Learning Objectives <ul><li>Study the lodging industry. </li></ul><ul><li>Appreciate the immensity of the restaurant-food service industry. </li></ul><ul><li>Learn the current trends in resorts and timesharing mode of operation. </li></ul><ul><li>Discover why meetings and conventions as well as meeting planners are so important to tourism. </li></ul>
Commercial Accommodations Non-Commercial Motels Time Share Facilities Upscale Mid Range Suite Hotels Private Institutional Private Homes College/ University Spas and Health Care Facilities Non-Profit Hostels Shelters YM / YWCA Bed & Breakfast Hotels (Chains/Independent) Meetings & Convention Hotels Budget Airport Hotels Mid Range Budget Home Exchange Deluxe Luxury Extended Stay Economy Resort Hotels Spa Casino Upscale Accommodations Structure
The Lodging Industry <ul><li>World hotel room inventory grows about 2.5% a year. </li></ul><ul><li>Occupancy rates average 65% overall. </li></ul><ul><li>72% of the world’s hotel rooms are located in Europe and North America. Europe has 45% of the rooms. </li></ul><ul><li>In 2003, the U.S. lodging industry generated $105.3 billion in sales, numbered 47,584 properties, 4.4 millions rooms, and recorded profits of $12.8 billion. </li></ul>
Top 25 Hotel Chains (2003) Rank Corporate Chain Rooms Hotels 1 InterContinental Hotels Group 536,318 3,520 2 Cendant Corp. 518,747 6,402 3 Marriott International 490,564 2,718 4 Accor 453,403 3,894 5 Choice Hotels International 388,618 4,810 6 Hilton Hotels Corp. 348,483 2,173 7 Best Western International 310,245 4,110 8 Starwood Hotels & Resorts Worldwide 229,247 738 9 Carlson Hospitality Worldwide 147,624 881 10 Hilton Group plc 98,689 392 11 Hyatt Hotels/Hyatt International 89,602 208 12 Sol Meliá SA 80,494 331 13 TUI AG/TUI Hotels & Resorts 76,000 290 14 Société du Louvre 66,356 896 15 Interstate Hotels & Resorts 65,250 295 16 Wyndham International 50,980 190 17 Extended Stay America 50,240 472 18 FelCor Lodging Trust 45,000 161 19 La Quinta Corp. 43,457 363 20 Westmount Hospitality Group 40,000 332 21 U.S. Franchise Systems 36,633 470 22 Club Méditerranée 36,106 103 23 Le Méridien Hotels & Resorts 35,589 143 24 NH Hotelés SA 34,458 239 25 Hospitality Properties Trust 34,284 271 * Rankings are based on total rooms Source : Hotels , July 2004. Hotels magazine, a Cahners Publication, 2000 Clearwater Drive, Oak Brook, IL, U.S.A. 60523.
Resorts and Timesharing <ul><li>41% of the world’s timeshare units are located in the U.S. </li></ul><ul><li>52% of the world’s timeshare owners are U.S. </li></ul><ul><li>Timeshare resorts are located in 95 countries. </li></ul><ul><li>Timeshare owners reside in 174 nations. </li></ul><ul><li>Major companies such as Disney, Hilton, Marriott, and Hyatt have become involved in timeshare. </li></ul>
Food Services Structure Food Services Independent Chain In-Hotel Fast Food Restaurants Traditional Restaurants Ethnic Local Cafeterias Specialty Independent Broad Menu Specialty Ethnic Local Minimal Service Full Service
Food Service Industry (2005) <ul><li>U.S. sales total estimated $476 billion – 4.9% over 2004. </li></ul><ul><li>Employs more than 12.2 million people. </li></ul><ul><ul><li>Restaurant industry provides work for more than 9% of those employed in the United States. </li></ul></ul><ul><ul><li>Industry employees more minority managers than any other retail industry. </li></ul></ul><ul><li>900,000 locations. </li></ul><ul><li>Travelers contribute about $130 billion to sales each year. </li></ul>
Meetings and Conventions <ul><li>Industry worth $102.3 billion. </li></ul><ul><li>Average convention attendee spends $218 per day, stays 4.1 days and spends $895 per event. </li></ul><ul><li>Convention centers are expanding. </li></ul>