EXAMINING HOTEL MANAGERS’ FINANCIAL COMPETENCIES: EVIDENCE FROM FOUR-STAR HOTELS IN ADDIS ABABA

Abstract

In the current competitive business environment, hotel managers are required to develop a high level of financial competencies to deliver efficiency and effectiveness in their day-to-day activities, which contributes to organizational performance. However, expected hotel managers‘ financial competencies deviate from the actual competencies they acquired through experience and curricular training. As the hotel industry in Addis Ababa, Ethiopia, has experienced rapid growth in recent years, driven by economic expansion, increased conference tourism, and globalization, this research aims to examine what financial management competencies are considered important from the perspective of four-star hotel managers in Addis Ababa. Utilizing a descriptive research design with descriptive data analysis, the study included heads of departments and deputy supervisors from seven selected hotels. Primary data were collected through questionnaires from 72 hotel managers. The managers identified a set of important skills under six core financial competencies: demand forecasting, budgeting, pricing skills, revenue management, cost management, and asset management. Hotel managers and graduates are expected to build those skills and competency blocks to drive the organizational performance. Stakeholders, including educational institutions and hotel managements, need to collaborate in developing and delivering hotel managers‘ financial competencies that focus on the managers‘ objective contribution to the profitability of the Hotels.