Why Better Budgets Start with Educated Hotel Operators
Too many hotel budgets are built in isolation, often crafted in finance offices or C-suite meetings with little input from the people who actually execute them. Creating budgets based on historical performance - of simply saying we’ll achieve an extra X% next year - is now defunct. Budgeting requires a more nuanced understanding of both the market and operations.
At Actabl, we believe that the most effective budgets don’t come from assumptions or spreadsheets alone. They’re built with insight from department leaders who understand the daily realities of hotel operations. And to make that happen, we need to train and empower those leaders to take ownership of the budgeting process.
Hotel Budgets Shouldn’t Be a Mystery
When hotel managers sit in monthly P&L reviews and hear they’ve missed a target, too often the answer is: “I didn’t even see the budget.”
They’re not being evasive. In many cases, they truly weren’t part of the process. They weren’t shown how the numbers were set. They didn’t know what they were aiming for, or why. And yet, they’re being held accountable for results.
We can do better.
Introduce the ETA Method: Expectations, Training, Accountability
Kevin Kelleher, hospitality leader, Actabl profitability champion, and advocate for operator education, explained his framework for success: ETA - Expectations, Training, Accountability.
It’s simple:
- Set Expectations: Show teams what success looks like and where targets come from.
- Provide Training: Educate department heads how to read, build, and execute budgets.
- Hold Teams Accountable: After the first two steps, accountability makes sense and drives growth.
Accountability without expectations or training doesn’t create results—it creates burnout. But with the right tools and education, hotel leaders can become key contributors to financial performance.
- See budgeting in action. Discover how Commonwealth Hotels uses Actabl’s ProfitSword to empower teams with real-time data, smarter forecasting, and stronger financial performance. Read the case study.
The Real Drivers of Success Are Your Operators
Hotel Department Heads are the legs of the operation. They move the business forward. But if they don’t know where they’re going, or why, even the most detailed budget won’t help.
“It's about equipping them with the understanding, the why and how of creating a budget and then explaining how they execute against that. Once they understand that, you're going to do a much better job of meeting your budgetary goals than if they weren't involved,” said Kevin.
When operators understand how their departmental budgets were built, how they connect to hotel-wide goals, and how their decisions impact profitability, they work differently. They manage labor more effectively. They make smarter purchasing decisions. They become invested.
As Kevin explained: “I can only be seen as a good leader if my team performs. And my team will only perform if I’ve set them up to succeed. Ultimately, we all succeed together, as one team.”
Training for Today’s Tech-Forward Workforce
There’s also a generational shift happening in hospitality. New leaders are arriving with fresh skills and talents; digital-first thinking, strong people management instincts, and customer-first development.
But many haven’t been trained on financial fundamentals like Excel or forecasting. They need intuitive tools and accessible training to turn their strengths into performance.
With the right support, these emerging leaders are capable of driving better financial outcomes than ever before. But only if we invest in their development.
What This Means for the Future of Hospitality
Educating hotel operators on budgeting is not a side project, it’s a strategy for long-term success.
“If we give them the technology to complement their talents and build new skills, they’re going to be incredibly successful. If the industry grasps this, then we’re looking at a true revolution of what the hospitality industry is going to look like in the future,” Kevin predicted.
When F&B leaders, Front Office Managers, and Housekeeping leaders understand the why behind the numbers, they become strategic partners. They bring better ideas to the table. They engage more deeply. They stick around.
And when they win, the whole property wins.
- Move beyond gut feel. Build a smarter 2026 hotel budget with our Hotel Budgeting Checklist. Benchmark, set profit targets, and stay agile. Download now to hit your goals with confidence.
