Financial planning and budget management in hospitality and dining establishments: Navigating the financial landscape of the hotel and restaurant sector

Abstract

Currently, the hotel and restaurant industry is facing a challenging period due to economic and political instability and the consequences of the COVID-19 pandemic. Under these circumstances, the solution to the current issues in this industry requires an integrated approach to financial management that takes into account the specifics of the hotel and restaurant sector. Furthermore, the development of technologies and changes in consumer preferences also create new opportunities and challenges for financial management in the hotel and restaurant business. Therefore, effective financial planning and budget management are becoming crucial components of the successful operation of hospitality companies. The research findings indicate the negative impact of external factors on the financial sustainability of the hotel and restaurant industry in Ukraine. These factors include employee safety, changes in customer needs, a decrease in tourist flow, economic instability, etc. In this context, financial planning and budget management are becoming vital for adapti ng the hotel business to such conditions and ensuring stability. Despite the current challenges, the hotel and restaurant industry demonstrates high resource efficiency and the ability to quickly recover from crises. It is necessary to strengthen financial management and budget management strategies, including the rational allocation of resources, the search for funding sources, and the use of advanced financial mechanisms in order to adapt successfully to unpredictable conditions. In this context, financial planning serves as a key tool to mitigate market risks and minimize negative consequences. Financial planning will help to systematize management activities and achieve financial goals under unpredictable conditions.