ZBB – Zero Base Budgeting
What is the meaning / definition of Zero Base Budgeting in the hospitality industry?
Zero Base Budgeting can be abbreviated as ZBB. The term is used when the budgeting for hiring employees takes into account the occupancy expected for a specific time period or season. This is commonly used in seasonal hotels or in hotels where workers may be hired for a limited period of time (temporary contract) during the high season.
Another benefit to this is that an employee can be hired to do a specific job, like gardening, then laid off when the worker is not needed, like winter. This way hotels can save money as they are not having to supply employees with long-term contracts and are able to hire employees only for the necessary period of time.
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About the Author:
As CEO and Founder of XOTELS, Patrick Landman has made it his mission to turn hotels and resorts into local market leaders. XOTELSยด diverse expertise and deep-knowledge across revenue management consulting, hotel management, and hotel consulting, enables us to drive results for independent boutique hotels, luxury resorts, and innovative lodging concepts. Below you will find opinion articles written by Patrick Landman.