Description: The Coronavirus story is lingering on. One industry that seems to be suffering is tourism, with travel agents and tourism operators bracing for a decline in activity lingering into 2021. An executive at the Hilton hotel chain estimates the company will be affected somewhere between $25 and $50 million.
Date: February 16, 2020
1) Would the coronavirus influence your travel plans? Do you know anyone who has changed travel plans because of it?
2) If you were an accountant employed by a hotel chain like Hilton, how would you develop an estimate for lost revenue from a situation like this?
3) Wiley’s Managerial Accounting : Tools for Business Decision-Making tells us on page 16 that the Hilton hotel chain uses a certain managerial accounting device to evaluate employee performance. What is this tool? What are its components?