Hotel Arctic automate the budgeting


Standard solution for hotel operations

Hotel Arctic is the world’s most northerly 4 star hotel also houses a 5-star conference center – both classified by Horesta in Denmark. Located 300 km north of the Arctic Circle is located in the first row to the Ilulissat Ice Fjord and appearing in UNESCO.

It offers incredible views of the ice fjord panorama of icebergs that glide majestically out of the fjord. The modern conference center in the magnificent surroundings attracts an increasing number of guests, including politicians and business leaders from around the world. This is incidentally also an incredibly good cuisine that makes use of many Greenlandic ingredients.

The environment is not just okay outside. Hotel Arctic has also invested in an environmentally friendly profile and has since 2000 had an environmental diploma Green Key. Last year they invested among other things in a solar panel of 240 m2, and since 2013 electricity supply come from a local hydroelectric plant. The hotel is 100% CO2-neutral.

Managing the hotel operations via Excel sheets

With an occupancy rate of 69%, it is important to be able to “predict” the number of future guests and their consumption patterns at the hotel and in the restaurant and conference center. Therefore had Hotel Arctic’s director Erik Bjerregaard, for some years developed an Excel sheet that, bl .a. based on weather forecasts / experience ratios and other hotel-specific factors could form the basis for some simple budgets and ratios. Excel worksheet contained all of the director and other members of management knowledge and experience about hotel management. Eventually as more was added in the Director’s Excel spreadsheet, it became harder and harder to grasp, and Erik Bjerregaard began to fear that all information one day could vanish at an improper operation.

'Around the year 2010, I had partly developed a valuable model in Excel, but it was also very difficult and fragile to work with, and the same numbers to be entered in several places. And when I wanted to pass on everything I know about hotel management, I was looking for a standard solution that would be easy to work with and understood by all and specially to be safe in use' says Erik Bjerregaard.

Toolpack make simulation sheet in budgeting

In the budgeting phase in Toolpack, it is possible to make a simulation sheet or scenario management, and it was precisely this that made it possible to create a future-proof solution that contains all parameters from Erik Bjerregaards original Excel spreadsheet. The result is a simulation model that keeps track of hotel operations, which include booking of rooms and conference center, restaurant, minibars etc.

'This super effective simulation sheet which also is suitable for shopping to the restaurant and staffing of the different key items are made with my input, where all my knowledge and experience is built into a super efficient system. It’s cleaned up the model we had, so we got what we wanted.'

'The fact that we have been able to put all this into our Toolpack model has been absolutely invaluable' says Erik Bjerregaard.

Monthly reporting of multiple layers

Besides simulation worksheet, which is specially designed for Hotel Arctic, is Erik Bjerregaard also using Toolpack month reports that are continuously sent to the hotel management and the board.

'All are super happy with the form that we are reporting, the recipient can easily click through to the level of detail he or she wants. My whole board is very pleased, and the owners receive each month presented the total input to group profit' he said.

The liquidity model is a huge plus

'Hotel Arctic has now also been able to develop cash budgets. It had always been an Achilles heel for us, but now we have an excellent overview of our current and future liquidity situation so that we can dispose of our cash. I must say it is a brilliant tool for forecast.'

If the owners ask for a prognosis for the rest of the year, Erik Bjerregaard just add amounts and assumptions in and click, and he has the results immediately.

Safe as Fort Knox

All our finance applies that the parameters and ratios that run after another have been developed in Toolpack, so it has now become much easier to make benchmarks in relation to production costs and labor costs in relation to revenue in each department.

'We are way down and measure revenue per employee in each department. And our model handles really many variables. It all feels as safe as Fort Knox, we are sure of the results when we changed things, and we know that everything is included in the spreadsheets.'

Excellent support

Erik Bjerregaard says that it is obviously not all Toolpacks features used equally frequently. 'When we at some point not be able to move forward in a function, we contacted Toolpack, and the same day we are sent a video clip that can run in the background. When we call our contact, we always get a fast and efficient answer. I can say without hesitation that Toolpack Solutions has shown great ability to get acquainted with our situation, and we feel in very good hands.'

When the director asked if he did not have any criticism, the answer comes immediately: No!

Embark on a journey to the north, if you ever get the opportunity then do not miss a visit to the Hotel Arctic – it is truly an experience beyond comparison!

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