The vast majority of hospitality establishments, however, are operated to
generate a satisfactory return on investment in the form of profits or excess
revenue. These profits are used to pay dividends to stockholders and are reinvested
by the organization to promote expansion and further development.
Even nonprofit hospitality operations, such as selected hospitals, nursing
homes, college or university hospitality operations, and government-run hospitality
operations must be concerned with marketing. Managers of nonprofit
operations must still understand the wants and needs of their consumers and
provide goods and services at a satisfactory level to as many individuals as possible.
A universal concern of all hospitality managers is the financial condition
of the organization. Whether a manager is trying to achieve a 20 percent
annual return on investment (ROI) or is instead aiming to break even on a
very limited budget, the overriding concern is still financial.