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HFRONTSERV1 Chapter 01
This document provides an introduction to hotel management, including a historical overview of the industry and key founders. It discusses the hotel classification system and trends that foster growth and employment opportunities in the industry. Finally, it outlines career development paths within hotel management.
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HFRONTSERV1 Chapter 01
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- 2. Chapter 1 –Introduction to Hotel Management • Historical overview of the hotel industry • Hotel classification system • Trends that foster growth and employment in the hotel industry • Career Development
- 3. Hotels • What comesto mind when you hear the word “hotel”? • What do you picture?
- 4. Founders of theHotel Industry • E. M. Statler • 1863-1928 • First hotel was for Pan American Expo in 1901 – “a simple structure of 5000 rooms to be torn down after the fair was over” • Statler’s chain was sold to Hilton in 1954
- 5. Founders cont’d. • ConradHilton • 1887-1979 (after WWI ) in Cisco, TX • Purchased Mobley Hotel, 1919 • Purchased Chicago Hilton, Palmer House, Plaza, and Waldorf=Astoria hotels (after WWII) • First major chain in 1954 when he purchased Statler Hotels: • Marketing, reservations, quality of service • Food and beverage, housekeeping, accounting • Brands: • Hilton Garden Inns • Doubletree • Embassy Suites • Hampton Inns • Harrison Conference Centers • Homewood Suites by Hilton • Red Lion Hotels and Inns • Conrad International
- 6. Founders cont’d. • WilliamWaldorf Astor and John Jacob Astor IV • Cousins • 1893 built hotel for their wealthy friends • Moved from 34th to Park and Lexington between 49th and 50th Streets • Waldorf Towers is a hotel within a hotel • Note the “=” in name
- 7. Founders cont’d. • KemmonsWilson (died in Jan. 2003) • Family trip in 1952 • Central reservation system HOLIDEX • Ray Shultz • Protégé of Kemmons Wilson • Started Hampton Inn - 1984 • Limited service concept; cost consciousness
- 8. Founders cont’d. J.W. Marriott •1900-1985 • 1957 Twin Bridges Marriott Motor Hotel • Brands include: • Courtyard • Residence Inn • Renaissance Hotels & Resorts • Fairfield Inn • Spring Hill Suites • Towne Place Suites • Marriott Hotels, Resorts, and Suites • JW Marriott Hotels & Resorts
- 9. Founders cont’d. Ernest Hendersonand Robert Moore • First Sheraton in 1937 was Stonehaven, Springfield, MA • First hotel chain to be listed on NY Stock exchange • 1968 acquired by ITT Corp. • Owned by Starwood Hotels • Brands • Sheraton • Westin • Four Points • St. Regis • The Luxury Collection • W Hotels
- 10. Historical Developments 1. Atriumconcept – used by Hyatt Regency in Atlanta “from Roof to Floor” in 1960
- 11. Historical Developments 2. Limited-servicehotels - 1980 targeted business market on a limited budget – ex. Hampton Inn - Features: spacious comfortable room, limited food & beverage, first to offer 100% satisfaction guarantee
- 12. Historical Developments Technological Advances •Recent additions to that list include: • 1) applications of wireless technology for communication between departments; • 2) guests can access email and other documents or printing those documents as needed from “hot spots” – designated wireless transmission and reception areas in the hotel. What other examples can you share?
- 13. Historical Developments cont’d. 4.Marketing emphasis – theme 1970’s- guest reservation/ single phone # 5. Total Quality Management (TQM)– a technique that helps managers look at process used to create products and services with a critical eye on improving those processes • 1990’s (TQM); 2000’s – “quality assurance” and “service quality”
- 14. Historical Developments cont’d. 6.Major Reorganization 1987-88 • Passive losses on real estate no longer deductible • Japanese wanted buy hotels -> value of hotels increased • Recession increased and completed 7. Hotel investment • New incremental income streams – who manages hotels vs. who owns the hotel? • REIT (Real estate investment trusts)
- 15. Historical Developments cont’d. 8.September 11, 2001 Attack on the U.S. • Decrease in the number of people willing to fly yields a decrease in number of rooms rented; this resulted in a banding together of tourism partners • Review marketing plans of post-9/11 corporate traveler. • Need to review security at front line of hotel who is coming into the hotel • Community responsibility for security activities • Review liability implications to repair facilities and guest security for effects of terrorism
- 16. Overview of LodgingIndustry cont’d. Types of lodging facilities – • A. Hotels • B. Motels • C. All-Suites • D. Limited – Service Hotels • E. Extended Stay Hotels – continued high occupancy
- 17. Overview of LodgingIndustry cont’d. • Market Orientation – types of properties and who they serve • Residential • Public dining • Social activities • Recreational facilities • Commercial • Computerized reservation systems • Public dining • Banquet service, lounge and entertainment areas • Shuttle transportation to airports
- 18. Lodging Overview cont’d. SalesIndicators: A. Occupancy percentage: # rooms sold # rooms available 50 = 50 % 100 B. Average Daily Rate: room revenue # rooms sold $4000_ = $80 50
- 19. Lodging Overview • YieldPercentage Facility’s success in selling its room inventory on a daily basis Rooms sold x ADR Rooms avail x Rack Rate 50 x $80 = $4,000 100 x $120 = $12,000 = 33.3 % Yield
- 20. Lodging Overview cont’d. •Revenue Per Available Room (RevPAR) Effectiveness of each room to produce a profit Room Revenue # rooms available $4000 = $40 100 or Hotel occupancy % x ADR 50 % x $80 = $40
- 21. Lodging Overview cont’d. •Levels of Service – • Full-service – ex. J.W.Marriott • reservations • on-premise dining • banquet • meeting facilities • recreation facilities • All-Suites – ex. Embassy Suites • at-home atmosphere • separate living and sleeping areas or working areas • kitchenette • wet bars
- 22. Lodging Overview cont’d. •Limited Service ex. Hampton Inns • continental breakfast • sleeping room • modest furniture • Extended –Stay ex. Homewood Suites • home-away-from-home • fully equipped kitchen • spacious bedroom • living areas • light breakfast or dinner
- 23. Lodging Overview cont’d. BusinessAffiliations • Chain affiliation • provide operational and marketing services • reservation systems • advertising • operations • management development
- 24. Lodging Overview cont’d. •Referral Property with a Chain • Assistance with management • assistance with marketing, advertising and reservation • Company-owned Property – hotel owned and operated by the chain company • Management Contract Property – operated by a consulting company that provides operational and marketing expertise and a professional staff • Independent property
- 25. Brands • Brands –allows a hotel company to create a concept in the mind of a consumer; a “mind-concept”
- 26. Independent Properties • IndependentProperty – hotel not associated with a franchise • Challenges: • Capital investment • Consultation and assistance • Marketing
- 27. Trends That FosterGrowth • Leisure time • 3-day weekends • Paid vacations • 40 hour work weeks • Early retirement • Me/pleasure concept • Shift from thinking that recreation and leisure were a privilege for wealthy only • Travel vs. isolated nature of many jobs • Discretionary income - money remaining after necessities of life are paid • increase because of two in the family • women in the workforce • not a constant to depend upon: • Unemployment • low interest rate make the purchase of high ticket items more (homes, cars, boats) more desirable and make travel less likely
- 28. Trends That FosterGrowth cont’d. • Family size/household size • Smaller families are more likely to have more discretionary income • Business travel • Oil/fuel oil prices/airfare • Fear • Business economy • Conf. call, PicTel
- 29. Trends That FosterGrowth cont’d. Female business travel Increasing segment Amenities/safety Female travelers: Travel as an experience Education – to follow-up what they have learned Culture – visit art, theatre, music, opera, ballet, museums Sports and nature Personal development/hobbies
- 30. Career Development 1. EstablishingCareer Goals Know where you want to go 2. Educational Preparation Associate Baccalaureate Distance Learning Life-long Learning 3. Work Experience 4. Professional Memberships
- 31. Career Development cont’d. Portsof entry • Marketing and sales • Front office • Food and beverage • Controller