What does a revenue budget typically include?

A revenue budget is a financial plan that outlines the expected income from various sources over a specific period, typically focusing on sales. The main components of a revenue budget include anticipated sales figures, which provide an estimate of the revenue that will be generated from operations. This may include projections from room bookings, food and beverage sales, and other service offerings.

In addition to anticipated sales, the revenue budget often considers anticipated costs associated with generating that revenue; however, its primary focus is on income rather than expenses. Thus, the inclusion of both anticipated sales and anticipated costs underscores the budget's comprehensive nature in providing a forecasted financial picture for a hospitality or tourism business.

While employee wages and food costs, marketing expenses, and maintenance and renovation budgets are important aspects of financial planning, they pertain more to overall operational budgeting rather than specifically to the revenue budget. These elements attend to the costs and expenditures tied to running a business rather than the revenue side, which is why the selection of anticipated sales and anticipated costs aligns perfectly with the definition and purpose of a revenue budget.