Chapter 1.1 the lodging industry

Hotel Industry

Hospitality industry is a part of service industryHOTEL

HOSPITALHOSTEL

Tour & Travels – Airways, Rail ways, Roadways. Water ways.

Hospitality industry works on Hotels & Tour & travels.

REASONS FOR TRAVELLING

There are 3 major categories for travelers:

Business travelersPleasure travelersGroup travelers

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Business travelRegular business travelers, is that segment of

the business travel market related to meetings and convention.


Pleasure travel

The specific segmentation of the pleasure travel market often depends on the attractions, products, and services offered by the destination area of lodging property.

Typical market segments include specialized resort travel, family pleasure travel, travel by the elderly, and travel by singles and couples. They are generally price-sensitive.


Group travelGroup travel is considered different from

business travel because some groups, such as organized tours, travel for pleasure.

Business travel related to meetings and conventions is commonly classified into 2 markets; institutional and corporate/government. Gatherings held by the institutional market are usually open to the public. (National conventions held by trade associations.)

Gatherings held by the corporate/government market are usually closed to the public. (Professional and technical meetings, training seminars.)


Classification of hotelsSizeLocationTarget marketLevel of serviceOwnership & affiliation


1) SIZE – No of rooms

There are generally four size categories for hotels;

Under 150 rooms 150 to 299 rooms 300 to 600 rooms More than 600 rooms


2) LocationDowntown hotelsSub-urban hotelsResort hotelsAirport HotelsMotels


Downtown hotels Commercial Hotels largest group of lodging properties cater primarily to business clients often located in downtown/business areas wide range of amenities usually have R/S, coffee shop, FDR may have cocktail lounge, laundry/valet service,

uniformed service, gift shops, medical services sometimes provide pools, health club mainly attract business travelers, individual

tourists, tour groups, small conference groups.


Airport Hotels located nearly airports may provide any level of service or

combination of amenities offer meeting facilities, limo services attract business travelers, and airline

passengers with delayed or cancelled flights.


Sub-urban Hotels All-Suite Hotelsone of the fastest growing segmentsmostly offer separate bedrooms and living

roomssuits may contain a kitchenette, a

refrigerator, and a bartypically located outside the city centerattractive for business travelers,

relocating/vacationing families


Resort Hotelsusually attract vacationerslocated in scenic area

(seashore/mountain, away from cities)easily accessible by plane, train,

automobile/busoften provide special activities for guests

(entertainment, shows, sport activities)can be classifies as condominium resorts,

urban resorts, casino resorts, all-inclusive resorts, and boutique resorts.


MotelsB&B Hotelsprovide accommodations and breakfast to

guestsbreakfast may range from a continental

breakfast to a rich buffet


Residential Hotels

offer principally long-term accommodationsusually offer housekeeping service, dining

room, R/S, rooms are similar to suites in designsmall F&B unitsoutside catering firms may provide food

servicerange from luxurious to moderate.


Casino Hotelsrooms and F&B operations support gambling

facilitiesfrequently offer entertainment, shows,

specialty restaurants offer flights/limo services in order to attract

guests


Conference Centers are designed specifically to handle group

meetings provide all the services/equipment for

handling meetings mostly offer overnight accommodations as

well as meeting facilities.


Convention Hotelsoffer extensive meeting space that attracts

meeting/convention groupscater both commercial and meeting travelersrequire specialized management expertise


4) LEVEL OF SERVICES

Service level is a measure of the benefits provided to the guest. The level of service is usually reflected in a guest’s room rate.

World-Class ServiceMid-Range ServiceEconomy/Limited Service


WORLD-CLASS SERVICETargets top business executives,

entertainment celebrities, high-ranking political figures, and wealthy clientele as their primary markets.

World-class hotel stresses personalized guest services and maintain a relatively high ratio of staff members to guests.

In some hotels, certain floors are designated to provide some of the hotel’s guests with world-class attention.


MID-RANGE SERVICE

Appeals to the largest segment of the traveling public including business people, individual travelers and families.

Often modest but sufficient. May offer uniformed guest services, airport

limousine service and food and beverage room service, as well as a specialty restaurant, coffee shop, and lounge that cater to visitors and hotel guests.

People planning small conferences, group meetings, and conventions may also find mid-range hotels attractive.


ECONOMY/LIMITED SERVICE

Provides clean, comfortable, inexpensive rooms and meet the basic needs of guests.

Appeals to budget-minded travelers, including families with children, bus tour groups, traveling business people, vacationers, retirees, and group of conventioneers.

Most may offer cable or satellite television, swimming pools, limited F&B service, playgrounds, small meeting rooms, and other special features.

They do not provide full F&B service.


5) OWNERSHIP AND AFFILIATIONIndependent HotelsChain HotelsManagement contractsFranchisingReferral groups


Independent Hotels

They have no relationship to other hotels regarding policies, procedures, marketing, or financial obligations. A typical example of an independent property is a family-owned-and-operated hotel.

The unique advantage of an independent hotel is its autonomy. An independent hotel, however, may not enjoy broad advertising exposure or management insight and consultancy of an affiliated property, and is unable to take advantage of the volume purchasing power of a chain hotel.


Chain HotelsChain ownership usually imposes certain

minimum standards, rules, policies, and procedures to restrict affiliate activities. In general, the more centralized the organization, the stronger the control over the individual property.

A chain is usually classified as operating under a management contract or as a franchise or referral group.


Management contracts

Management companies are organizations that operate properties owned by other entities.

Under this type of contract, the owner or developer usually retains the financial and legal responsibility for the property.

The Management Company usually operates the hotel, pays its expenses and in turn, receives an agreed-upon fee from the owner to developer.


FranchisingFranchising is simply a method of distribution

whereby one entity that has developed a particular pattern or format for doing business-the franchisor-grants to other entities-franchisees-the right to conduct such a business provided the franchisee follows the established pattern.


Referral groupsReferral groups consist of independent

hotels, which have banded together for some common purpose. While each property in a referral system is not an exact replica of the others, there is sufficient consistency in the quality of service to satisfy guest expectations. Best Western Int. Hotel is an example of a referral group.


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Sumit Manwal

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Chapter 1.1 the lodging industry

Education

hotels guest

convention hotels

business travel market

residential hotels

casino hotels rooms

group travel group travel

hotels tour travels

pleasure travel market