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The Lodging Industry

1. The travel and tourism industry consists of five parts:

• Lodging operation
• Transportation services
• Food and beverage operations
• Retail stores
• Activities Managing Front Office Operations

2. The hospitality industry is part of the travel and tourism industry.

3. The hospitality industry consists of lodging; food and beverage operations; and
institutional food and beverage services.
• The Lodging Industry Hotels can be classified by:
• Size
• Target markets
• Levels of service
• Ownership and affiliation

Hotel Size Category

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

Target Market:

• Two of the most important marketing challenges for a lodging property are:
“Who stays at our property?” and “Who else can we attract?”
• Lodging properties seek to identify target markets.
• Target markets are distinctly defined groups of travelers that the hotel
seeks to retain or attract as guests.

Types of Hotel, Classified by Market Segment

• Commercial hotels
• Airport hotels
• Suite hotels
• Extended-stay hotels
• Residential hotels
• Resort hotels
• Bed-and-breakfast hotels
• Vacation ownership and condominium hotels
• Casino hotels
• Conference centers
• Convention hotels
• Alternative lodging properties (recreational vehicle parks, campgrounds,
mobile home parks, corporate lodging, cruise ships)

Commercial Hotel

• Located in the towns and cities they primarily serve
• Often located near train stations in the nineteenth and early twentieth
centuries
• Located in downtown or business districts today

business professionals Extended-Stay Hotel • Similar to suite hotels • Designed for travelers who stay five nights or longer • Usually do not provide food. travelers who enjoy homelike accommodations. vacationing families. guests who contract to live in a residential hotel are considered tenants . high-speed Internet access • Ergonomic desks and chairs • Fax machines • Car rental arrangements. airline passengers with travel layovers/canceled flights. saunas Airport Hotel • First airport hotels built in 1950s as air travel became popular • Airport hotels are built in major travel centers • Wide variety of sizes and levels of service • Target markets: business travelers. replaced in part by suite and condominium hotels • Guest quarters generally include a sitting room. • Largest group of hotels Commercial Hotel Guest Ammenities • Complimentary newspapers • In-room coffee makers • Free local calls • Cable television. banquet meal service • Laundry/valet service • Concierge service • In-room refreshment centers • Retail stores • Pools. or uniformed/valet services • Housekeeping services may not be provided on a daily basis • Homelike atmosphere • Room rates often determined by the length of a guest’s stay Residential Hotel • Provide long-term or permanent accommodations in urban or suburban areas • Located primarily in the United States • Declining in popularity. guestroom suites. room service. video games • Personal computers. bedroom. health clubs. tennis courts. and kitchenette • In some states. and airline personnel • Many feature conference rooms • Offer convenience. DVD players/DVDs. airport pick-up services • Twenty-four-hour food service • Semi-formal dining rooms. cocktail lounges • Conference rooms. beverage. cost savings Suite Hotel • Fast-growing segment of the lodging industry • Feature guestrooms with a living room or parlor area and a separate bedroom • Some guestrooms include a kitchenette • Generally have fewer/more limited public areas than other hotels • Target markets: people relocating to area.

art. they can have the hotel’s management company rent their units for them. the company is free to rent the unit for the remainder of the year • A portion of the rent from the unit goes to the unit’s Casino Hotel . culture. special interests. and room services • Typically feature a leisurely. instead of the multiple owners typical in vacation ownership hotels • Owners tell the management company when they want to occupy their units. receiving the rental money after paying fees to the management company for this service • Owners can trade their ownership time with other owners in other locations • Each unit has multiple owners Condominium Hotel • Similar to vacation ownership hotels • Units in condominium hotels have only one owner. interior décor. valet. and guestroom design are all important to the success of these hotels Bed and Breakfast Hotel • Sometimes called “B&Bs” • Range from converted small houses to small commercial buildings with 20– 30 guestrooms • Owner usually lives on the premises and serves as the property manager • Breakfast ranges from a simple continental breakfast to a full-course meal • Most only offer lodging and limited food service • Room prices tend to be lower than in a full-service hotel Vacation Ownership Hotel • Sometimes referred to as timeshare or vacation-interval hotels • People purchase ownership of accommodations for a specific period of time (usually one or two weeks a year) • If owners do not stay during their time period. relaxed atmosphere • Strive to provide enjoyable guest experiences to encourage repeat business and word-of-mouth referrals • Often employ social directors Lifestyle Hotel • Appeal to specific travelers who enjoy certain architecture. with limited or no meeting space • Food service varies from world-class to mid-range • Building exterior. and amenities • Most major lodging companies have entered this market segment • Reflect the interests of their guests • Usually have 100 to 250 guestrooms. • May provide some or all of the services provided to guests in commercial hotels • A restaurant/lounge may be located on the premises Resort Hotel • Often chosen as the destination or vacation spot • Usually located in an exotic location away from crowded residential areas • Usually feature recreational facilities/activities and breathtaking scenery not typical of other hotels • Usually provide extensive food and beverage.

national.000 square feet or more of exhibit hall space. regional. with several thousand guestrooms Conference Hotel • Specifically designed to handle group meetings • Provide all of the services and equipment necessary for a meeting’s success • Often located outside metropolitan areas • May provide extensive leisure activities Convention Hotel • This segment has grown significantly in recent years • Often have thousands of guestrooms • Can have 50. plus ballrooms and meeting rooms • Offer a variety of dining facilities • Primarily directed toward business travelers with a common interest • A full line of business services are generally available for guests • Host state. and international meetings • May book business up to ten years in advance Basic Issues Pertainig in Service • Intangibility of service • Quality assurance • Rating services • Economy/limited service Types of Hotel. • Feature gambling facilities • Guestrooms and food and beverage operations are often luxurious. but they are secondary to the gambling operations • Cater to leisure and vacation travelers • Attract guests by promoting gaming and headliner entertainment • Provide a broad range of entertainment and recreation opportunities • May offer charter flights for guests who plan to gamble • Gambling activities may operate 24 hours a day. Classified by Level Service • World-class service • Upscale • Mid-range service • Economy/limited service Classified by Ownership Affilation • Independent hotels • Chain hotels • Management contract • Franchise • Referral group Categories of Guest • Business • Pleasure/leisure • Group • International . 365 days a year • Some are very large.

secretarial/computer services. Internet access Pleasure/Leisure Traveller • Specialized resort travel • Family pleasure travel • Travel by the elderly • Travel by singles or couples • Price-sensitive Group Traveller • Pleasure travel • Institutional meetings/conventions • Corporate/government meetings/ conventions • Trade associations • Management meetings. in-room safes. the first and primary market for hotels • More than 35 million people take business trips each year • Business travelers average about five trips per year • Business travelers account for a significant portion of lodging demand • Hotels design specific products and services for business travelers-- meeting space. new product introductions. 24- hour room service. stockholder meetings International Travellers • Different needs and expectations • Language barriers • Foreign-born employees can be helpful in serving these guests Buying Influence on Travellers • Satisfactory experiences with a hotel • Ads by a hotel or chain • Recommendations by family members and friends • Hotel’s location • Preconceptions of a hotel based on its name or affiliation • Travel management companies • Ease of making reservations • Hotel’s quality of service. cleanliness. sales meetings. offices. training seminars.Business Traveller • Historically. professional/technical meetings. and appearance • Loyalty to a particular property or brand • Frequent traveler programs • Website design (for travelers booking online) Blogging and Social Networking • Blogs: publically accessible chronicles or personal diaries • “B-blog” is a blog dedicated to a business or business segment • Alternative blogs include discussion forums and e-mail exchanges • Social networking sites facilitate interaction within an online or virtual community • Social networking sites allow individuals or groups to create personal profiles to share with others The Green Hotel • People increasingly interested in patronizing “green” hotels .

and educating guests about environmental issues • Green initiatives are in place worldwide • LEED certification.• Government agencies. and waste management programs • Green meetings . water management. Energy Star program • Hotels engaged in energy management. biodiversity management. recycling. the Association of Corporate Travel Executives seeking “green” hotels • Green hotel initiatives include: reducing greenhouse gas emissions. capturing waste heat from power generators. organic gardening. using renewable energy sources.