Cash Flow Analysis
The monthly financial data reveals a concerning operational pattern: the resort operates at a net loss in all months, with March particularly alarming at just €28,980 in revenue against over €73,000 in expenses. Revenue swings wildly from €49,438 in April to €27,627 in July—nearly 80% variance—yet total expenses remain stubbornly fixed around €71-73k regardless of business levels. Payroll dominates expenses at €29-52k monthly, but shows no flexibility to match demand, creating devastating losses during slow periods. The resort appears to operate with completely rigid costs despite highly seasonal revenue, suggesting critical needs for dynamic staffing models, better cost controls, and improved cash flow management to survive the volatile monthly swings.
Aug 25
Hotel Revenue
€33,330.01
Total Expenses
€52,758.29
Net Margin
-58.3%
Cash Flow Drivers
Understanding the components of revenue and expenses is critical for financial health. Payroll dominates expenses at 66.3%, followed by tax payments at 16.1%. Resort revenue constitutes 73.6% of total income, supplemented by tax refunds (16.6%) and investment income (9.8%). These spark charts show monthly trends for each category throughout 2025.
Average Monthly Expenses and Revenue by Category
Payroll
Average€40,410.91
66.26% of expenses
Tax
Average€9,800.97
16.06% of expenses
FX
Average€5,769.26
9.45% of expenses
Investment
Average€2,754.44
4.51% of expenses
Insurance
Average€1,132.45
1.86% of expenses
Maintenance
Average€1,132.02
1.85% of expenses
Resort Revenue
Average€27,739.38
73.64% of revenue
Tax Refund
Average€6,249.7
16.59% of revenue
Investment Income
Average€3,685.75
9.78% of revenue
Business Model Analysis
Based on the cash flow drivers analysis, ResortChain International seems to operate under all-inclusive package deals offered primarily to business clients. The main revenue is generated from the resort revenue, which constitutes 73.6% of total income, supplemented by tax refunds (16.6%) and investment income (9.8%).
Resort Revenue
Investment Income
Financial Health Analysis
We don't have enough data to make a definitive financial health analysis. From the current data, we can see that the resort has declining cash position by almost 30% since the beginning of the year. The costs are substantially and consistently higher than the revenue. If that trend is a continuation of previous months / years, then we can come to a conclusion that the resort is not financially healthy. However, in the scenario that the hotel just opened and is still in the ramp-up phase, then it is expected to have negative cash flow for the first few months.
Revenue Patterns Analysis
The heatmap reveals distinct seasonal and weekly patterns throughout 2024. May shows the strongest performance with consistent high-revenue days, particularly around the Monaco F1 Grand Prix weekend. Mid-week days (Tuesday-Thursday) consistently outperform weekends across most months, indicating a business-focused clientele. Notable dips appear in June-July, suggesting shoulder season challenges that require strategic intervention.
Revenue Heatmap by Day of Week
The revenue is distributed primarily during the week days, with a peak on Tuesday.
Average Revenue by Day of Week
Monday, Tuesday, and Wednesday are the highest revenue days
Daily Revenue with Holiday Correlations
Overlaying French bank holidays reveals critical insights. The highest single-day revenue (€8,969 on January 21) occurs on a Tuesday, which is not a holiday or weekend, indicating that there was a major conference or business retreat. In all other major French holidays, the revenue is minimal. Orthodox and Catholic Easter as well as Monaco GP weekends drive significant spikes, while the summer months show volatility despite holiday periods.
ResortChain Customer Profiles
The data reveals a mixed customer personas with both leisure and business clientele. The highest revenue days are around major events and holidays, while the summer months show volatility. The data also shows that the business is not insulated from local holiday cycles. My personal guess would be that the hotel is located in the South of France, close to the border with Italy and Monaco.
Forecast Analysis
Comprehensive analysis of forecast accuracy comparing multiple forecasting methods including ML models, statistical approaches, foundation models, and user-generated forecasts. The unified forecast represents the best available system forecast, while the unified forecast with user overrides incorporates verified manual predictions from the finance team.
Loading forecast analysis...
Final Recommendations
Based on the comprehensive analysis of cash flow patterns, forecast accuracy, and operational challenges, here are strategic recommendations to improve financial performance and operational efficiency.
Hire a small core team of permanent employees and supplement with seasonal workers during peak periods. This will align payroll costs (currently 66% of expenses) with revenue fluctuations.
Open investment accounts in multiple currencies and invest in short-term maturities or mutual funds to reduce foreign exchange fees (currently 9.5% of expenses).
Offer attractive package deals to non-business clientele during summer months to improve occupancy rates and offset the current revenue decline in June-July.
Implement demand-based pricing that adjusts rates around major events (Monaco GP, Easter) and during mid-week business travel periods to maximize revenue.
Arrange credit lines for volatile months and maintain cash reserves during predictable high-revenue periods to smooth out seasonal cashflow challenges.
Develop long-term agreements with corporate clients for guaranteed mid-week bookings, capitalizing on the 73.6% resort revenue concentration.
Expand beyond room bookings to include premium spa packages, event hosting, and conference facilities to reduce dependence on accommodation revenue.
Enhance finance team training on forecasting tools and techniques, as current user forecasts often worsen accuracy instead of improving it.
Create distinct service tiers for business vs. leisure clientele to better match offerings with customer expectations and optimize pricing strategies.
Data Quality Assessment
Comprehensive analysis of data quality, completeness, and consistency across transactions, balances, and forecasts. Understanding data quality is essential for making confident business decisions and identifying areas for process improvement.
Balance Reconciliation
Monthly comparison between transaction-calculated balances and daily snapshots. Deviations indicate potential missing transactions or data inconsistencies.
User Forecast Quality
Analysis of manually entered forecasts by the finance team, showing verification rates and data completeness.
System Forecast Coverage
Coverage analysis for ML and statistical forecasts across categories, identifying gaps where predictions are missing.
Transaction Data Quality
Detailed assessment of transaction data completeness, potential duplicates, and data distribution across categories.
Tools & Methodology
This comprehensive analysis was built using a modern stack of AI-powered tools and development frameworks. Here's a timeline of the tools and methodologies that made this report possible.
Claude Desktop
Claude Desktop
The analysis began with Claude Desktop, where I inserted the tasks and datasets to brainstorm and identify the key areas for analysis, lay down my thoughts and create the report structure. For me this is the most effective way to start rolling the ideas.
Claude provided strategic direction on which charts to create, what patterns to look for, and how to structure the comprehensive financial analysis for the luxury resort case study.
Cursor
Cursor
Cursor is my go to IDE for coding, it allows me to write code quickly and efficiently. I have set up cursor rules, connected MCP servers into Cursor for all my projects, including this one. Here, I created a Jupyter Notebook file to conduct all the analysis in Python. I like woring in separate code cells, put markdown comments to explain my thoughts and code.
When I was starting a big task for the analysis (e.g. Forecasting Analysis), I would create a new branch in the repository and work on it there. I used the 'Plan' mode of cursor to write down my thoughts, Cursor looked through my codebase to see what's possible and came back with suggestions or clarifications (that I wouldn't have thought of myself). Cursor is the best sparring partner I have ever had.
Wispr Flow
Wispr Flow
I poured my coffee, I sat down in front of my computer, I opened Cursor and saw that the Financial Forecasting was the next task on my list. Typing sometimes feels boring. It feels engineered. Not the best way to unravel your thoughts. But talking?
That's when I mostly used Wispr Flow. I just press three buttons on my keyboard, mic is activated, and I start talking explaining my thoughts, mentioning which files to use, finds them in Cursor and automatically puts them in context. And fun fact, I can walk around my apartmnent and talk to Wispr Flow, it will follow me around.
Perplexity
Perplexity
Perplexity was instrumental in conducting deep research queries to understand the luxury resort business model. I discovered that idle cash in luxury resorts is typically invested in short maturities or mutual funds with average returns around 3-4%.
Additionally, I researched all French holidays and neighboring country holidays to overlay on the revenue data and identify correlations. I also fetched the total expected revenue of luxury resorts in France to benchmark ResortChain International against market-wide monthly fluctuations.
Next.js App
Next.js App
The report was built as a Next.js app using TypeScript and Tailwind CSS, which allowed for rapid development and beautiful, responsive styling. This modern stack ensured optimal performance and an excellent user experience.
I leveraged component libraries from Shadcn, Visx (from Airbnb), and Tremor.so, along with custom enhanced libraries built on top of these foundations, to create visualizations and the interactive elements you see in the report.
MCP Servers
MCP Servers
Finally, I utilized MCP servers, specifically Context 7, to fetch the most up-to-date documentation for all the libraries used in this project. This ensured Cursor had the proper context to implement the frontend efficiently.
By integrating the latest documentation directly into the development workflow, I could quickly implement components following best practices and the most recent API patterns, significantly accelerating the development process.
Fun Section
Tired of reading through all those numbers and transactions? Take a break and restore your brain capacity with these memes below.
