THE JOURNAL OF HOSPITALITY FINANCIAL AND ......2 October/November 2002THE JOURNAL OF HOSPITALITY FINANCIAL AND TECHNOLOGY PROFESSIONALS Volume 17, Number 7 8 HFTP LAUNCHES THE VIRTUAL

THE JOURNAL OF HOSPITALITY FINANCIAL AND TECHNOLOGY PROFESSIONALS

Volume 17, Number 7 October/November 2002

2 October/November 2002

THE JOURNAL OFHOSPITALITY FINANCIAL AND

TECHNOLOGY PROFESSIONALS

Volume 17, Number 7

8 HFTP LAUNCHES THE VIRTUAL CONFERENCE & TRADESHOW, ONHTEC

COMPENSATION AND BENEFITS SURVEY 2002

11 EXECUTIVE SUMMARY

12 INTRODUCTION

12 PROFILE OF THE RESPONDENTS

16 JOB RESPONSIBILITIES

21 COMPENSATION

23 EMPLOYEE BENEFITS

26 EMPLOYER PROFILE

31 STAFF SALARIES

32 DEMOGRAPHIC INFORMATION

33 FEATURE INTERVIEW: RALPH MILLER, A MAN OF LETTERS AND TITLES

4 CALENDAR

5 BETWEEN THE LINESHard work has produced great results for the association.

6 Q&A FROM THE HFTP RESEARCH INSTITUTEMoney-saving tips for your food and beverage department.

HFTP®, HITEC® and LOHTEC® are regis-tered service marks of Hospitality Financial and Technology Professionals.

Submissions and InquiriesIndividuals interested in submitting an article for publication should contact the editor. The Bottomline is a peer review journal. All ma-terials submitted for publication are reviewed by members of the editorial review board or recognized experts in the fi eld.

The Bottomline (ISSN 0279-1889), the jour-nal of Hospitality Financial and Technology Professionals, Inc., is pub lished bimonthly with two special editions by HFTP®. Copy-right © by Hospitality Financial and Technol-ogy Professionals. All rights are re served. All opinions expressed here in represent the views of the authors. The Bottomline and HFTP disclaim any re spon si bil i ty for views expressed or state ments made in any articles published. HFTP disclaims any liability with respect to the use of or reliance on any such information. The information contained in this publication is in no way to be construed as a recommendation by HFTP or any in-dustry standard, or as a recommendation of any kind to be adopted or binding upon any member of the hospitality industry. Writ-ten consent must be obtained from HFTP before reprinting articles. Subscription fee of $30.00 for HFTP members is in clud ed in the membership fee. HFTP is headquartered at 11709 Boulder Lane, Suite 110, Austin, Tex as 78726. Periodicals Postage Paid at Austin, Texas. POST MAS TER: Send ad-dress changes to The Bot tom line, 11709 Boulder Lane, Suite 110, Austin, Tex as 78726, (512) 249-5333.

Benefi ts and Compensation Survey Results

C o n t e n t s

FEATURES

DEPARTMENTS

O C T O B E R / N O V E M B E R 2 0 0 2

The Bottomline 3

THE BOTTOMLINE STAFFFRANK I. WOLFE, CAE

EXECUTIVE VICE PRESIDENT/CEO

ELIZA R. SELIGEDITOR/COMMUNICATIONS MGR.

[email protected]

TRACEY STARCKCOMMUNICATIONS SPECIALIST

[email protected]

TERESA J. PULLEYADVERTISING SALES

[email protected]

2000-2001 HFTP OFFICERSPresident

JOHN J. CAHILL, CHTP, CHAMANHATTAN EAST SUITE HOTELS

NEW YORK, NEW YORK

President-ElectWENDY K. ZURSTADT, CPA, CHAE, CHTP

HARTFORD GOLF CLUBWEST HARTFORD, CONNECTICUT

Vice PresidentTINA MARIE SAMSON, CHAE

LOEWS HOTELS AT UNIVERSAL ORLANDOORLANDO, FLORIDA

Secretary/TreasurerFRANK A. AGNELLO, JR. CMA, CHAE

THE WYNDGATEROSCHESTER HILLS, MICHIGAN

Immediate Past PresidentDONALD E. WALTON, CHAE, CHTP

GROVE PARK INN RESORT, INC.ASHEVILLE, NORTH CAROLINA

2001-2002 COMMUNICATIONSEDITORIAL ADVISORY COUNCIL

CochairmanAB M. ECHENBERG, CHAE

AME CONSULTING

CochairmanFRANKLIN JOHN P. SIKICH, CHAE, CPAFRANKLIN JOHN PATRICK SIKICH, CPA

Executive Committee LiaisonFRANK A. AGNELLO JR. CMA, CHAE

THE WYNDGATE

Board LiaisonBERNARD FRIED, ED.D., CHAE, CHE

UNIVERSITY OF NEVADA, LAS VEGAS

MICHAEL L. BARE, ISHCBARE ASSOCIATES INTERNATIONAL

AYHAN V. BAYER, MTA, CHTPVIRGINIA POLYTECHNIC INSTITUTE & STATE UNIVERSITY

CHRISTOPHER J. BULLOCKRENAISSANCE NEW YORK HOTEL

SHARON CARYSANTA ROSA GOLF & COUNTRY CLUB

AMITAVA CHATTERJEE, CHTPPRICEWATERHOUSECOOPERS LLP

JOYCE CHRISTMASCHERVENAK, KEANE & CO.

DANIEL J. CONNOLLY, PH.D.UNIVERSITY OF DENVER

MICHAEL KASAVANA, PH.D., CHTPMICHIGAN STATE UNIVERSITY

ARLENE RAMIREZ, MBABENCHMARK HOSPITALITY

JO ANNA M. SCHILLACI, CHTPBOCA WEST CLUB, INC.

RAYMOND S. SCHMIDGALL, PH.D., CPA, CHAEMICHIGAN STATE UNIVERSITY

11709 Boulder Lane, Suite 110 • Austin, TX 78726–1832(512) 249-5333 • (800) 646-4387 • Fax (512) 249-1533

www.hftp.org • www.hitec.org

Printed by Press Corps, Austin, Texas

Hospitality Technology Professionals Forum at the IH/M&RSNovember 8, 2002 Jacob K. Javits Convention CenterNew York, N.Y.

CHTP ReviewNovember 12, 2002 Sponsored by the HFTP Mid-Jersey ChapterMaplewood Country ClubMaplewood, N.J.

CHAE and CHTP ExamsNovember 13, 2002Sponsored by the HFTP Mid-Jersey ChapterBaltusrol Golf ClubSpringfi eld, N.J. CHAE ExamDecember 23, 2002 Sheraton Cairo HotelCairo, Egypt

Hospitality Restaurant Professionals ForumFebruary 21, 2003 Crowne Plaza Los Angeles AirportLos Angeles, Calif.

Human Resources SeminarFebruary 21, 2003 Crowne Plaza Los Angeles AirportLos Angeles, Calif.

CHAE and CHTP Reviews and ExamsMarch 23, 2003 Radisson Hotel New OrleansNew Orleans, La.

Club and Hotel Controllers ConferencesMarch 24–25, 2003 Radisson Hotel New OrleansNew Orleans, La. CHAE and CHTP Reviews/ExamsApril 27, 2003 Marriott San Diego Mission ValleySan Diego, Calif.

Club and Hotel Controllers ConferencesApril 28–29, 2003 Marriott San Diego Mission ValleySan Diego, Calif. CHAE and CHTP Reviews and ExamsJune 23, 2003Ernest N. Morial Convention CenterNew Orleans, La.

HITECJune 24–26, 2003Ernest N. Morial Convention CenterNew Orleans, La.

CHAE and CHTP Reviews and ExamsOctober 15, 2003 Rosen Centre HotelOrlando, Fla.

Annual Convention & TradeshowOctober 15–18, 2003 Rosen Centre HotelOrlando, Fla.

CALENDARFor more information about HFTP events and CHAE/CHTP re-views and exams, please call (800) 646-4387 or (512) 249-5333, or visit www.hftp.org.


John J. Cahill, CHA, CHTP

BETWEEN THE LINESa letter from the president

Hard Work Has Produced Great Results for HFTP

This is my last Between the Lines column for our award-winning magazine. Each month in this space,

I have tried to focus your attention on a subject of current interest and then also tell you a little bit about the articles and authors in that particular issue. We have every reason to be proud of all of our articles, but especially our authors. Over the past year, there have been, at least 11 authors with a Ph.D., six who are CPAs and 33 with a CHTP, CHAE or CHA designation. And this year we had other contributors with other equally impressive credentials and designations. Some of those designations include: CMA, FMP, CHE, CDP, CPP, CLSD, CFP and MMH.

Each of our eight issues published dur-ing the year has a theme. We devote the better part of the issue to it. This year our themes were: gaming, tax issues, human resources, technology, clubs, HFTP’s 50-year history, the results to our salary survey, and international business.

We also took a special look at 30 years of HITEC in our June/July issue. In that issue there was a special section celebrat-ing 30 years of technology in the hos-pitality industry. We asked 40 respected technology pioneers and innovators to recall and write about a moment in their hospitality careers. Thirty-fi ve did. Their recollection topics varied immensely, but each was unique and interesting. Each of the 5,500 attendees at HITEC received a copy as a memento of the occasion.

Last, our Special October Golden An-niversary keepsake edition celebrated the 50 years of growth, progress and success of this association in both pictures and words. The research work for that edition began over a year ago. It was a labor of love for those involved.

Bringing The Bottomline to you takes the labor and love of a very small number of very dedicated people in Austin. Please look on the masthead page under “The Bottomline Staff” and look for this name: Eliza R. Selig, Editor/Communications Manager. This maga-zine wouldn’t/couldn’t happen without her. Together, with the assistance from Tracey Starck, she chases late authors,

develops the graphics, edits the submis-sions, manages and does a lot of the production work and fi nally insures that the fi nished product gets to you. Long hours of unsung glory for both. We owe both Eliza and Tracey a debt of thanks. Kudos to you from all of us.

We also must thank the Editorial Ad-visory Council for the work that they do. They have two main roles: 1) determining the editorial calendar and themes for The Bottomline and 2) securing the authors. The council co-chairs are Ab M. Echen-berg, CHAE and Franklin John P. Sikich, CHAE, CPA. Again, check the masthead for the names of the 13 committee mem-bers who so ably support the co-chairs.

We all hope that you have enjoyed each issue of the magazine as much as we all enjoyed creating them for you.

The BoardOur new Board of Directors and Offi cers will be installed this month during An-nual Convention. Wendy Zurstadt, CPA, CHAE, CHTP, controller of the Hartford Golf Club will be our 50th president. Wendy will have a great year and do great things. What she will not have is the wis-dom and guidance of the Board members whose terms have expired and will be leaving us. They are:

• Don Walton, CHAE, CHTP, HFTP im-mediate past president and director of fi nance at Grove Park Inn Resort and Spa. Don served as an offi cer of HFTP for the past fi ve years, and was on the Board before that.

• Jim Barnish, MBA, CHTP, vice presi-dent at Hyatt Hotels Corp.

• Clyde Cruise, vice president and con-troller of Hotel Operations for Star-wood Hotels & Resorts Worldwide.

• Bernard Fried, Ed.D, CHAE, CHE, associate professor at UNLV College of Hotel Administration.

• Joe Hylton, CHAE, director of fi nan-cial services for Wyndham Rose Hall Resort & Country Club.

• Ralph Miller, CHA, CA, CBV, CHAE, president/owner of Inntegrated Hospi-tality Management, Ltd. Ralph is mov-ing up to become our new secretary/ treasurer.

Each of these Board members has been unselfi sh, dedicated and hard working. Each will be missed.

This EditionThe theme of this edition is a subject near and dear to everyone’s heart — Com-pensation and Benefi ts. The survey is complete. The results are published. We all hope that your package is the one that skewed the results toward the high end.

Final WordI have been a proud member of this asso-ciation for over 20 years and I enjoyed all my years as a member and all the years as chapter offi cer or on various committees and councils for International. However, not one of those years was as satisfying or rewarding as this past one. I’m honored to have had the opportunity to serve you as your president. Thank you for all your support and encouragement.

Happy 50th anniversary HFTP!

The Bottomline 5

MONEY-SAVING TIPS FOR THE FOOD AND BEVERAGE DEPARTMENT

Question:Do you have information on how to cut back on food and beverage costs?

Answer:The food and beverage department is one area where costs can be drastically cut by managerial decisions. Cost increases can be seen at every step of the process including:

Pricing • Menu under-priced

Purchasing • Over-purchasing• Under-purchasing• Inferior yields• Higher prices• Kickbacks

Receiving• Inferior products• Damaged goods• Short weights

Storage• Spoilage• Spill and breakage• Theft

Preparation• Over-production• Over-portion

Serving• Wrong orders• Customer returns• Unreported sales

(Source: McGladrey & Pullen, LLP)

There are many ways that managers can cut back on food and beverage costs. The following are creative suggestions on ways to reduce costs for F&B.

• One of the key ingredients is that managers must make sure that they are receiving timely information. With the new back-of-the-house systems on, the market managers can analyze real-time information to make adjustments at any step of the process.

• Managers must work with their sales people and be on top of them to provide price lists on a weekly basis, especially in produce because the price fl uctuates so much during certain times of the year.

• Hire secret shoppers on a regular basis to insure service standards are being met.

Service, quality and revenues can improve if an objective eye is focusing on your operations.

• Perform “garbage audits” on a regular monthly basis to see what is being thrown away. Instead of emptying the trash into the dumpster, pour the con-tents onto the back dock to ensure that silverware, china, etc. are not being thrown in the trash.

• Have the dishwasher system examined by a professional company to see if you are using more chemicals than you need. (Many companies providing chemicals will set the system up to use more of their product.)

• Use “dead stock” wine for promotional activities to prevent wine from going bad and taking up storeroom space. (i.e. employee/charitable events)

• Do not turn all ovens on at once. Businesses are charged based on peak demand, so gradually turning on equip-ment will lower overall energy costs.

• Develop standard purchase specifi ca-tions, recipes and portions for all food and beverage items sold. Audit each periodically for compliance to the standards. Deviations, especially in recipes and portion controls, can have an adverse effect on cost.

• Purchase smart! Know your menu, products and the markets affecting your products. Buying smart does not simply mean buying at the lowest price, but rather buying at the low-est price when yield and quality are meeting your standard specifi cations. Buy direct when possible and reduce the number of middlemen handling the products. Buy non-perishables in bulk when the price is below normal and have your vendor store at his facility at the committed sales price.

• Establish an “approved supplier” list. New suppliers must meet all of the standard specifi cations, as well as be able to service the account on required days and in emergency situations. The food and beverage director and execu-tive chef should approve requested new suppliers.

• Establish minimum and maximum par stocks and purchase daily based on the daily inventories taken. Daily invento-ries should be taken on a pre-printed form that lists product specifi cations, minimum par level, quantity on hand, quantity to order and competitive quote boxes.

• Receive, store and rotate inventory. Inspect and weigh what you receive, es-pecially meats, fi sh and produce. Store products in the correct facilities and at the correct temperatures. Store wines upside down to keep the corks “wet.” Rotate products to ensure that stale dated products are not in the storerooms or being used in production.


• Perform menu abstracts, cost analy-sis, and sales analysis on a routine basis to target high-prep cost items or labor-intensive menu items. Review menu pricing a minimum of every six months and adjust accordingly.

• Educate your accounts payable or accounting department to know what is taxable or non-taxable on items or utilities purchased for the preparation of food and non-food items for sale and storage.

• Educate yourself on the cost of hourly labor, including, where applicable, payroll taxes and benefi ts, in deter-mining whether to use contract labor or payroll labor when business levels fl uctuate.

• Make sure drink recipes and pouring controls are established and followed for bar operations. Establish what the standard pour for liquor, wine and draft beer is and audit on a routine ba-sis to ensure compliance with the pour standards. Insist on either a gun or shot glass being used.

• Establish controls between produc-tion and service. The kitchen or bar does not prepare an order without a ticket. Review pick up or expediting procedures to ensure that the server is picking up only their order and not someone else’s.

• Make sure that storerooms have restrict-ed access and are locked during non-op-erating hours. Use a requisition system for both food and beverage issues from the storerooms. For bar operations, use a bottle for bottle replacement method on requisitions. Keep high-priced food and beverage items secured away from other regularly used food and bever-age items. Consider using a meat tag system for all cuts of steaks, and also a tag system for seafood products such as lobster tails. Restrict out of hours access and issues from the storerooms, only after signed management approval and witness.

• Restrict void checks to management only. Review void checks daily for compliance as well as for the reason for voiding the check.

I would like to thank HFTP members Agnes DeFranco, Ed.D., CHAE; Al Gallo, CHAE; and Rob Shumate for their contri-butions to this article. They provided the creative cost-cutting ideas listed above.

If you have any questions about the Research Institute please feel free to stop by and see me at the HFTP booth at the HFTP Annual Convention. I look forward to seeing everyone at the convention.

Contact Information:Tanya WilhiteProgram CoordinatorHFTP Research Institute(713) 743-1839(866) 572-HFTPFax: (713) 743-2548 E-mail: [email protected]: www.hrm.uh.edu/hftp

The Bottomline 7

HFTP is proud to an-nounce the October 2002 debut of the larg-

est and most comprehensive online conference and trade-show of hospitality technology available on the Web. The Online Hospitality Technology Exposition and Conference (ONHTEC), co-produced with Hsyndicate, will provide quar-terly scheduled online confer-ences geared around pertinent trends in hospitality technol-ogy and online marketing. The virtual conference and tradeshow, at www.onhtec.org, aims to provide knowledge and know-how to industry professionals at all levels of expertise.

ONHTEC will be comprised of three elements: exposition, conference and community. The exposition provides booth space in a wide range of product categories.

About ONHTEC ConferenceThe inaugural education session is slated for October 25, 2002 from 11 a.m. to 12:15 p.m. EST. The session, Emerging Tech-nologies, is the fi rst of quarterly-scheduled education sessions planned for webcast from the online conference. For each ses-sion, supporting documents and/or Power-Point presentations from the session will be made available on the site, along with additional background information such as related books and news. Each conference topic will also be combined with a series of exhibitor presentations in streaming audio and video formats.

Sessions planned for ONHTEC are as follows:

Fall 2002: Emerging Technologies, Oct. 25, 11 a.m.–12:15 p.m. EST Speaker: Brian Garavuso, CHTP; CTO for Interstate Hotels and Resorts

The session will broadcast from HFTP’s Annual Convention in Austin, Texas. The session will focus on some of the cutting edge technologies hitting the market today and will discuss how it will impact the hospitality industry. In addi-tion, future innovative technologies will be discussed.

Winter 2003: Internet Security, Book-ing Secure and Profi table Online Reserva-tions, Jan. 27, 11 a.m. – 12:15 p.m. EST

Speakers: Stephen Doherty; account manager for Post Integrations, Inc. and Brian Garavuso, CHTP; CTO for Inter-state Hotels and Resorts

This session will explore options for obtaining Internet-based reservations and considerations for securely handling sensitive guest data. The session will review available options to consider when deciding on a web-based solution, poten-tial issues that must be addressed when considering these services, and options for secure data communications with a third-party system to the property level.

Spring 2003: Wireless Technology in Hospitality; April 28; 11 a.m.–12:15 p.m. EST

Speaker: Ray Brown; vice president of Enterprise Solutions for Mitel Networks

This presentation will show fi rst-hand the end-user benefi ts to the deployment of a wireless solution within a property. Attendees will also be given a broad over-view of considerations when implement-ing a wireless solution, as well as a simple overview of the industry standard protocol used for wireless devices. Come learn how these solutions solve organizational needs and improve systems administration.

Summer 2003: Decision Support and Executive Information Systems; June 23, 11 a.m.–12:15 p.m. EST

Speaker: Darrin R. Pinkham, director of technology for Loews Hotels at Uni-versal Orlando

This session will demonstrate how the power of your information can be harnessed into a very visual/graphical user interface to help im-prove fi nancial results and analysis. Learn how to manage your information to gain knowledge quickly and accurately from daily reporting and forecast-ing, and to improve payroll management.

About the ONHTEC ExhibitionThe ONHTEC Exhibition will offer a unique content-rich environment for ven-dor information, ranging from extensive product information to streaming video and audio presentations. Visitors will have access to various virtual exhibition fl oors, with a different exhibitor category on each fl oor. The categories will range from guest room technology to safety and security systems.

ONHTEC exhibitors will have a virtual booth that will provide complete com-pany information to ONHTEC visitors. ONHTEC booths will include: A con-tent-rich company presentation, company news, case studies and press releases, streaming audio and video interviews, downloadable product documentation and presentations along with fl ash-animated presentations. Exhibitor content will be updated daily to ensure a dynamic trade-show experience.

About the ONHTEC Multimedia RoomONHTEC’s Multimedia Room will offer visitors access to a searchable database of over 400 streaming audio and video clips of ONHTEC discussions, HITEC confer-ence sessions, HITEC Online Studio interviews and exhibitor interviews.

For more information about ONHTEC, visit the website www.onhtec.org. To request information about exhibit-ing at ONHTEC, contact Teresa Pul-ley (ext. 29) at (512) 249-5333 or (800) 646-4387. To e-mail her, write to [email protected].

HFTP LAUNCHES THE VIRTUAL CONFERENCE & TRADESHOW, ONHTEC ONHTEC: Entrance, Registration, Education and Exhibitor Rooms

he 2002 Compensation and Benefi ts Survey was conducted by HFTP in conjunction with the HFTP Research Institute at the Conrad N.

Hilton College of Hotel and Restaurant Manage-ment, University of Houston, as part of a contin-ued effort to provide the HFTP membership with updated information. When this survey was done in 2000, the response rate of return was a very re-spectable 19 percent. In 2002, the membership has outdone itself, posting a 31.7 percent response rate.

One major advantage of this year’s survey is that the data is kept in-house at the Research In-stitute. This process guarantees the confi dentiality and anonymity of the members, keeps the integrity of the research, while giving the association and the membership access to further analyses in the future. The HFTP Research Institute is a member-ship service. Therefore, while the data presented

in this publication are only in a summary format, other sub-group analyses can be performed fairly easily. If you are interested in areas that this report has not addressed fully, please contact us through the HFTP web site at www.hftp.org, via e-mail at [email protected], or toll free at (866) 572-4387. In the Houston area, you can also call (713) 743-1839. Finally, we can also be reached by fax at (713) 743-2548.

HFTP is a quality organization with strong leadership, dedicated staff and loyal members. The commitment to always put membership before all is the motto. At this 50th anniversary celebra-tion, the results of the survey also underscore the success of the organization in the past and many more golden anniversaries to come.

Dr. Cary Countryman, CHE Dr. Agnes DeFranco, CHE, CHAE

T

The Bottomline 9

» Over 47 percent of the respondents work in the club industry and manage-ment companies, and 43.3 percent with hotels, hotel management companies and resorts.

» Almost 80 percent (79.7) of the respon-dents identify themselves as primarily fi nancial management and 5.5 percent identify themselves as having primarily technology related positions. Moreover, 10 percent of the respondents have titles such as director of fi nance, fi nan-cial manager, business manager, associ-ate director of accounts receivable, business assurance manager, director of the audit department, fi nancial analyst, managing director, and vice president of asset management.

» The average respondent has been in the hospitality profession for 14.4 years, in the hospitality fi nance or technology profession for 17.76 years, and in their current position for 4.61 years. While the statistics are similar to the 2000 results, this suggests that the respondents were fi nancial or technol-ogy professionals before they begin working in the hospitality business.

» The major responsibilities of HFTP members have not changed dramati-cally in the past two years. Fifty-eight percent of the respondents are on the executive committee of their organi-zations and 90 percent are involved in some way in the buying decision process.

» The average HFTP member works 48.76 hours per week, down from 50 hours two years ago.

» The overall percentage of those hold-ing the CHAE, 13 percent, and CHTP, 5 percent, in 2000 has increased to 13.9 percent and 7 percent respectively in 2002.

» Of those who responded, 11.9 percent reported having an employment con-tract while 5.1 percent have perpetual contracts with their organization. Other variations are multi-year contracts or some that are renewed annually.

» Performance evaluation is also an important element for our member-ship. Seventy percent of the year 2000 respondents received written perfor-mance evaluations, while 76 percent are reported for 2002, an increase of 6 percent. Evaluations are performed mostly by the general managers (58.6 percent), presidents and owners (10.8 percent) and others such as controllers, regional controllers and CFOs.

» An increased trend is noted for salary and deferred income. For 2002, it is projected that the CHAE respondents will receive an average base salary of $76,870, which is $7,124 more than the non-CHAEs ($69,763). The CHTP’s advantage is even greater, in that the projected CHTP 2002 base average will be $89,024 while the non-CHTP’s will be $69,488, a $19,536 difference.

» Almost 95 percent of the employers pay the HFTP dues for our members. A total of 87.1 percent of the employ-ees are covered with either full or par-tial hospitalization and 85.9 percent of the employers provide major medical benefi ts. The average number of weeks of paid vacation is at 2.97 days, and the average number of paid sick leave per year is at 6.68 days.

» In regards to retirement, 73.3 percent of the surveyed members have an employer-funded retirement plan.

» Of those who responded, 66.9 percent are employed in full service compa-nies, and another 7.8 percent are with limited service operations. Thirty-fi ve percent work for independent/partner-ships, and another 38.5 percent are with member-owned organizations.

» The largest location group of our members’ property is in a suburban area (40.5 percent). This is closely followed by 18.2 percent at down-town properties and 17.8 percent at resort properties. Most of the HFTP members have 100–300 rooms in their operations. The largest two groups are 201–300 (19.7 percent) and 100–200 (18.9 percent).

» The majority of HFTP members who are with clubs have 250–750 mem-bers, with 32.3 percent reporting to be in the 250–500 member group and another 25.4 percent in the 501–750 member group.

» The majority of HFTP members have 51–200 full-time equivalents with the 101–200 employee group reporting the highest percentage of 30.8 percent, and the 51–100 employee group coming in second at 20.7 percent. Sixty-three percent of the HFTP members super-vise less than six employees. Another 19.6 percent supervise between six to 10 employees.

» The percentage of HFTP members who have responsibility for the em-ployees in the accounting/fi nance de-partment increases from 78 percent to 87.4 percent, close to a 10 point jump. In the I.T. department, the increase is even more marked, from 48 percent to 65.7 percent, a 17.7 percentage point difference.

I. EXECUTIVE SUMMARY


The methodology used in this research is a survey design, with a stratifi ed sampling

technique. The survey used in 2000 was only slightly modi-fi ed so that the results could be

compared over time, establishing a trend for further information and analyses in the future.

The entire membership of over 4,000 was stratifi ed into hoteliers, country clubs and others, where a random yet weighted sample was chosen from each sub-group to ensure proportional representation. A total of 861 surveys were sent out in May and 272 were returned, yielding an impressive response rate of 31.7 percent.

As one can understand the diverse nature of the hospitality business, our respondents hold many different titles. To

II. INTRODUCTION

Of the respondents, 45.5 percent work in the club industry with an additional 1.9 per-cent working for club management companies. The second largest group, of course, is the hotel members where 20.1 percent are with hotels, 14.2 percent are with hotel management companies, and 9 percent with resorts. The remainder of the respondents are with casinos or riverboat casinos, consulting fi rms, convention centers, CPA fi rms, restaurants and others. This is very comparable to the results of 2000.

ensure comparability to the previous 2000 survey, the same categories were used in all questions to solicit responses. While the issue of comparability is secured, the validity of certain numbers was a bit com-promised. For example, if there is only one respondent is a certain sub-group, then that one person’s opinion or answer will be reported as that of the entire sub-group. On the contrary, this will not be an issue for sub-groups such as “controllers,” as there are enough respondents within that particular sub-group in the sample.

A summary of the results is provided in the following tables and charts. The report also includes analyses of certain sub-groups, comparing this year’s results with those of 2000, and highlights the signifi cant similarities and differences.

Restaurants 1%

Other 2%

Casino/Riverboat 1%

Hotel Mgmt. Co. 14%

Club 45%

Resorts 9%

Hotel 20%

CPA Firm 2%

Convention Center 2%

Consulting Firm 2%

Club Mgmt. Co. 2%

Table 1. Part of the Hospitality Industry

III. PROFILE OF THE REPSONDENTS

IndustryPercent of Respondents

Casino/River Boat Casino 1.1

Club 45.5

Club Management Company 1.9

Consulting Firm 1.5

Convention Center 2.2

CPA Firm 1.9

Hotel 20.1

Hotel Management Company 14.2

Resorts 9

Restaurants 0.7

Other 1.9

The Bottomline 11

Almost 80 percent (79.7 percent) of the respondents work in positions related to fi nancial management with the controller/comptroller being the largest group (54.3 percent). A total of 5.5 percent have technology-related positions such as I.T. director, CIO, MIS manager or regional/area I.T. manager. This is slightly different from the 2000 results in that 89 percent of the respondents in the 2000 survey had fi nance-related positions. Moreover, 10 percent of the respondents have titles such as director of fi nance, fi nancial manager, business manager, associate director of accounts receivable, business assurance manager, director of the audit department, fi nancial analyst, managing director, and vice president of asset management. This can be an indication that the HFTP membership is becoming more diverse, truly refl ecting the name of the association.

Job TitlePercent of Respondents

Accounting Firm Mgr. 0.4

Accounting Mgr. 2.2

Administrative Mgr. 0.7

Assistant Controller 6.7

Auditor 0.4

CFO 7.1

CIO 0.7

Consultant 1.1

Controller/Comptroller 54.3

Corporate Controller 4.1

I.T. Director 2.6

General Mgr. 1.1

Human Resource Mgr. 0.7

Partner 0.4

President/Owner 0.4

Regional Controller 1.9

Regional/Area IT Mgr. 0.4

Sales/Marketing Rep. 0.4

V.P. Finance 2.6

V.P. Info Services 0.7

MIS Mgr. 1.1

Other 10

Table 2. Job Title

Accounting Mgr. 2%

Assistant Controller 7%

Other 20%

Controller/Comptroller 54%

V.P. Finance 3%

CFO7%

I.T. Director 3%

Corporate Controller 4%

Table 3. Length of Employment in the Hospitality ProfessionThe average respondent has been in the hospitality profession for 14.4 years.

Accounting Mgr.

Administrative Mgr.Assistant Controller

Human Resource Mgr.

General Mgr.I.T. Director

Comptroller/Controller

ConsultantCIO

CFO

Auditor

0 5 10 15 20 25

President/Owner

Regional ControllerRegional/Area I.T. Mgr.

MIS Mgr.V.P. Info Services

V.P. Finances

Sales Marketing Rep.

Corporate Controller

Job TitleAverage No. of Years

Accounting Mgr. 12.5

Administrative Mgr. 15


Auditor 5

CFO 15.42

CIO 24

Consultant 17.33

Controller/Comptroller 14


I.T. Director 14

General Mgr. 15


President/Owner 16


Regional/Area I.T. Mgr. 12

Sales/Marketing Rep. 12

V.P. Finance 21.57

V.P. Info. Services 13

MIS Mgr. 9


Administrative Mgr.

AuditorAssistant Controller

Accounting Mgr.

CFO

Consultant


Controller/Comptroller

CIO

Partner

Regional Controller

V.P. FinancesSales/Marketing Rep.

Regional/Area I.T. Mgr.

President/Owner

V.P. Info ServicesMIS Mgr.


0 2 4 6 8 10

Human Resource Mgr.

Table 4. Length of Employment in the Hospitality Financial or Technology ProfessionThe average respondent has been in the hospitality fi nancial or technology profession for 17.76 years. While this is similar to the 2000 results, this also suggests that the respondents were in fi nancial or technology positions before they began working in the hospitality business.


Accounting Firm Mgr. 18




Auditor 15

CFO 22.63

CIO 21.5

Consultant 14



I.T. Director 13.83

General Mgr. 5

Partner 15

President/Owner 20




V.P. Finance 24

V.P. Info. Services 17.5

MIS Mgr. 8

Accounting Mgr.

AuditorAssistant ControllerAdministrative Mgr.

Accounting Firm Mgr.

CFO

0 5 10 15 20 25

Consultant



CIO

Partner

Regional Controller

V.P. FinancesSales/Marketing Rep.

Regional/Area I.T. Mgr.

President/Owner



Table 5. Length of Employment in Current PositionThe average respondent has held his/her current position for 4.61 years. This again, is comparable to the 2000 survey. From the re-sults, the average years of experience as assistant controller is 3.06, controller is 5.28, regional controller is 2, and corporate control-ler is 4.05. This may suggest a timeline for the progression in the fi nance management career ladder. While it is interesting to note that the sales and marketing representative holds his/her position the longest, the reader may want to bear in mind that this only refl ects the input of one respondent.

A little over 81 percent of the respondents reported that their prior position was in fi nance and accounting. The average number of years in a prior position was 5.35. The majority of these prior positions are controllers (35.5 percent), followed by assistant controllers (12.1 percent), and accounting managers (6.2 percent). While the average respondent, as mentioned, has held his/her current position for 4.61 years, the 25–34 age group average is 3.27, the 35–44 age group average is 4.27, the 45–54 age group average is 6 and the 55 and Above age group average is 4.06 years.





Auditor 5

CFO 3.97

CIO 4.5

Consultant 2.67



I.T. Director 2.83

General Mgr. 6.67

Human Resource Mgr. 5

Partner 3

President/Owner 1

Regional Controller 2



V.P. Finance 3.89


MIS Manager 2.67

The Bottomline 13

IV. JOB RESPONSIBILITIES

When it comes to executive decisions where the respondents are members of the executive committee at their workplace, 58 percent noted positively. This is at the same level as

the 2000 survey. When this is subdivided by industry, 43.7 percent of the club re-spondents sit on the executive committee while the hotel group is at 72.6 percent. When it is subdivided by titles and job functions, 59.8 percent of the controllers/comptrollers are on the executive

committee as compared to the technology counterpart reporting at 35.7 percent.As for the purchasing decisions, 25 percent of the respondents are direct decision mak-

ers. This is also at the exact same level as the 2000 results. In addition, 19 percent are involved in the fi rst level, 14 percent in research and recommendation, 13 percent in fi nancial advice, another

13 percent as part of a team management process, and 6 percent give technical advice. Thus, 90 percent of the respondents are involved in some way in the buying decision process.

Table 6. Number of Hours Worked Per WeekThe average HFTP member works 48.76 hours per week, down from 50 hours two years ago. According to the results, only 22.18 percent of the respondents have a 50-hour or above work week. The majority, 72.8 percent have an over 45-hour work week, but less than 50; and the remaining 5.03 percent have a 40- to 45-hour work week.

Job TitleAverage No. of Hours



Administrative Mgr. 45


Auditor 45

CFO 50.31

CIO 57.5

Consultant 53.33



I.T. Director 50.71

General Mgr. 50


Partner 45

President/Owner 70



V.P. Finance 53.93

V.P. Info Services 40

MIS Mgr. 50

0 10 20 30 40 50 60 70MIS Mgr.

V.P. Info ServicesV.P. Finance

Sales/Marketing Rep.Regional Controller

President/OwnerPartner

Human Resource Mgr.General Mgr.I.T. Director

Corporate ControllerController/Comptroller

ConsultantCIOCFO


Accounting Mgr.Accounting Firm Mgr.

FirstLevel 19%

Research &Recommend

14%TechnicalAdvice 6%

NotInvolved

10%Decision-Maker

25%

TeamManagement

13%

FinancialAdvice 13%

Buying Decision Process

Avg work hours per week for controllers

Club 46.37

Hotel 51.25


Table 7. Professional DesignationsThe table to the right shows the percentage of HFTP members holding professional certifi cations. The overall percentage of 13 percent holding CHAE and 5 percent hold-ing CHTP in 2000, has increased to 13.9 percent and 7 percent respectively in 2002. This suggests that the membership sees the value in the two certifi cations offered by the association. The table below breaks down the percentage of CHAE and CPAs among controllers.

Job Title CHAE CHTP CPA CMA CHA

Overall 13.9 7 18.3 0.7 0.7

Accounting Firm Mgr. 0 0 100 0 0

Accounting Mgr. 33.3 16.7 66.7 0 0

Administrative Mgr. 0 0 0 0 0

Assistant Controller 0 0 0 0 0

Auditor 0 0 100 0 0

CFO 21.1 10.5 31.6 0 0

CIO 0 0 0 0 0

Consultant 33.3 33.3 0 0 0

Controller/Comptroller 13 2.7 20.5 0 1.4

Corporate Controller 36.4 9.1 0 9.1 0

I.T. Director 0 57.1 0 0 0

General Mgr. 0 0 0 0 0

Human Resource Mgr. 0 0 0 0 0

Partner 0 0 100 0 0

President/Owner 0 100 0 0 0

Regional Controller 20 0 0 0 0

Regional/Area I.T. Mgr. 0 0 0 0 0

Sales/Marketing Rep. 0 0 0 0 0

V.P. Finance 0 14.3 28.6 0 0

V.P. Info Services 0 100 0 0 0

MIS Mgr. 0 33.3 0 0 0

Table 8. Experience in Management Level PositionsThe table (left) and graph (below) indicate that most HFTP members have had fi ve years of experience in management level positions.

Accounting Mgr.


Accounting Firm Mgr.

CFO

Consultant

EducatorI.T. Director


CIO

Partner

Regional Controller

V.P. Finances

Sales/Marketing Rep.Regional/Area I.T. Mgr.

President/Owner



General Mgr.Human Resource Mgr.

Staff AccountantSystem Mgr.

Other

0 2 4 6 8 10


Accounting Firm Mgr. 5.19




Auditor 3.66

CFO 7.33

CIO 4

Consultant 3.25



I.T. Director 5.25

Educator 10

General Mgr. 3.04


Partner 3

President/Owner 8



Sales/Marketing Rep. 2.9

Staff Accountant 4.25

System Mgr. 3.19

V.P. Finance 5.6


MIS Mgr. 4.47

Other 5.23

Controllers % CHAE % CPA

Club 11 27

Hotel 15 8

The Bottomline 15

Table 9. Employment ContractSimilar to the 2000 results where 11 percent of the respondents reported having an employment contract, 11.4 percent reported posi-tively in 2002. For controllers, 12.3 percent said that they have an employment contract, and for I.T. directors, 14.3 percent reported that they have a contract.

Job Title Yes No

Overall 11.4 88.6

Accounting Firm Mgr. 100 0

Accounting Mgr. 0 100

Administrative Mgr. 0 100

Assistant Controller 5.6 94.4

Auditor 0 100

CFO 21.1 78.9

CIO 0 100

Consultant 33.3 66.7

Controller/Comptroller 12.3 87.7

Corporate Controller 0 100

I.T. Director 14.3 85.7

General Mgr. 66.7 33.3

Human Resource Mgr. 0 100

Partner 0 100

President/Owner 100 0

Regional Controller 0 100

Regional/Area I.T. Mgr. 0 100

Sales/Marketing Rep. 0 100

V.P. Finance 0 100

V.P. Info. Services 0 100

MIS Mgr. 0 100

Table 10. Perpetual Employment ContractOf all the various job titles, seven cat-egories and a total of 14 respondents (5.1 percent) reported having perpetual contracts with their organization.

Job Title Yes

Overall 14


Assistant Controller 1

CFO 3

Consultant 1

Controller/Comptroller 6

I.T. Director 1

General Mgr. 1

President/Owner 0

Job TitleMulti-Year

Renew Annually

Other

Overall 4 21 6

Accounting Firm Mgr. 0 0 1

Assistant Controller 1 0 0

CFO 0 4 0

Consultant 0 1 0

Controller/Comptroller 3 13 2

I.T. Director 0 0 1

General Mgr. 0 1 0

President/Owner 0 0 1

Table 11. Type of Employment ContractBesides a perpetual employment contract, four (1.5 percent) individuals have multi-year con-tracts, 21 (5.9 percent) have contracts that are renewed annually, and six (1.8 percent) have other terms. In addition, 96 (35.3 percent) have letters of agreement while 10 (3.6 percent) have letters of separation.

0 20 40 60 80 100

No Yes

MIS Mgr.V.P. Info Services

V.P. FinanceSales/Marketing Rep.

Regional/Area I.T. Mgr.Regional Controller

President/OwnerPartner

Human Resource Mgr.General Mgr.I.T. Director

Corporate ControllerController/Comptroller

ConsultantCIOCFO


Accounting Mgr.Accounting Firm Mgr.


Table 12. Performance EvaluationsOf the respondents from 2000, 70 percent received written performance evaluations while 76 percent are reported for 2002, an increase of 6 percent. Since most of the respondents are controllers at hotels and clubs, 56.8 percent of the evaluations are performed by the general managers. Presidents and owners are also very active in this process, completing 10.8 percent of the evaluation. The controllers, regional controllers, and CFOs are also integral partners in this important process.

Treasurer 1% AdministrativeManager 1%

President/Owner 11%

General Manager

57%

V.P. Finance 1%


10%

RegionalController 2%

Partner 2%

CFO 9%

Other 6%

Position

Adm

. Mgr

.

Aud

itor

CIO

Con

t.

GM

Par

tner

Reg

. Con

t.

V.P.

Fin.

MIS

Mgr

.

CF

O

Cor

p. C

ont.

Pre

s/O

wn

Trea

sure

r

Accounting Firm Mgr. 0 0 0 0 0 0 0 0 0 0 0 100 0

Accounting Mgr. 20 0 0 40 40 0 0 0 0 0 0 0 0

Administrative Mgr. 0 0 0 0 100 0 0 0 0 0 0 0 0

Assistant Controller 0 0 0 87.5 0 0 6.3 0 0 6.3 0 0 0

Auditor 0 0 0 0 0 100 0 0 0 0 0 0 0

CFO 0 0 0 0 40 6.7 6.7 0 0 0 0 33.3 6.7

CIO 0 0 0 0 100 0 0 0 0 0 0 0 0

Consultant 0 0 0 0 0 0 0 0 0 0 0 50 0

Controller/Comptroller 1.7 0.8 0 0 84.2 0 0.8 0 0 6.7 0.8 1.7 1.7

Corporate Controller 0 0 0 0 22.2 0 0 0 0 33.3 0 33.3 0

I.T. Director 0 0 14.3 0 0 0 0 0 14.3 42.9 0 14.3 0

General Mgr. 0 0 0 0 0 0 0 0 0 0 0 100 0

Human Resource Mgr. 0 0 0 0 100 0 0 0 0 0 0 0 0

Partner 0 0 0 0 0 100 0 0 0 0 0 0 0

Regional Controller 0 0 0 0 0 0 0 0 0 0 25 75 0

Reg/Area I.T. Mgr. 0 0 0 0 0 0 0 100 0 0 0 0 0

Sales/Marketing Rep. 0 0 0 0 100 0 0 0 0 0 0 0 0

V.P. Finance 0 0 0 0 0 0 0 0 0 50 0 25 0

V.P. Info. Services 0 0 0 0 0 0 0 0 0 0 0 100 0

MIS Mgr. 0 0 0 100 0 0 0 0 0 0 0 0 0

The Bottomline 17

se trend is noted for salary and deferred income. Although a decrease is recordedmount of bonus in 2001, it is projected that the bonus level will scale back up andpass the amount received at 2000 of $8,837 to a level of $9,761. In regards to an

annual bonus, 78 percent of the respondents reported that they receive one and 59.6 percent said that their salary is negotiable. Tables 13, 14, and 15 (page 22) detail the salary, deferred income and bonus for the various job titles in 2000, 2001 and 2002 (projected) respectively.

l respondents, the 2000 average base salary is $63,651. The CHAE holders reported f $67,845 while the non-CHAE respondents’ average was at $62,891. This trend not r 2001 and 2002 (projected), but also for the CHTP designation. In 2000, the CHTPaverage salary of $77,472 while the non-CHTP respondents’ average was $62,540.

This difference in 2002 (projected) is even more noticeable. For 2002, it is projected that the CHAE respon-dents will receive an average base salary of $76,870, which is $7,124 more than the non-CHAEs ($69,746). The CHTP’s advantage is even more in that the projected CHTP 2002 base average will be $89,024 while the non-CHTP’s will be $69,488, a $19,536 difference.

V. COMPENSATION

$0

$8,000

$16,000

$24,000

$32,000

$40,000

$48,000

$56,000

$64,000

$72,000

$80,000

Bonus

Deferred

Salary

2002

2001

2000

$70,741

$8,441

$9,761

$63,651

$7,216

$8,837

$67,208

$7,683

$6,958

All RespondentsCHAE CHTP

Yes No Yes No

2002 Average Base Salary $76,870 $69,746 $89,024 $69,488



Controllers/ComptrollersCHAE CHTP

Yes No Yes No




Average Compensation for 2000–2002

Salary Comparison of Those With the CHAE or CHTP, to Those Without

Bonus 2002 2001 2000

Club $4,603 $4,543 $4,065

Hotel $11,735 $11,567 $14,860

Salaries 2002 2001 2000

Club $63,852 $60,459 $56,923

Hotel $70,612 $67,200 $63,586

Deferred 2002 2001 2000

Club $3,980 $3,778 $3,512

Hotel $15,500 $16,400 $10,144

Compensation Comparison of Hotel and Club Controllers


Source of Bonus Average %

Profi t 21.3

Holiday Fund 13.4

Increased Sales 2.6

Guest Satisfaction 3.3

Meeting Budget Goals 12.4

Meeting Personal Goals 14

Board/Executive Committee 16.6

Table 16. Bonus DeterminationThe table below shows the various methods used to determine bonuses. The bonus criteria is slightly more objective than subjective, with 55.7 percent considered objective and 43.3 percent considered subjective.

Job TitleBaseSalary

DeferredComp

Bonus

Accounting Firm Mgr. $84,000 — $5,000

Accounting Mgr. $50,100 $4,500 $1,245

Administrative Mgr. $45,500 — $3,000

Assistant Controller $53,226 $1,925 $5,313

Auditor $70,000 $10,000 $8,000

CFO $97,211 $9,583 $22,306

CIO $85,000 $10,000 $15,000

Consultant $71,667 $15,000 $7,250

Controller/Comptroller $66,427 $7,676 $7,641

Corporate Controller $81,655 $15,250 $14,536

I.T. Director $80,379 $8,675 $23,300

General Mgr. $47,750 — $16,333

Human Resource Mgr. $53,000 — —

Partner $90,000 — $5,000

President/Owner $260,000 $100,000 $120,000

Regional Controller $75,500 $10,000 $11,375

Reg/Area I.T. Mgr. $96,500 — $9,650

Sales/Marketing Rep. $78,000 — $38,000

V.P. Finance $113,000 $27,500 $22,775

V.P. Info Services $76,500 — $12,000

MIS Mgr. $49,333 — —

Job TitleBaseSalary

DeferredComp

Bonus

Accounting Mgr. $48,692 $4,500 $1,125



CFO $92,058 $8,119 $11,476

CIO $92,000 $10,000 $10,000

Consultant $65,000 $8,750



I.T. Director $77,714 $13,000 $14,667

General Mgr. $46,500 — $20,500

Human Resource Mgr. $52,500 — —

Partner $85,000 — $9,500

President/Owner $150,000 $160,000 $100,000


Regional/Area IT Mgr. $96,500 — $7,500

Sales/Marketing Rep. $68,000 — —

V.P. Finance $107,333 $21,000 $16,750

V.P. Info Services $71,500 — —

MIS Mgr. $48,525 — —

Job TitleBaseSalary

DeferredComp

Bonus

Accounting Mgr. $46,000 $4,000 $2,533



CFO $86,313 $8,100 $13,042

CIO $80,000 $15,000 $10,000

Consultant $65,000 $4,000



I.T. Director $74,764 $25,500 $16,700

General Mgr. $48,000 — —

Human Resource Mgr. $48,000 — $31

Partner $75,000 — $9,500

President/Owner $150,000 $200,000 $100,000


Regional/Area IT Mgr. $92,000 — $12,000

V.P. Finance $116,000 $18,500 $22,400

V.P. Info. Services $67,500 — $10,000

MIS Mgr. $44,500 — —

Table 13. 2002 Projected Salary and Compensation Table 14. 2001 Salary and Compensation

Table 15. 2000 Salary and Compensation

The Bottomline 19

Table 17. HFTP Related Expenses Paid by EmployerAn association is only successful if its members are active. In today’s economy, being active is an expense. Therefore, one of the important benefi ts for HFTP members is the level of support that they receive from their employers. As seen in the table and graph below, 94.7 percent of the employers pay HFTP dues. This is another milestone because it was only 89 percent in 2000. Employ-ers also increased their support on chapter dues from 62 percent in 2000 to 69.5 percent in 2002.

VI. EMPLOYEE BENEFITS

0 20 40 60 80 100

Other HFTP Expenses

Publications, Media

Chapter Scholarship

Foundation Scholarship

Certification Expenses

Professional Magazines

Professional Development

HITEC—Spouse

HITEC—Self

nnual Convention—Spouse

Annual Convention—Self

Chapter Dues

HFTP Dues

ExpensePercent Response

Avg Amt

HFTP Dues 94.7 $246

Chapter Dues 69.5 $119

Annual Convention—Self 33.8 $1,446

Annual Convention—Spouse 2.6 $1,375

HITEC—Self 19.5 $1,252

HITEC—Spouse 0.8 $500

Professional Development 25.9 $954

Professional Magazines 19.5 $241

Certifi cation Expenses 16.5 $313

Foundation Scholarship 2.6 $28

Chapter Scholarship 1.5 $50

Publications, Media, Videos 7.5 $284

Other HFTP Expenses 32.4 $960

Benefi tsPercentResponse

Avg Value

Housing Allowance 1.1 $13,100

Business Travel Allowance 18 $2,087

Parking 28.5 $1,220

Subsidized Commuting 3.7 $1,456

Maternity Leave 6.4 $12,800

Paternity Leave 2.6 $3,000

Charitable Contrib. Matched 2.2 $785

Financial/Broker Fees 1.5 $175

Interest Free Loans 1.9 $25,000

Sabbatical Leave 0.7 $5,650

Meals at Facility — Self 68.2 $1,266

Meals at Facility — Family 12.4 $1,493

Car Allowance 6.4 $4,279

Child Care 0.4 $1,400

Adult Day Care 0 —

Legal Services 0.7 —

Stock Options 3.7 $9,800

Club Membership for You 11.2 $2,309

Club Membership for Family 4.9 $2,318

Health/Fitness Center Use 15 $905

Golf 24.7 $1,940

Mobile Phone 28.8 $752

Home Computer 9.7 $1,826

Home Internet Access 7.1 $336

Guarantee Sale Price—Home 0 —

Credit Union 11.2 —

Employee Assist. Program 12.4 $235

Table 18. Benefi ts Paid by EmployerThe table below itemizes the general allowances and values of the benefi ts paid by the employers.

Percentage of Respondents


Table 19. Medical Plan Expenses Paid by EmployerMedical plan expenses paid by employers for both the employees and their family are outlined in the table below. A total of 87.1 percent of the employees are covered with either full or partial hospitalization and 85.9 percent of the employers provide major medical. This has increased from 76 percent hospitalization and 79 percent major medical in 2000. It is also interesting to note that 39.3 percent of the respondents report that their employers offer cafeteria type benefi t plans, and about half (51 percent) of such plans are for health insurance only.

Employee Family

Item % Full % Partial % Full % Partial

Hospitalization 39.1 48 28.6 46.1

Major Medical 38.3 47.6 27.8 44.9

Disability—Short Term 35.1 21.8 10.2 11.2

Disability—Long Term 39.8 24.9 10.7 10.2

Health & Accident 27.6 30.5 14.6 24.4

HMO 14.6 27.2 9.8 22.9

PPO 9.8 22.9 18.6 27.1

Life Insurance 62.1 24.5 15.5 14.1

Medical/Surgical 25.2 37.8 20 32.2

Medical Checkups 27.2 36.6 20.5 30.2

Dental Program 30.6 50.4 23.8 43.2

Vision Care 16.7 38.6 13.1 31.6

Prescription Drugs 32 56 24.3 45.6

Table 20. Out-of-Pocket Expenses Paid by EmployerBesides HFTP related expenses, medical and other benefi ts, employees often incur out-of-pocket expenses that may or may not be reimbursed by the employer as an employee benefi t. The table below presents these expenses and the percentage of the respondents who receive such benefi ts.

Of the respondents, 27.7 percent state that their current employer paid for travel and related expenses for their employment interview, and 25.7 percent also say that their cur-rent employer paid for moving expenses. This is at the same level as 2000.

The average dollar value for employer privileges extended to the respondents in 2001 was at $6,053, a $378 decrease from two years hence.

The average number of paid vacation is 2.97 weeks per year, and the average num-ber of paid sick leave per year is 6.68 days. Also, 35.2 percent of the respondents are allowed to carry forward all unused, paid vacation days and 53.2 percent are allowed to carry forward some. If paid sick days are not used, 21.4 percent of the respondents can carry all of them forward, 18.10 per-cent can carry some, but the majority, 60.5 percent, will lose the benefi t.

Regarding retirement, 73.3 percent of the surveyed members are provided with an employer-funded retire-ment plan. Of these, 86.5 percent are defi ned contribution/deferred compensation plan that is valued at about 5 percent of the salary. Another 13.1 percent are a defi ned benefi t plan that is averaged at 12 percent of the employee’s salary.

ExpensePercent of Responses

Investment Counseling 1.5

Dining Out Expenses 11

Legal Fees 0.8

Dry Cleaning 22.7

100% Medical Reimburse 2.3

Clothing Allowance 4.5

Interest-Free Loans 1.9

Tuition Assistance/CE 33.3

Table 21. Automobile Expenses Paid by EmployerAutomobile or its related expenses are sometimes provided as a benefi t to em-ployees. Of those surveyed, 4.9 percent say an automobile is provided, with 69.2 percent of these vehicles being owned and 30.8 percent of them being leased. Mileage, car insurance, gasoline, park-ing, maintenance, are also paid by some employers. Moreover, 5.3 percent of the surveyed individuals also say that their employer pays extra income tax on de-clared personal use.

ExpensePercent of Responses

Mileage 54.5

Insurance 4.5

Maintenance 4.5

Gasoline 8.9

Parking 19.1

The Bottomline 21

Table 22. Rating of CompanyAs seen in the table below, 66.9 percent of the respondents are employed in full service companies, and another 7.8 percent are with limited service operations.

VI. EMPLOYER PROFILE

IndustryFullService

LimitedService

AllSuite

Overall 66.9 7.8 1.6

Casino/Riverboat Casino 33.3 0 0

Club 60.8 0 0

Club Management Co. 80 0 0

Convention Center 60 0 0

Hotel 94.4 3.7 1.9

Hotel Management Co. 52.9 8.8 8.8

Resorts 87.5 8.3 0

Restaurants 0 50 0

Table 23. Ownership of CompanyThirty-fi ve percent of the respondents work for independent/ partnerships, and another 38.2 percent are with member owned organizations. This is a slight increase from 30 percent and 35 percent respectively from the 2000 results. Those who are with chain-related companies, however, see a slight drop from 20 percent in 2000 to 18 percent in 2002.

ChainRelated

18%

Other 9%

Independentor Partnership

35%

MemberOwned38%

Industry Affi liateChainOwned

ChainLeased

ChainFranchise

Indep/Partner

MemberOwned

Other

Overall 0.8 7.3 7.3 3.4 35.1 38.2 8

Casino / Riverboat Casino 0 0 0 0 50 0 50

Club 0.8 0 0 0 12.5 78.3 8.3

Club Management Co. 20 20 0 0 20 0 40

Consulting Firm 0 0 0 0 0 100 0

Convention Center 0 0 0 0 50 0 50

CPA Firm 0 0 0 0 80 0 20

Hotel 0 17.6 31.4 11.8 37.3 0 2

Hotel Management Co. 0 13.9 2.8 8.3 63.9 8.3 2.8

Resorts 0 16.7 8.3 0 70.8 4.2 0

Restaurants 0 0 0 0 100 0 0


Industry Dwntwn Resort Cntr City Hwy Suburb Airport Other

Overall 18.2 17.8 10.6 1.1 40.5 2.7 3.4

Casino/Riverboat Casino 0 33.3 0 33.3 33.3 0 0

Club 8.5 8.5 7.6 0 70.3 0 2.5



Hotel 40.7 11.1 16.7 1.9 13 11.1 5.6

Hotel Management Co. 20.6 11.8 14.7 0 29.4 2.9 5.9

Resorts 4.2 79.2 4.2 4.2 0 0 4.2


Table 24. General Location of FacilityIn regards to property locations, the largest group is located in the suburbs (40.5 percent). This is followed by 18.2 percent at downtown properties and 17.8 percent at resort properties. In regards to closure during the off-peak season, 18 percent say that their operations are closed, with the largest contingent being in Pennsylvania, Illinois and Maine. The average closure length is 1.72 months.

Table 25. Number of Sleeping RoomsMost of the HFTP members have 100–300 rooms in their operations. The largest two groups are 201–300 (19.7 percent) and 100–200 (18.9 percent). A little more than 10 percent of the respondents are with the bigger properties, with 7.4 percent having rooms of 1,001–1,500 and another 3.3 percent having over 1,500 rooms.

Industry

Les

sth

an 1

00

100–

200

201–

300

301–

400

401–

500

501–

750

751–

1,00

0

1,00

1–1,

500

Mor

e th

an 1

,500

Overall 23 18.9 19.7 9 4.9 7.4 6.6 7.4 3.3

Casino/Riverboat Casino 0 0 0 0 0 100 0 0 0

Club 92 4 4 0 0 0 0 0 0

Club Management Co. 0 0 0 0 0 0 0 100 0

Convention Center 0 33.3 33.3 0 0 0 0 0 33.3

Hotel 5.6 13 31.5 11.1 11.1 11.1 9.3 5.6 1.9

Hotel Management Co. 10 20 30 10 0 20 10 0

Resorts 4.2 33.3 8.3 16.7 0 8.3 4.2 16.7 8.3

Table 26. Club MembershipLooking at club membership fi gures, the overall picture is not much dif-ferent from that of 2000. The majority HFTP members are with clubs who have 250–750 members with 32.3 percent reporting to be in the 250–500 member group and another 25.4 percent in the 501–750 member group.

Only two restaurants and three casinos participated in the study, there-fore questions pertaining to restaurants and casinos in this section are not included in the tabulation.

Number of Members Percent of Clubs

Less than 250 6.9

250–500 32.3

501–750 25.4

751–1,000 13.8

More than 1,000 21.5

Less than 2507%

250–50032%

501–75025%

More Than1,00022%

751–1,00014%

The Bottomline 23

Table 27. Number of Full-Time Equivalents (FTEs)The table below presents the number of full-time equivalents in the club, hotel and resort industries. The majority of the HFTP member have 51–200 full-time equivalents, with the 101–200 employee group reporting the highest percentage of 30.8 percent, and the 51–100 employee group coming in second at 20.7 percent.

Industry

Les

s th

an 1

0

10–2

5

26–5

0

51–1

00

101–

200

201–

500

501–

1,00

0

Mor

e th

an 1

,000

Overall 2.3 5.6 8.3 20.7 30.8 18.4 6.8 7.1

Casino/Riverboat Casino 0 0 0 0 0 0 33.3 66.7

Club 0.8 6.7 13.3 36.7 35 7.5 0 0

Club Management Co. 0 0 20 20 20 0 20 20

Consulting Firm 50 50 0 0 0 0 0 0

Convention Center 0 0 0 0 60 20 0 20

CPA Firm 0 20 20 40 0 20 0 0

Hotel 1.9 1.9 1.9 9.4 35.8 37.7 11.3 1.9

Hotel Management Co. 5.7 5.7 5.7 2.9 20 20 8.6 31.4

Resorts 0 0 4.2 0 20.8 33.3 29.2 12.5

Restaurants 0 0 0 50 0 50 0 0

Industry

1 2-5

6-10

11-1

5

16-2

0

21-3

0

Mor

eth

an 3

0

Overall 9.6 53.5 19.6 6.9 3.5 2.7 4.2

Casino/Riverboat Casino 0 0 33.3 0 0 0 66.7

Club 7.6 76.3 11 3.4 0.8 0.8 0




CPA Firm 0 40 40 20 0 0 0

Hotel 12 34 28 14 4 4 4

Hotel Management Co. 11.1 50 25 2.8 5.6 2.8 2.8

Resorts 8.7 8.7 30.4 13 17.4 13 8.7


Table 28. Number of Employee SupervisedThe table below shows that 63.1 percent of the HFTP members supervise less than six employees. Another 19.6 percent supervise between six to 10 employees, and the remaining 17.3 percent have more than 10 employees.


Industry

1 2–5

6–10

11–1

5

16–2

0

21–3

0

Mor

eth

an 3

0

Overall 6.3 57.1 19.8 6.3 2.2 2.6 5.6

Casino/Riverboat Casino 0 0 0 0 0 0 100

Club 7.4 80.2 11.6 0.8 0 0 0




CPA Firm 33.3 0 0 66.7 0 0 0

Hotel 5.6 37 33.3 13 5.6 3.7 1.9

Hotel Management Co. 5.4 43.2 21.6 8.1 0 8.1 13.5

Resorts 4.2 16.7 37.5 12.5 8.3 4.2 16.7


Table 29. Number of Employees in the Accounting/Finance Department.In 2000, 50 percent of the respondents said that there were two to fi ve full-time employees in their accounting and fi nance depart-ment. This number has now increased to 57.1 percent, a 7.1 percent increase. The percentage of having six to 10 employees stays quite the same from 19 percent to 19.8 percent, while 16.7 percent have over 10 employees. Another dramatic increase is the per-centage of HFTP members who have responsibility for the employees in the accounting/fi nance department. This number increases from 78 percent to 87.4 percent, close to a 10 point jump.

2–5 Employees56%

21–30 Employees

3%

6–10 Employees20%

11–20 Employees

9%

Over 30 Employees

6%1 Employee

6%

The Bottomline 25

Table 30. Number of Employees in the I.T. DepartmentThe growth trend is also seen here for the I.T. department. In 2000, 38 percent of the members reported one employee in the I.T. department, and another 20 percent had two to fi ve people. In 2002, 56.9 percent have one employee, and 19.7 percent have two to fi ve people. HFTP members who have responsibility over I.T. employees also report an increase from 48 percent to 65.7 percent, a 17.7 percentage point difference.

Industry None 1 2-5 6-10 More than 10

Overall 14.2 56.9 19.7 3.2 6

Casino/Riverboat Casino 0 0 33.3 0 66.7

Club 24.4 65.6 10 0 0

Club Management Co. 0 40 60 0 0

Consulting Firm 0 66.7 33.3 0 0

Convention Center 0 20 40 20 20

CPA Firm 0 50 50 0 0

Hotel 11.6 69.8 16.3 0 2.3

Hotel Management Co. 6.1 42.4 24.2 15.2 12.1

Resorts 4.5 45.5 27.3 4.5 18.2

Restaurants 0 100 0 0 0

2–5 Employees20% None

14%

6–10 Employees3%

Over 10 Employees

6%

1 Employee57%


$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000

Health & Fitness Dir.

Sales/Marketing Mgr.

Employer Secretary

Office Mgr.

Accountant/Controller

Catering Mgr.

Dir. of Technology

Executive/Head Chef

F & B Director

Assistant Mgr.

General Mgr.

VIII. STAFF SALARIES

PositionAnnualSalary

BonusRoom &Board

OtherComp

General Mgr. $117,971 $22,418 $18,800 $10,589

Assistant Mgr. $61,818 $10,448 $6,167 $3,983

Food & Beverage Dir. $67,373 $10,443 $780 $5,644

Executive/Head Chef $70,210 $7,737 $1,500 $6,567

Dir. of Technology $58,997 $6,484 — $5,000

Catering Mgr. $47,626 $6,918 — $19,158

Accountant/Controller $66,013 $9,522 $890 $2,794

Offi ce Mgr. $38,311 $6,256 $2,240 $2,384

Employer Secretary $30,708 $2,293 $780 $2,182

Sales/Marketing Mgr. $65,800 $14,967 — $10,450

Health & Fitness Dir. $47,653 $7,000 — $25,500

PositionHourlyWage

BonusRoom &Board

OtherComp

Head of Maintenance $24.10 $4,809 $10,000 $3,029

Bar Manager/Head Bartender $12.32 $1,663 $2,000 $6,019

Wait Staff $7.19 $524 $2,000 $15,627

Bus Staff $7.06 $375 $2,000 $8,033

Cooks $11.56 $624 $2,000 $2,600

Housekeeping Staff $8.96 $663 $6,000 $1,966

Table 31. Staff Salaries and Bonuses

Table 32: Staff Wages and Bonuses

The following tables list staff salaries, hourly wages, bonuses, and other compensation in organizations employing HFTP members.

The Bottomline 27

IX. DEMOGRAPHIC INFORMATION

HFTP demo- graphics have been quite stable with 58.6 percent male members and 41.4 percent female. Most HFTP members have at least a bache-lor’s degree (54 percent) with 12 percent having a master’s degree.

Job Title Avg. No. of Years




Auditor 4

CFO 9.83

CIO 11.5

Consultant 9.33



I.T. Director 5.33

General Mgr. 10

Human Resource Mgr. 1

Partner 1

President/Owner 8



V.P. Finance 13.71

V.P. Info Services 1

MIS Mgr. 3.5

Other 8.08

Male59%

Female41%

GraduateStudies10%

Bachelor's54%

Master's12%

Some College15%

High School3%

AssociateDegree

6%

45–5431%

35–4445%

55–649%

25–3415%

Gender

Education

Age

Table 33. Length of HFTP MembershipThe average HFTP member has been with the organization for 6.93 years.


FEATURE • INTERVIEW

RALPH R. MILLER — A MAN OF LETTERS AND TITLESby Lou Cook

Ralph Miller, CA, CBV, CHA, CHAE

Ralph Remigius Miller is HFTP’s incoming secretary/treasurer and president of Inntegrated Hospi-

tality Management Ltd. Miller is also a CA (Chartered Accountant), a CBV (Chartered Business Valuator), a CHA (Certifi ed Hotel Administrator) and a CHAE (Certifi ed Hospitality Accounting Executive). He’s a pretty good cook too, but that’s in his off hours.

Born in Vancouver in 1957, Miller grew up in Kelowna in the interior of British Columbia (B.C.) and attended the University of British Columbia. Before acquiring his bachelor of commerce degree in accounting and management information systems in 1982, and before racking up a professional alphabet of certifi cations, Miller developed a taste for cooking and hospitality.

During high school and the fi ve years required for his bachelor’s degree, Miller worked in the hospitality industry. Most of his time was in the kitchen where he trained as a chef at a series of hotels. He spent three years at the Capri Hotel, one year at Hy’s Steakhouses, and worked at Delta Hotels. He did spend one year in night audit and segued to a stint in the banking industry. When referring to his many trades, Miller says, “Just call me Jack!” As he worked his way through school, hospitality’s odd hours were a good match for Miller’s schedule and knowing his way around hotel proper-ties and restaurant kitchens married his background to his future career.

Once he graduated, Miller joined Coopers & Lybrand in 1982 and began his apprentice or articling period, which he de-scribes as “slave labor.” The U.S. version of this process is comparable to becom-ing a CPA. When Miller had fi nished his articles in 1985, he passed the exam for Chartered Accountant and added the fi rst alphabetical appendage to his name.

From 1986 to 1987, Miller worked as an audit manager at Smith, Flynn Staley, Chartered Accountants before returning to Coopers & Lybrand. Over the next 10

years, he would be manager of the fi rm’s Hospitality Industry Practice, and then move into the role of principal in the fi rm’s Business Investigations Group. Miller says, “we umbrelled the hospitality industry practice, under the insolvency practice in order to leverage on the banker relationship side of the public practice.”

While at Coopers, Miller co-founded the Western Canada hospitality industry practice, which he ran for 10 years. There he honed his technical expertise and opera-tional experience in operations and asset management, sales and marketing strate-gies, fi nancing and valuation, reposition-ing, turnaround situations and brand selec-tion (and added a number of additional alphabetical appendages to his name).

By 1997, Coopers and Price Water-house were courting their merger, and Miller was ready to make his own move. Putting two decades of hospitality experi-ence together, he and some colleagues formed a spin-off company, Inntegrated Hospitality Management Ltd., or I.H.M. It was a tradeoff between risk and reward, and Miller says there’s not a day he regrets his move. “I love the fl exibility. It’s wonderful to be able to tell the boss [himself] to stick it anywhere you want.” In this case, “the boss” has industry expe-rience that has given him a unique insight in developing practical operational and fi nancial control systems.

I.H.M.’s philosophy recognizes that hospitality is not single faceted and can be complex and wide-ranging. A full-service property may involve restaurants, parking, valet, laundry, fi tness amenities, retail and more. I.H.M. tends to deal pri-marily with individual properties owned by absentee owners. Miller says, “We hire and manage the general manager within parameters that we set out and that are agreed to by the owners.” I.H.M. associates are industry pros, who work directly with the property on a daily basis, focusing all of the attention of the on-site management team towards achieving measurable results.

Miller describes HFTP as an outstanding organization, which has given him great value. “All the members are open and willing to share their experience about what is going on in their worlds. It’s an effective and helpful network for problem solving, since somebody will have seen your issue at least once.”

The Bottomline 29

In one of their longest projects, I.H.M. recently completed conversion of a 300-room, all-suite hotel in Calgary to become the fi rst Hawthorn Hotel & Suites in Canada. I.H.M. selected the brand and dealt with renovation issues. The project took fi ve years, because as Miller notes, “When you have to operate through it, you can’t do everything at once.” We upgraded throughout the property. “Often properties in need of repositioning are in that condition because they may not have received the benefi t of long term reinvestment,” Miller says. This particular property had been built as an apartment building, and I.H.M. retained the suites to fully use all of the existing asset. I.H.M. determined the Calgary market place could withstand a good all-suite product.

As “the gateway to the Rockies,” Calgary has a huge tourism business and is the second largest head offi ce center in Canada, which translates into corporate business. It’s also a good market for what is termed, extended stay. The oil business plays a signifi cant role in the area, and draws workers for stays as long as three to four months.

The owner of the Calgary Hawthorn property came to I.H.M. originally as a consulting client. Once Miller had developed a repositioning strategy for them, the client said, “Okay. You’re so smart, you do it.” Miller notes that many of his clients began their relationship with a consulting assignment, so this “Okay smart guy” attitude works well for I.H.M. The company’s associates have been affi liated with Howard Johnson, Holiday Inns, Choice Hotels, Westin Hotels and Wendy’s Restaurants, as well as Haw-thorn, Delta, and Hy’s of Canada.

I.H.M. has provided operations management and consulting services to a diverse range of clients located in B.C., Alberta, Saskatchewan, Manitoba and Ontario. Miller has done traditional limited-service, standard full-service and beverage-oriented properties mainly in B.C. and Alberta. Miller and his associ-

ates have gone as far as Jamaica and the Cayman Islands and has done some work in the United States in Arizona, Texas and Florida. However, he says plane travel to the eastern U.S. is “a killer.”

On the other hand, the hop between Calgary, Alberta and Vancouver, B.C. is an easy hour and 10 minutes, and Miller has just started a new consulting job in Calgary. He’s preparing an application for a new thoroughbred racetrack and casino with a possible future hotel. “That’s the beauty of what I do,” he says. “Every day is different; every challenge unique.”

His newest non-professional chal-lenge will be as HFTP secretary/treasurer. Miller joined HFTP in 1991. He has served as president of the British Co-lumbia Chapter, and his term on HFTP’s International Board has just expired. Miller describes HFTP as an outstanding organization, which has given him great value. “All the members are open and willing to share their experience about what is going on in their worlds. It’s an effective and helpful network for problem solving, since somebody will have seen your issue at least once.”

In addition to HFTP, Miller is chair-man for the Accounting Program Advi-sory Committee at Vancouver Community College and on the Membership Commit-tee of the Institute of Chartered Accoun-tants of British Columbia. He lives on the North Shore of Vancouver with his wife Lydia and two children, a son, 17, and a daughter, 8.

Cooking is his favorite pastime, and cookbooks fi ll his personal library. At last count he tallied 200, which are pulled out for research. Strangely enough, Miller does not have an elaborate, high-tech kitchen at home, but he does have a dream.

Ralph doesn’t yearn for James Bond’s Aston Martin, or Steve Forbes’ yacht. No, Ralph dreams about The Gallop-ing Gourmet’s stove. “I dearly want to have commercial grade equipment in my kitchen,” says Miller.

FEATURE • INTERVIEW

I.H.M.’s philosophy recog-nizes that hospitality is not single faceted and can be complex and wide-ranging. A full-service property may involve restaurants, parking, valet, laundry, fi tness ameni-ties, retail and more. I.H.M. tends to deal primarily with individual properties owned by absentee owners. Miller says, “We hire and manage the general manager within parameters that we set out and that are agreed to by the owners.”I.H.M. associates are industry pros, who work directly with the property on a daily basis, focusing all of the attention of the on-site management team towards achieving measurable results.

THE JOURNAL OF HOSPITALITY FINANCIAL AND ......2 October/November 2002THE JOURNAL OF HOSPITALITY FINANCIAL AND TECHNOLOGY PROFESSIONALS Volume 17, Number 7 8 HFTP LAUNCHES THE VIRTUAL

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