Accommodation

 Discuss the development and current issues

of Tourist Accommodation and Lodging
services
 Understand the classification of Hotels
 Understand the types of Resorts
 Discuss the Hotel and lodging operations
5 Kandolhu Maldives 4 JA Manafaru
North Ari Atoll, Maldives Manafaru Island, Maldives

https://www.tripadvisor.com.au/TravelersChoice-Hotels-cTop-g2
3 Hanoi La Siesta Hotel & Spa 2 Shinta Mani Resort
Hanoi, Vietnam Siem Reap, Cambodia

https://www.tripadvisor.com.au/TravelersChoice-Hotels-cTop-g2
1 Mandapa, A Ritz-Carlton Reserve “Amazing. Everything we could have ever
hoped for was taken care of even before
Ubud, Indonesia we thought of it.”

https://www.tripadvisor.com.au/TravelersChoice-Hotels-cTop-g2
5 Shinta Mani Club 4 The Peninsula Shanghai
Siem Reap, Cambodia Shanghai, China

https://www.businessinsider.com.au/best-hotels-in-asia-2015-10?
r=US&IR=T#/#5-shinta-mani-club-siem-reap-cambodia-tie-30
3 Oberoi Rajvilas 2 The Mulia
Jaipur, India Bali, Indonesia

https://www.businessinsider.com.au/best-hotels-in-asia-2015-10?
r=US&IR=T#/#3-oberoi-rajvilas-jaipur-india-32
1 Gili Lankanfushi Maldives “We spent seven nights on this beautiful island
and cannot fault a single part of it. Every inch is
North Male Atoll, Maldives immaculate, and the service is flawless. ”

https://www.businessinsider.com.au/best-hotels-in-asia-2015-10?
r=US&IR=T#/#1-gili-lankanfushi-maldives-north-mal-atoll-maldives-34
 Historians argue modern-day concept of travel
and tourism originated with medieval Christian
pilgrimages to Rome and the Holy land,
Hinduism and Buddhism
Christian – Jerusalem and Rome
Hinduism – South Asia 4000 years BC
Buddhism – Nepal, India 2000 years ago
 There are 47,040 lodging properties and close
to 4.4 million guest rooms in U.S. (Powers &
Barrows, 2006)
Timothy & Teye, 2009
 Modern Lodging providers should keep pace
and to meet needs of growing marketplace
such as new destinations, change in demand
characteristics, international relations improved
and liberalization of travel and trade

 Need to provide more economically and socially

sustainable and scale-appropriate forms of
accommodation to minimize impact on local
residents
Timothy & Teye, 2009
 Growth of international tourist arrivals
Year Number of tourists
(millions)
1980 288

1990 457

2000 698

2007 903

2012 1,035

Source: UNWTO 2013

 International arrivals In Asia and the Pacific, 2007
Year 1990 2000 2007 2012
(millions) (millions) (millions) (millions)
Northeast Asia 26.4 58.3 104.2 122.8

Southeast Asia 21.1 35.6 59.6 84.0

Oceania 5.2 9.2 10.7 12.1

South Asia 3.2 6.1 9.8 14.0

Source: UNWTO 2013

 Push factors
a) need to belong (VFR travelers)
b) seeking self fulfillment (casino gamblers)
c) spiritual growth (hajj in Mecca, Saudi Arabia)
d) getting away from mundane environments
(getaway in resort)

Timothy & Teye, 2009

 Demand shifters
a) seasonality (special events, Olympics)
b) changing demographics (retirees, smaller family
size)
c) travel is a luxury good during economic
hardship
d) new destinations (Myanmar)

Timothy & Teye, 2009

1) Human resources
– recruitment and retention
- training and service quality
2) Franchises, mergers and acquisition
- Franchises are popular in USA, Canada and UK
- Hilton, Hyatt, Marriott, Accor are selling management contracts
3) E-commerce and information technology
- Internet as a marketing tool

Timothy & Teye, 2009

 Hotels and resorts are most common
 Global hotel and resort room inventory

Continent Percentage of
inventory
Europe 45
North America 27
 17million visitors stayed in hotels, motels and resorts in USA, average
length Asia
of stayPacific
of 7.5 nights 14
(Source: American Hotel & Lodging Association, 2007)
 Hotel industry is a significant contributor to the Australian economy
 6,807 hotels and industry employment of 90,000

 Most hotels engaged local suppliers, contributing to employment and

income in their communities

 Average occupancy rate of 72.7% and average room rate of A$147.65

 Annual expenditure on security is A$515.6m

 Average spending on formal and informal training is A$71.8m

 Total spending in hotels estimated to be A$12-13 billion per annum

 (Source: Australian Hotels, April 2009)

 (Source: American Hotel & Lodging Association, 2007)
 Hotels are businesses that supply paid lodging on a
short-term and temporary basis

Novotel Fairmont Hotels

Barrows, Powers & Reynolds (2012)

 Hotels
according to Florida, most visited state in
the USA defined

“hotels are public lodging establishments that

contain sleeping room accommodations for 25
or more guests, provide the services commonly
provided by a hotel, and is recognized as a
hotel in the community and the hospitality
industry”

Barrows, Powers & Reynolds (2012)

 Famous historic hotels
Hotel Location Year
Oriental Hotel Bangkok, Thailand 1876
Raffles Hotel Singapore 1887
Goldener Hirsch Salzburg, Austria 1671
Grand Hotel Europe St Petersburg, Russia 1875
Hotel D’Angeleterre Copenhagen, Denmark 1755
Grand Hotel du Louvre Paris, France 1855
Mena House Cairo, Egypt 1886
Grand Hotel Royal Budapest Budapest, Hungary 1896
Banff Springs Banff, Canada 1888
 Hotels star rating system varies from countries
 Some countries have standardized star ratings

and specific criteria

 Classification of hotel properties:

a) Price
b) Function
c) Location
d) Market segment
e) Others

Barrows, Powers & Reynolds (2012)

 Classification of hotel by Price:

a) Limited-service hotels consist of guest rooms with

limited function room and F&B facilities

b) Full-service hotels offer a wide range of facilities and

amenities

c) Luxury hotels usually have 150-400 guest rooms

with concierge service, fine-dining, recreational and
banquet facilities
Barrows, Powers & Reynolds (2012)
 Classification of hotel by Function:

a) Convention hotels – 500 guest rooms or more

with extensive meeting and function space

b) Commercial hotels – 100 to 500 guest rooms,

located downtown and command higher rates

Barrows, Powers & Reynolds (2012)

 Classificationof hotel by Location:
a) Downtown hotels – central location
b) Suburban hotels – 200-350 guest rooms with
low to mid-rise structures
c) Highway or Interstate hotels – 100-250 guest
rooms and low-rise structures
d) Airport hotels – 250 to 500 guest rooms and
designed to accommodate air travellers

Barrows, Powers & Reynolds (2012)

 Classification of hotel by Market Segment:
a) Executive Conference Centers – suburban and less
than 300 guest rooms
b) Resorts – 200-500 guest rooms e.g eco-tourism at
Great Barrier Reef, highlands of Tasmania
c) Casino hotels – gaming operations are the major
revenue centers, e.g. Las Vegas
d) Health spas – resort-type setting to provide spa
amenities to improve quality of life
e) Vacation ownership – ‘Time shares’ e.g. Marriott,
Four Seasons, Accor
Barrows, Powers & Reynolds (2012)
 Resorts can be a:
a) tourist destination e.g. Florida, Phuket
b) resort destination or self-contained

 Self-contained resorts have a range of

recreational services including swimming pools,
spas, gyms, theaters, game rooms, golf courses,
ski slopes, gift shops, conference centers. Club
Med popularized all-inclusive resort concept in
the 1960s and 1970s
Barrows, Powers & Reynolds (2012)
 Types of resorts:
a) Beach and island resorts
b) Ski resorts (Rocky mountain)
c) Theme park resorts (Disneyland)
d) Casino resorts (Foxwoods Resort Casino,
Connecticut, USA)
e) Golf resorts (Port Douglas, Australia)
f) Health spa resorts (Tao Garden Health Spa &
Resort)

Barrows, Powers & Reynolds (2012)

 Classification of hotel by Others:
a) all-suite hotels e.g. MiCasa All Suite, KL
b) extended-stay hotels in Charlotte, North
Carolina)
c) historic conversions e.g. Tai O Heritage Hotel,
Hong Kong
d) Bed-and-Breakfast Inns
e) Boutique hotels – e.g. Regent Wall Street

Barrows, Powers & Reynolds (2012)

 Bed and Breakfast (B&B) is most common

 B&Bis defined as ‘independent, owner-

managed establishments not recognized as
hotels and offering overnight accommodation
and breakfast on a “per night” basis to paying
guests’ (Bed and Breakfast Association, 2008)

 B&Bis regarded as romantic getaway options for

honeymooners and anniversary celebrations in
Canada and USA but not Europe or UK
Timothy & Teye (2009)
 Management issues in (B&B)
a) e-commerce and internet reservation systems
b) safety and security
c) labor intensive operations
d) lack of management experience in the
hospitality sector
e) lack of financial resources

Timothy & Teye (2009)

Barrows, Powers & Reynolds (2012)
 Recreational vehicles and caravans

Timothy & Teye (2009)

 Trains
(Japan and India are world’s most train-
dependent countries)

Timothy & Teye (2009)

 Cruises
- growing sector in leisure tourism
- Singapore’s International Cruise Terminal to
double berth capacity

Timothy & Teye (2009)

 Backpacker tourist as ‘a person who spends at
least one night in a backpacker or hostel
accommodation’ (Tourism Australia, 2008)
 They are independent, budget conscious

travelers using least expensive transportation

and accommodation
 They represent 10% of international tourists in

Australia

Timothy & Teye (2009)

 Backpacker and Hostel accommodation in Australia
2005-2007 (Source: Tourism Australia, 2008)
2005 2006 2007 Change in %

Number of backpacker 456 429 424 -1.1

properties

People employed 3337 3271 3449 5.4

Bed spaces (‘000) 48 47 47 0

Guest nights (millions) 8.31 8.54 8.73 2.2

Bed occupancy rate (%) 47.8 49.7 51.2 3.0

Earnings (AUD$) 192.3 203.4 218.4 7.4

 Hostels are budget
and short-term
accommodation and
they provide
dormitory-style
lodging for budget
travelers

Timothy & Teye (2009)

 A large property will employ a general manager,
under whom a hotel manager or resident manager
assumes responsibility for daily operations
 Departments:

a) Food and beverage – running the bar, cafeteria

b) Front office – running the rooms department
c) Sales – promote rooms
d) Support services – HR, Finance, Maintenance

Timothy & Teye (2009)

 Front Office (FO)

Integral role as they interact with guests

3 shift (7am-3pm, 3pm-11pm, 11pm-7am)
Use logbook to ensure everyone is briefed
Handles check-in guests e.g. 3pm and check-out
guests e.g. noon
Inform housekeeping to clean rooms

Barrows, Powers & Reynolds (2012)

 Front Office (FO)
Automation
- Install property management system (PMS)
- http://www.3cx.com/hotel-PBX/index.html
 Front Office (FO)
 Front Office (FO)

I
 Front Office (FO)
 Reservations and Yield Management
Yield management looked at:
a) Occupancy rate

b) Average daily rate (ADR)

And vary room rates according to the demand for rooms

e.g. sell at discounted rate during low season
Take multiple-night reservation and avoid less risk of
having a vacant room
Used by airline industry to deal with fluctuating demands

Barrows, Powers & Reynolds (2012)

 Housekeeping

- Production department of a hotel as front desk and bell

staff are service departments
- Each housekeeper keeps 16-18 rooms per day, it is a

physical demanding job

- Purchase guest room supplies e.g. linens, toiletries

- Clean the halls and public areas e.g. lobby, ballroom

Barrows, Powers & Reynolds (2012)

 Winner hotel software
 Telephone and call accounting systems
- The communication manager or Private Branch
Exchange (PBX) manager is in-charge
- Automated voice-mail system minimizes staffing
requirements to take and deliver guest messages
- Guests used cellphones have negative impact on hotel
telephone revenue
- On average, telephone revenue made up 2% of hotel
sales supplemented by in-room high-speed internet
access (HSIA)
- Technology has provided on-demand TV, video and
games and increase guest room revenue
Barrows, Powers & Reynolds (2012)
 Uniformed Services Staff

a) Bell staff – acquaint the guest with services and features

of the hotel
b) Valet – parking and retrieving guests’ cars

c) Security – used CCTV to manage safety of guests and

their property, fire prevention and emergencies

Barrows, Powers & Reynolds (2012)

 Food and Beverage (F&B) Operations
- In full-service hotels, the food service
operation can be a key competitive weapon with
different food outlets
- 24-hour operating room service department
is expected in luxurious hotels
- F & B department contributes 10%-20% to profits
- Banquet department provides food service to functions
- Executive chef heads the food production as he is
responsible in hire, train and to discipline staff

Barrows, Powers & Reynolds (2012)

 Staff and Support Departments
- Sales and Marketing – personal selling in promoting
hotel services and features to prospects
- Accounting – good controls and asset management of
account receivables, account payables and payroll
- Human Resources – better hiring and training can
reduced staff turnover and improve employees
satisfaction
- Engineering – maintain through regular inspection of
the equipment of hotel

Barrows, Powers & Reynolds (2012)

 Barrows, C. W., Powers. T. and Reynolds, D. (2012)
Introduction to the Hospitality Industry. Eighth edition.
John Wiley & Sons
 Timothy, D.J. and Teye, V.B. (2009) Tourism and

Lodging Sector. Butterworth-Heinemann

 Zakhary, A., Atiya, A.F., El-Shishiny, H. and Gayar, N.E.

(2009) Forecasting hotel arrivals and occupancy using

Monte Carlo simulation
