June 3, 2024

USALI 12th Revised Edition, Deep Dive: Rooms Department


In the very near future, the lodging industry will have a brand-new edition of the Uniform System of Accounts for the Lodging Industry (USALI) — the 12th Revised Edition. This latest release has been meticulously updated with guiding principles to enhance transparency in reporting, broaden data sets to better inform decision-making, and align with contemporary practices. 

To support the upcoming release, GFC members will be presenting a series of webinars. Be sure to register for the monthly “USALI 12th Revised Edition, Deep Dive” webinars running through September 2024. Accompanying the webinars are correlating blog posts, including this one which precedes the “Deep Dive: Rooms – Schedule 1” webinar taking place on June 6 at 11:00 a.m. CDT.

Fundamentally, the GFC focused on opportunities to create better visibility and clarity for the Rooms Department guidance in the 12th Revised Edition. This was achieved through several enhancements and clarifications for revenue categories and expense classifications to ensure consistency.

Rooms Segmentation

In terms of Rooms revenue, there was a desire from many constituents to gain more specificity on the types of room rates that are categorized in the respective segments. Specifically:

  • For the Discount segment, clarification was added that OTA discount, promotion and opaque channel rates that are available to the general public should be included.

  • For the Negotiated segment, added were specific references to the inclusion of consortia rates and government or government contractor rates are highlighted, along with room charges for other companies that negotiate rates to per diem.

  • For the Qualified segment, loyalty redemptions and offers outside of basic rates for loyalty program members are now specifically included.

Loyalty Program Costs

As it relates to loyalty, clarifications were added to make distinctions on the components of loyalty costs that may be incurred by a hotel, and where such costs should be classified. Loyalty Program Member Benefits provided only to loyalty program members (or specific tiers of loyalty program members) should be classified in a new account in Rooms – Schedule 1. This cost category is designed to capture services such as access to concierge lounge, room amenities (i.e., free water), Wi-Fi access, and more. Also, if the guest opts to receive points instead of other on-property benefits, such costs would be recorded in this Rooms line item. As they have traditionally, true service recovery costs will be recorded in the Administrative and General department, while expenses relating to loyalty program stays for points earned and special loyalty promotions remain in the Sales and Marketing department.

Executive Lounge

Another area where greater visibility is introduced is the Executive Lounge. Where material, revenues associated with the purchase of access to these types of designated private spaces are recorded in this component of Other Rooms Revenue. This amount is determined based on the upcharge or premium charged to access the space, while ancillary revenues generated by alcohol sales or meeting room rental associated with the lounge should be recorded in separate departments, as applicable.

Executive Lounge — Schedule 1-1 has been created to reflect a componentized allocation of operating expenses attributable to a lounge operation. Executive Lounge Expense presented in the Rooms Department reflects the proportion of the costs for the Executive Lounge associated with paying customers, while the balance is allocated to the above-mentioned Loyalty Program Member Benefits. Schedule 1-1 is intended to capture those material costs associated with the Executive Lounge with cost categorizations that should allow for correlation to food and beverage operating costs, such that allocations should be achievable without undue burden. Also, new Executive Lounge staffing titles have been included in this schedule.

In-Room Entertainment

These costs will no longer be captured in Rooms and will be reflected in the Information and Telecommunications Department.

Optional Reporting

In addition to the required changes directly to the rooms department, certain updates have been made to clarify segmentation and channels for rooms revenue reporting, which are spelled out in Part V – Metrics, Operating Ratios, and Optional Schedules. This reporting includes subsegments for transient revenue reporting under five main categories: retail, discount, qualified, negotiated, and wholesale. There is another optional schedule that is defined to specify the rooms revenue delivered by each booking channel, whether that be through a direct property booking, voice, brand website or app, mirrored brand direct, GDS, OTA, or other channels.

Additional Changes and Guidance

It is important to note that this article provides a high-level summary of the changes from the 11th to the 12th Revised Edition. For a more comprehensive understanding of the changes, continue to participate in this “Deep Dive” by registering for the webinar series and reading the companion blog posts. Next up: “Energy, Waste, and Water – Sched 9.” And finally, the USALI website is your center for webinar archives, guidance articles, and other resources.

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