3

The Accommodation Industry

1. The history of the accommodation industry
1.1 A brief history
1.2 Latest trends
2. The structure of the accommodation sector
3. Types of accommodation facilities
4. The hotel industry
4.1 Hotel types
4.2 Hotel rating systems
4.3 Hotel operation
4.3.1 Hotel chains and independent hotels
4.3.2 Hotel organization
4.4 Hotel services and facilities
4.5 Room types and rates

Questions and Topics for Discussion

1. Describe the early forms of accommodation.

2. Identify different types of commercial and non-commercial accommodation and explain how they are
different.
3. Describe different types of accommodation facilities. What factors influence travellers’ choice of
accommodation facilities?
4. What types of hotels are affected by periodicity and for which hotels is seasonality a major problem?
5. Into what two broad categories does hotel employment fall? What is included in each of these
categories?
6. List the typical hotel facilities that different categories of hotels offer.
7. What different hotel rates does a hotel usually offer?
8. Describe the most common type of hotel rooms.
1. THE HISTORY OF THE ACCOMMODATION INDUSTRY

1.1 A brief history

No one knows exactly when the first hotels or inns opened. The first inns were private homes that offered
accommodation to travellers. When the Romans were establishing their empire, they built a whole network
of roads and set up stations where travellers could change horses and rest. Later, in Europe and America
inns were set up along the roads at a distance a horse could travel a day. Inns also became important social
gathering places both in Europe and America. The first modern American hotel was the 170-room Tremont
House in Boston, which opened in 1829. It looked like a palace. In America hotels were the first to try new
technology (e.g. heating by steam, elevators or electric lamps).

Trains significantly increased the amount of travelling both for leisure and business. Therefore, in the 19th
and 20th centuries many hotels and restaurants were built next to railway stations.
Later, when the number of cars grew, restaurant and motel chains were built along highways.
After Charles Lindberg flew across the Atlantic Ocean (1927) investment in aviation began which had a huge
impact on the hospitality industry: mass transportation over long distances became possible.

1.2 Latest trends

Latest trends include large corporate-operated hotels, luxury business hotels, guest loyalty programmes
and new marketing tools.
 Large corporate-operated hotel usually offer all types of services.
 Luxury hotels often use executive floors. Business guests are provided with services and facilities
such as fax machines, laptop computers, a photo copier and a printer, Wi-Fi, and fitness facilities.
Some rooms are designed even to arrange job interviews. These rooms have a waiting area.
 Guest loyalty programmes are operated in many hotels. Guests, for example, can gain bonus points
if they stay at a hotel and they can use these points later either at the same hotel or at certain
restaurants or other service providers.
 There is renewed focus on property websites. Hotels are developing their own websites and trying
to convince travellers to opt for direct bookings.
 The growing importance of the social media must be considered. Hotels make use of emerging
social/mobile applications as great value in hotel marketing.
 Hotel marketers should focus on ways to capitalize mobile applications, as social media and mobile
devices have already become inseparable. Smart-phones have replaced desktops and laptops, and
social media updates from mobile phones are the preferred trend.
 A strong online presence is vital. Engaging blogs, interactive social media platforms, newsletters, e-
books, photo and, video sharing media are efficient and inexpensive tools that will enable hotels to
reach people quickly.
 In order to reach potential travellers, embarking videos and photo sharing sites such as Instagram
and Pinterest, is vital, as more and more people will view and share videos and photos that will
become a great advertisement for the business.
 Hotels redesign their selling tactics. A growing number of users book across web and mobile
platforms. TripAdvisor has become the world's most popular travel website with 34 million users
each month. Google Places business listings also show up on iPhone searches as well as on Google
Maps, so hotels have to:
o Monitor booking sites (TripAdvisor, Google Places, etc.) reviews and alert management of
any low reviews at least twice a week.
o Comment on glowing reviews to thank them preferably within 24 hours.
o Comment on low reviews preferably within 24 hours and draft how the property intends to
handle future situations.
2. THE STRUCTURE OF THE ACCOMMODATION SECTOR

The accommodation sector includes different forms of sleeping facilities which can be categorised as either
serviced or self-catering.

(Holloway, 1998, p.143.)

3. SOME TYPES OF ACCOMMODATION FACILITIES

Motels
Motels are set alongside motorways. They suit the business person or the tourist who needs an overnight
stop. It is usually not necessary to book in advance. Exceptions can be motels in a popular area in the high
season. Motorists will find a big car park and they can have a good standard of accommodation at a
reasonable price. The building is modern and only consists of bedrooms, each room exactly the same.
The price includes en-suite facilities, coffee and tea-making, television and telephone. At the entrance there
is a security door and a reception. Staffing is minimal as no food is available on the premises.

Timeshare villas/apartments/rooms
A timeshare owner buys the right to occupy a self-catering apartment in a hotel or leisure club for a certain
number of weeks per year. Timeshare owners have to pay one-off payment and a modest annual
maintenance fee. This does not mean that one is tied to one resort because timeshare buyers can swap
their holiday through an international exchange organization. Hotels often invest into timeshare because it
may have several advantages for them:
 extend the holiday season
 opportunities to increase occupancy
 increased use of restaurant
 provides funds for refurbishment and development

Guesthouse, Pension, Bed and Breakfast

A bed and breakfast (B&B) is a lodging facility in a large family residence where guests can be
accommodated in private bedrooms and where breakfast is served in the morning. The rooms may or may
not have a private bath. The staff often consists of the house owners and members of their family who live
there. It is possible for guests to stay more than one night, but guests are usually expected to leave the
room during the day. Most B&Bs are small: they can accommodate about 10-15 guests.
The B&B arrangement is actually very old; before the 20th century, it was quite normal for country
travellers to spend the night at a private house rather than an inn.
Hostel
An inexpensive alternative for students and budget travellers with dorms shared by many travellers (types:
male, female and mixed). Common toilets, kitchen and bathing facilities are shared by all rooms on the
floor.

Campsite
Here travellers can pitch tents or park their caravan or motorhome.

4. THE HOTEL INDUSTRY

4.1 Hotel types

Hotels are the most significant form of overnight accommodation. The hotel product consists of location,
facilities, image and services. One of the main characteristics of the hotel product is that they often suffer
from seasonality (in holiday resorts) or periodicity (business hotels).
The different types of hotels can be defined according to the following aspects:
 The location of a hotel. The location can be at a destination or stopover point. It can be in a central
tourist area, (e.g. in a city centre), in a new commercial development site (e.g. in the area of the
Budapest international fairs) or in a suburban residential area (outside the city centre).
 The owners of the hotel (a family or a hotel chain).
 Clientele, that is, the people who stay at the hotel e.g. business people, groups, or holidaymakers.
 Facilities, services and the price.

Categories by location:
 City centre hotels are usually very popular. Many of them are operated by a chain and serve
business guests.
 Resort hotels are built in destinations that offer pleasant climate, scenery, recreational facilities, or
historic interest. A resort complex consists of a hotel and recreational facilities that are isolated
from the nearby community (e.g. the holiday villages). Many resorts such as spas are visited for
health reasons.
 Suburban hotels are smaller than downtown hotels. Their guests are usually business travellers.
 Highway hotels/motels provide easy access and parking facilities. Airport hotels enjoy some of the
highest occupancy rates.

Categories by price:
Hotels can also be categorized by price. The most important classifications are: economy/limited service,
mid-price/extended stay and full-service/luxury hotels.

Categories by guests:
You can also classify hotels by guests. The major classifications are business or corporate (individuals,
groups, meetings, conventions), leisure travellers, long-term stay, government and military travellers.

Within the main categories there are several types of hotels: e.g. country house hotel (=inn), commercial or
business hotel, convention hotel, resort hotel, airport hotel, luxury hotel and motel, all-suite hotels, casino
hotel, conference centre, time-share condominium, cruise ship, boutique hotel or other unique types.

The boutique hotel is an interesting type of hotel accommodation. Boutique hotels are all unique, in
architectural style, interior design, decorative theme and personalized service. They provide an intimate
atmosphere which is the most important characteristic of a boutique hotel. The intimate atmosphere is the
result of décor, personalized service and the attitude of the staff. Boutique hotels are rather small; the
maximum number of rooms for a boutique hotel is about 100 rooms.

Unique hotels:
Capsule Hotels are very popular in Japan, They are extremely small. They are commonly found around near
train stations for people who miss the last train home.
Ice Hotels are built from enormous blocks of ice, very popular in Canada, Sweden and Finland. The hotel
temperature is a constant -6°C inside and the outside temperatures can drop to more than -50°C. The
rooms are decorated with lovely carvings in the ice.

Cave Hotels are accommodation in a cave. They are commonly found in Greece, Turkey, Spain and Australia

Undersea Lodges are accommodation in the sea where you can view marine life, found in Florida.

Tree Lodges are accommodation built on a tree, commonly found in Africa near national parks.

4.2 Hotel rating systems

1-5 stars rating system

During the last decades of the 20th century common standards improved considerably. For the sake of
greater comparability, various rating systems have been introduced. The most commonly used rating
system in Europe is the one to five stars classification. A star is a symbol used for classification purposes.
However, there is no one international standard to define the quality of a one star or a 5-star
establishment. Huge differences exist in the quality of the accommodation and the food within one
category, sometimes even in the same country. The Hungarian rating system is regulated by a government
decree.

Traditionally rating depends on the facilities that a hotel can provide, which is often disadvantageous to
smaller hotels whose quality of accommodation may be excellent, but the lack of an item such as an
elevator would prevent it from reaching a higher categorization.
The five categories are divided up as follows:
 * (one star) – low budget hotel
 ** (two stars) – budget hotel
 *** (three stars) – medium class hotel
 **** (four stars) – first class hotel
 ***** (five stars) – luxury hotel

In the US Diamonds are awarded. The best known grading systems are operated by the AA (Automobile
Association) in Britain and by the AAA in the US.
Ratings or some professional organization, and are used to determine the price range of a hotel.
AA Quality Ratings and Related Symbols: Stars
The best known grading systems are operated by the AA (Automobile Association) in Britain and by the AAA
in the US.
In the AA system also stars are used as symbols o indicate the standard of quality you can expect.

Star(s) Services
* At this level, staff are polite and provide informal yet competent service. The majority of rooms
are en suite and there is an eating area with a reasonable choice of food and wines available.
** Staff are smartly dressed and provide competent, often informal, service. All rooms are en suite
and have a TV. There is at least one restaurant or dining room with a substantial choice of food
and wine available.
*** Staff are skilled in responding to guests’ needs, and there will be a receptionist on duty. All rooms
are en suite and have remote-control TV and direct-dial telephone. There is a restaurant open to
residents and their guests and a bar or lounge serving drinks.
**** A formal, professional service is provided and staff respond to guests’ needs. Reception is staffed
24 hours a day, with porters available on request. Bedrooms offer superior quality and comfort;
en suite bathrooms have high-quality toiletries. Services such as 24-hour room service, laundry
and dry-cleaning will be available, and the restaurant offers a wide range of dishes.
***** Perfect guest services and professional, attentive staff are a must at this level. Accommodation is
spacious and luxurious, with impressive design and furnishings. En suite rooms offer exceptional
quality and provide extras such as bath sheets and robes. The restaurant has an excellent chef,
and offers superior wines.

The AAA Diamond Rating System in the US

Star(s) Services
◊ Good but modest accommodation. Establishments are functional, emphasizing clean and
comfortable rooms.
◊◊ It offers everything that the one-diamond level does, but with better room décor and
furnishings.
◊◊◊ It offers a higher level of sophistication. Additional services and facilities may be offered. There
is a noticable upgrade in physical attributes, services and comfort
◊◊◊◊ It offers a high level of service and hospitality. These hotels offer a wide variety of upmarket
facilities in the guest rooms, on the grounds and in the public areas.

◊◊◊◊◊ It is a world-class establishment offering exceptionally high level service, luxurious facilities,
and many extra amenities. Guest services are flawless. There is professional staff.

4.3 Hotel operation

4.3.1 Hotel chains and independent hotels

There are different ways in which hotels can be operated. Hotels can operate independently or as part of a
chain.

An independent hotel is not connected with any hotel company and is owned by an individual or a group of
investors.

A chain is a group of affiliated hotels. There is a management company which contracts with hotel directors
to operate their hotels for them.
A franchise is a certain license offered by a hotel chain to an individual hotel to use the hotel trademark
and operating systems in return for a percentage of the hotel’s revenues. A franchisor is the party giving
the franchise license. A franchisee is the party gets the license and operate his/her establishment
accordingly

The hotel chains have several competitive advantages over independent hotels.
 There s a degree of uniformity. Guests know what to expect.
 They can increase efficiency.
 They can share the costs of advertising.
 The accounting and auditing systems of the chains can be centralised.
 Chains can easily get expensive market research data.

The first hotel chains started in the 19 th century. It was Mr. Statler, who first recognized guests’ demand for
uniform standard. He started his career in 1878 as a bellhop in West Virginia. In 1908 he opened his first
hotel in New York. It had telephones in every room, ice water and a number of amenities. He started giving
free morning newspapers Soon four more hotels were opened.
Another hotel-chain pioneer was Conrad Hilton. He bought his first hotel in 1919. He bought hotel Waldorf
Astoria, and the Statler chain in 1954.
The Sheraton chain was started in 1941 by Ernest Henderson. One of the hotels he bought had an
expensive electric sign on the roof bearing the name ‘SHERATON’. It would have been expensive to remove
the sign so he kept it, and named all his future hotels Sheraton.
The concept of standardized roadside accommodation was the brainchild of Kemmons Wilson. In 1952 he
built his first Holiday Inn. Today Holiday Inn is one of the largest chains in the world.
4.3.2 Hotel organization
In order to serve guests and make reasonable profit, hotels are organised into functional divisions or
departments. For instance, all hotels have a rooms division to manage guestrooms: handle reservations,
check-in/check-out activities, housekeeping, and telephone service. If the hotel operates a restaurant it will
have a food and beverage department. The following chart is a simplified general organizational hierarchy
of a hotel. (See illustration)
For instance, all hotels have a rooms division to manage guestrooms: handle reservations, check-in/check-
out activities, housekeeping, uniformed service and telephone service. If the hotel operates a restaurant it
will have a food and beverage department. The following chart is a simplified general organizational
hierarchy of a hotel.

HOTEL MANAGEMENT

General Manager: The manager has five basic tasks to perform. These include setting goals, (short and long
term), organising the operation of the hotel and motivating and communicating. Managers’ responsibilities
include evaluating people’s performance.

Catering manager: They promote and sell banquet facilities. They must have a good knowledge of food
costs, preparation techniques, pricing, social customs and etiquette.

Head/executive housekeeper: A small hotel may employ only a few chambermaids, but a large hotel has a
large department with several assistants and many chambermaids and housemen. Their work is supervised
by a housekeeper.

Chief engineer (operation, maintenance): A modern hotel uses complicated equipment, for example
heating and air conditioning systems, elevators, electricity, and plumbing. Technicians who work in these
fields are supervised by a chief engineer.
Food and beverage manager: They direct food and beverage production and service. They are responsible
for the training of kitchen and dining room staff, quality control and pricing. They will help to plan menus
and select drinks. They will have to work long hours and shifts.

Controller: They are responsible for the accounting department and they prepare budgets and statistics.

Human resources manager: They are responsible for recruiting and training.

Marketing and sales manager: They write the marketing plans. They are expected to increase revenues.

Resident manager: They are in charge of the rooms division: front office, reservations, housekeeping and
security.

Systems manager: They are computer experts. They write programs and give instructions.

FURTHER HOTEL JOBS AND JOB DESCRIPTIONS

Job Responsibilities
Front office manager responsible for the reception area.
Reception clerk/Receptionist takes care of registration
Night auditor works at night at the reception and handles both front desk duties and
some of the duties of the accounting department
Room clerk/Key clerk hands out the keys and gives information to the guests about various
hotel services
Concierge arranges tickets for sightseeing, theatre, cinema and help with table
reservations and other hotel services
Front Office Cashier responsible for accounts, and also exchanges foreign currency
Night Clerk/Night Porter takes care of the reception area during the night shift
Bellboy shows customers to their rooms and carries luggage
Porter carries customer’s luggage
Doorman receives guests, opens the door, orders taxi-cabs, etc.
Telephone switchboard operator connects the outgoing and incoming calls
Elevator/Lift boy responsible for the lifts.
Housekeeper responsible for linen, decoration and general cleanliness of the hotel
Floor attendant responsible for the cleanliness of a special floor
Chambermaid/Room maid cleans the guest rooms, replaces items used from the minibar
Sauna attendant responsible for the sauna section
Maintenance staff take care of the technical equipment in a hotel

4.4 Hotel services and facilities

It is impossible to give a complete list of all the services and facilities (on-site and off-site) that a hotel might
offer. The following chart shows some of the most commonly used pictograms of hotel facilities and
services.
 Commonly used pictograms of on-site and off-site hotel facilities and services

radio in bedroom horse-riding

conferences

banquets telephone in bedrooms air-conditioning

building of historic
TV in bedrooms morning coffee/snacks
interest

advance booking
hotel in rural setting swimming-pool
recommended

central heating sauna foreign languages spoken

special Christmas
lift solarium
arrangements

parking dogs allowed recreation/games room

children welcomed four-poster bed distance to beach

family rooms 9-hole golf-course bar

laundry/valet service 18-hole golf-course mini-bar in bedrooms

night porter tennis court distance to airport

facilities for disabled fishing restaurant

4.5 Room types and rates

The most common types of hotel rooms include single, double and twin bedrooms. Double rooms have one
large bed whereas twin bedrooms offer two separate beds. Larger parties can be accommodated in
connecting/adjoining rooms, in a family room (four or more beds), a junior suite (bedroom and sitting-room
with a partition), a penthouse (suite at the top of the building), or a suite (bedroom and sitting-room).

Hotels will always try to increase their occupancy rate and maximize their revenue by offering a wide range
of different tariffs to different market segments. The following list gives examples of possible rates:
 Rack rate (Standard): The regular, public rate for a hotel room.
 Corporate: Usually offered for those travelling on business.
 Weekend: Discounted rate offered during a weekend period.
 Employee: Discounted rate offered to hotel (chain) employees.
 Senior Citizen: Discounted rate offered to senior citizens.
 Special/Promotional: Discounted rate offered during a low period.
  Package: Rate including amenities, meals, etc. in addition to accommodation.
 Family Rate: Rate offered for families travelling together.
 Group and Tour: Special rates offered for a travel agency or tour group.
 Negotiated: Rate negotiated by a hotel company with a special client.

Room rates might include a room-only service (RO) or a room rate and additional meals. The room-only
rate is also called European Plan. The Continental Plan includes the room rate and continental breakfast.
Half-board is also called Modified American Plan and full-board or full pension is sometimes referred to as
American Plan.