operation, which are:

o Personnel expenses distributed among the different cost centers.

o Consumption of direct materials.
o Other direct expenses or disbursements.

The remaining indirect costs are allocated to the cost centers on the basis of a
distribution factor.

1.19. OCCUPATIONS AND WAGES IN THE HOTEL SECTOR

Employee Remunerations, we can see that the least remunerated sectors or with low
salaries are the Insurance sector and the Hotel sector, being the best remunerated
sectors the Mining sector and the Electricity, Gas and Water sector; this is both in terms
of executives and employees.
The reasons why the hotel sector is poorly remunerated are as follows:

 Many jobs are unqualified, i.e. the qualities of different jobs are not attributed
or appreciated.
 Employers consider that many positions do not require qualifications; even if a
certain level of qualification is needed. They do not pay due attention to the
jobs are considered as very "simple", little valued in the employment sector so
that the appropriate training is not provided for these jobs, even the training
centers are scarce.
 Many employees are transient, either because of non-renewable contracts or
because the employee does not feel well at their workplace (overworked,
underpaid, unmotivated).
 Unionism and collective bargaining are often weak. They lack the necessary
character to defend their views and assert their rights.
 In areas where there is little or no alternative to hospitality there is zero or
negligible opportunity cost, as there are no competitive jobs available.

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 As a consequence of the transitory nature of work and weak unionization,

even when there are minimal wage regulations, employers often disregard
them without retaliation.
In the hotel sector, as we have noted above, wage levels are often low because
there is a large labor supply eager to secure quality employment in this sector
and employers may argue that they must spend money on basic training, as
those hired may not even have knowledge of tourist customs.

In the hotel sector, four occupational groups can be distinguished, each with
different types of occupations:

1.- ADMINISTRATION

 General Manager
 Chief of Staff
 Assistants
 Secretaries
 Counters
 Financial Manager
 Head of Reception
 Legal Counsel
 Collectors
 Billers
 Supervisor
 Administrator
 Auxiliary
 Kardista
 Programmers

2.- RECEPTION, LODGING AND APARTMENTS

 Receptionists
 Cashiers
 Janitors / Messengers
 Buttons
 Goalkeeper
 Elevator operators
 Drivers
 Supervisors
 Housekeeper
 Quartermasters
 Waitresses
 Babysitters
 Floor Waiters
 Cleaning Assistant

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 Waiters' Helpers

3.- FOOD AND BEVERAGES

 Head of Reception
 Banquet Manager
 Party Manager
 Barman
 Bar Assistant
 Waiter
 Assistant Porter
 Master Pastry Chef
 Chefs
 Cook
 Grill
 Salad Bowl
 Ice Cream / Juicer
 Fishmongers
 Juicers
 Dishwasher
 Cook's assistant
 Pastry assistant

4.- WAREHOUSE, LAUNDRY AND MAINTENANCE

Warehouse and Warehouse

 Purchasing Manager
 Warehouse Manager
 Warehouse Manager
 Storekeeper
 Bodeguero
 Assistants

Laundry

- Laundry Manager
- Clothes Control
- Seamstresses / tailors
- Laundresses
- Ironers
- Assistants

Maintenance

 Maintenance Manager

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 ACTIVIDAD HOTELERA

 Plumbers
 Gasfitters
 Painters
 Carpenters
 Welders
 Masons
 Locksmiths
 Gardeners.

With this classification we can determine which jobs are in which occupational
groups and also take into account that the general functions of the jobs are
similar or related to each other in each occupational group.

HOTELS IN HUANCAVELICA

Hotel Presidente: Located in one of the most traditional cities in Peru, Hotel Presidente
Huancavelica welcomes guests in its colonial architecture building, with
comfortable and modern facilities in the heart of the Historic Center,
where you can appreciate the vestiges of the impressive past of this
mining city, one of the main cities of the Viceroyalty of Peru.

The hotel has 45 rooms divided into the following categories: Tourist Type, Executive Type and
Presidential Suite. The Economy and Executive types are further sub-classified into single, twin,
double and triple. All have standard equipment consisting of private bathroom, telephone, cable
TV and heating.

 Hotel Ascension:
 Hotel D'Isabel
 Hotel Ascension
 Hotel San José
 Hotel La Portada
 Hotel Presidente
 Hotel Tahuantinsuyo
 Grand Cayman Hotel
 Hotel Señor de Oropesa

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 Savoy Hotel
 Hotel La Posada
 Hotel Paraíso
 Sleeping Beauty Hotel
 Hotel Belen
 Residential Hotel

CONCLUSIONS

The following conclusions can be drawn from the above:

 The growth in the flow of tourists to Peru during the last decade has been
characterized by a considerable increase in that the economy was stabilized
and the country was pacified, and tax stability and security were guaranteed.
.
 The hotel sector has not kept pace with the growth in hotel demand, with
demand outstripping the supply of hotel services.

 Despite strong domestic and foreign investments, the demand for hotels has
not been met, at least in the main tourist regions of the country.

 There has been no proposal to promote tourism based on tax exemptions.

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