Hospitality Financial Leadership: Earned and Unearned Revenues – Understanding the Difference

David Lund | January 28, 2019

By David Lund Just like baseball has an unearned run as a scoring feature, in business we have unearned revenues. In this piece I will discuss the difference between earned and unearned revenue and how it applies to the hospitality business. First off though we need to review the American classic game of Baseball and how an unearned run works. This will be especially important for those of us who are not the sport's most avid fans. In baseball you score an unearned run when an official, the umpire, decides the player crossed home plate due to an error (mistake) by the defending team. A good example is: an outfielder drops the ball and t...