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HM 101 Ch09

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HM 101 Ch09

  1. 1. Lodging: Meeting Guest Needs Chapter 9 Copyright © 2010 by John Wiley & Sons, Inc. All Rights Reserved
  2. 2. LODGING • The lodging industry has been in existence ever since the first traveler looked for a place to spend the night (thousands of years ago) • Over the years, these facilities have evolved and have been known as hotels, motels, inns, taverns, ordinaries, etc. • We use the term “lodging” to characterize the overall category of facilities
  3. 3. LODGING TODAY The lodging industry is a huge segment, by any measure  Over 49,500 properties  Over 4.6 million guest rooms  Generates over $40.6 billion in revenues  Supports more than 7.5 million jobs
  4. 4. THE EVOLUTION OF LODGING • Structures built specifically for overnight accommodation have been around for thousands of years dating back to Mesopotamia which was a center for commerce • Hotels in the US date back to the late 1700s and the early 1800s including hotels in Boston, New York, Chicago, and Philadelphia • Important features of early hotels included location and accessibility to transportation
  5. 5. THE EVOLUTION OF LODGING • “Grand” hotels were later built in resort areas, city centers, and along transportation routes – Waldorf Astoria, Palmer House, Tremont Hotel • The Tremont (in Boston) was the first to offer guests their own room! • Other “Grand” hotels were built in the 1800s and early 1900s, each offering a new amenity or feature
  6. 6. THE EVOLUTION OF LODGING • First developed in California in 1925, motels (Motor Hotels) are a relatively recent development • Holiday Inn was the first well known chain of “motels” built in the US (1952) • Holiday Inn was started by Kemmons Wilson after a family vacation • There have since developed many different types of lodging facilities focusing on different customer needs (example: guest suites)
  7. 7. CRITERIA FOR CLASSIFYING HOTELS • Price (or service) • Function • Location • Market segment • Distinctiveness of style or offerings
  8. 8. HOTELS CLASSIFIED BY PRICE • Limited-service hotels • Select-service • Full-service hotels • Luxury hotels
  9. 9. CLASSIFYING HOTELS BY PRICE LIMITED-SERVICE HOTELS • Usually no public meeting space and limited food and beverage • Typical ADR is between $80.00 and $90.00 and the average number of rooms is 122 • Examples include Holiday Inn Express, Comfort Inn, Rodeway Inn, and Fairfield Inn
  10. 10. CLASSIFYING HOTELS BY PRICE SELECT-SERVICE HOTELS • Relatively new addition to lodging; akin to addition of fast-causal restaurants in the food service sector • With 100 to 200 guest rooms, focus is on value and a cheaper alternative to full- service properties • Hot breakfast service and sometimes other food service is offered along with limited meeting space
  11. 11. CLASSIFYING HOTELS BY PRICE FULL-SERVICE HOTELS • Have a wide range of facilities and services including public meeting space and choice of food and beverage • Typical ADR is over $150.00 • Business and leisure travelers represent 57.3 percent of room sales • Average size is 272 rooms
  12. 12. CLASSIFYING HOTELS BY PRICE LUXURY HOTELS • Have a wide range of facilities and services offered in an upscale environment including concierge and multiple dining options • Rooms number between 150 and 500 • Higher ratio of employees to guest room • Typical ADR is over $225.00 • Industry leaders include Ritz-Carlton, Four Seasons, and Fairmont
  13. 13. CLASSIFYING HOTELS BY FUNCTION • Convention hotels – Typically more than 500 rooms – Often located near convention centers • Commercial hotels – Smaller than convention hotels with 100 to 500 guest rooms – Typically in downtown locations
  14. 14. CLASSIFYING HOTELS BY LOCATION • Downtown hotels • Suburban hotels – Typically have 200 to 350 guest rooms and interior corridors • Highway/interstate hotels – 100 to 250 guest rooms • Airport hotels – 250 to 550 guest rooms
  15. 15. HOTELS CLASSIFIED BY MARKET SEGMENT Where different types of hotels have been built to respond to specific traveler needs  Executive conference centers  Resorts  Casino hotels  Health spas  Vacation ownership
  16. 16. CLASSIFYING HOTELS BY OFFERINGS • All-suite hotels • Extended stay hotels • Historic conversions • Bed and breakfast inns • Boutique hotels The beautifully restored boutique hotel, the Regent Wall Street
  17. 17. PRINCIPAL CUSTOMER TYPES • Leisure or vacation travelers • Transient business travelers ─ individual traveling alone • Business travelers attending conferences • International travelers • SMERF – social, military, educational, religious, and fraternal
  18. 18. WHAT’S CHANGING? • Increasing competition (subject of Chapter 12) • In-room technology • Unique hotels • Increased service levels • Blurring of segments
  19. 19. WHAT’S CHANGING? • Increased business travel • Increased occupancy in city hotels • Rising room rates • Condo/time share conversions

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