Resort Management 6


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Resort Management 6

  1. 1. Chapter 6 Major Recreational Activities and Facilities World of Resorts: From Development to Management Third Edition (424TXT or 424CIN)© 2010, Educational Institute
  2. 2. Competencies forMajor Recreational Activities and Facilities 1. Identify factors that affect how a sports and recreation mix is chosen. 2. Detail the many factors involved in developing and operating golf facilities at a resort. 3. Detail the many factors involved in developing and operating tennis facilities at a resort. 4. Detail the many factors involved in developing and operating a ski resort. 5. Identify several alternative sports and explain why they are significant.© 2010, Educational Institute (continued) 2
  3. 3. Competencies forMajor Recreational Activities and Facilities (continued) 6. Detail the many factors involved in developing and operating a resort with boating facilities and a marina. 7. Detail the many factors involved in developing and operating swimming facilities at a resort. 8. Detail the many factors involved in developing and operating health club and spa facilities at a resort. 9. Describe the role that infrastructure and striking natural surroundings play in the success of a resort’s recreational offerings.© 2010, Educational Institute 3
  4. 4. Considerations in Deciding Recreational Activities/Facilities to Offer • What is the nature of the resort? • What are the primary market segments to be served? Niche markets? • Should the resort develop a specific sport or recreation as a signature draw? • Will climatic conditions (on the average) in the area support the signature sport(s) or recreation for an adequate number of revenue days? • Will there be outdoor or indoor facilities?© 2010, Educational Institute (continued) 4
  5. 5. Considerations in Deciding Recreational Activities/Facilities to Offer (continued) • What type of access can be created for people with disabilities? • What is the acreage of land required for target sports and recreational activities? • What are the environmental constraints? • Are there unusual land forms offering distinctive advantages for a specific sport or recreation? • How much capital will be required?© 2010, Educational Institute (continued) 5
  6. 6. Considerations in Deciding Recreational Activities/Facilities to Offer (continued) • What is the cost of recreational and maintenance equipment, parts, supplies, and accessories? • What are the costs of energy and other utilities? • Are tournaments involved? What is the cost of promotion? • What are the liability coverage requirements? • Will recreational activities be self-managed or outsourced?© 2010, Educational Institute 6
  7. 7. Classifications of Resorts by Seasonality • Summer resorts • Cold winter resorts • Warm winter resorts • Four-season resorts© 2010, Educational Institute 7
  8. 8. Elements of a Full-Service Golf Course • Clubhouse • Locker rooms, restrooms, and showers • Dining room and snack bar • Short-order kitchen with pantry and employee restroom • Golf pro’s office • Pro shop • Lobby • Bar • Lounge and card-playing area • Areas for club and cart storage, maintenance, and repair© 2010, Educational Institute (continued) 8
  9. 9. Elements of a Full-Service Golf Course (continued) • Eighteen-hole golf course • Practice fairway • Small putting green • Maintenance building • Golf course superintendent’s office, restroom, and shower • Maintenance crew’s locker room, restroom, and showers • Repair shop and areas for equipment and materials storage© 2010, Educational Institute 9
  10. 10. Golf Course Development Costs • Course construction costs: Clearing and grubbing, grading and mobilization, drainage, rough and finish shaping, practice green, tee construction, fairway bunkers, bridge construction, grassing and seed preparation, cart path construction, lakes and water features, irrigation system, pumping plant, and grow- in period (maturation). • Design and architecture-related costs: Architect’s fee, permits, financing, sand for traps, rest stations, maintenance building, maintenance equipment, and clubhouse.© 2010, Educational Institute (continued) 10
  11. 11. Golf Course Development Costs (continued) • Owner/developer preferences: Scope of amenities, qualitative factors, choice of golf architect (signature name or general designer), and equipment options (golf carts, etc.). • Equipment-related costs: Mowing equipment, tractors and trucks, maintenance equipment, golf course accessories, general tools, and hand tools.© 2010, Educational Institute 11
  12. 12. Factors Affecting the Provision of Tennis Facilities • Estimated guest demand and maximum number to be accommodated • Actual or potential tennis-playing populations within one to one-and-a-half hour’s drive • Number of competing public and private tennis facilities nearby • Land requirement • Weather patterns—number of fair days, average temperatures, and wind factor—if the courts are to be constructed outdoors • Length of the resort’s operating season© 2010, Educational Institute (continued) 12
  13. 13. Factors Affecting the Provision of Tennis Facilities (continued) • Length of the playing day • Possible demand for night tennis • Court design and orientation • Type of court playing surface—fast, moderately fast, or slow • Clubhouse for sale/rental of equipment, video lessons, etc. • Management by tennis professional • Tournaments and other promotional opportunities© 2010, Educational Institute 13
  14. 14. Advantages of Centralized Tennis Courts • It encourages socializing and patronage of revenue-generating services. • It decreases the cost of construction and the amount of landscaping needed. • It allows for easier court maintenance. • It improves management efficiency through better control of court reservations and player behavior. • It optimizes the scheduling of lessons and other tennis-related activities.© 2010, Educational Institute 14
  15. 15. Roles and Responsibilities of the Tennis Director • Providing leadership in developing an innovative tennis program at the resort • Promoting and publicizing tennis to build the resort’s image • Inviting tournaments consistent with general management policy • Developing and directing tennis-related activities for guests© 2010, Educational Institute (continued) 15
  16. 16. Roles and Responsibilities of the Tennis Director (continued) • Supervising the daily management and control of court reservations and monitoring player conduct • Managing tennis revenues (player fees, instruction fees, rentals) • Controlling operating costs • Supervising proper maintenance of the courts© 2010, Educational Institute 16
  17. 17. Features of a Generic Vacation Ski Resort • Drops: In the U.S., 3,000–4,000 vertical feet; in the Northeast, 1,500 vertical feet; in the Midwest and South, no standard has been set. • Ski site orientation: North or northeast exposure maximizes snow retention and protects against wind. • Snow requirement: Area should receive at least 200 inches of new snow per season or have average sub-freezing temperatures for snowmaking. • Slope grades: For intermediate skiers, terrain gradients should be 25–45 percent; for beginners, 25 percent or less; for experts, 50–70 percent.© 2010, Educational Institute (continued) 17
  18. 18. Features of a Generic Vacation Ski Resort (continued) • Climate/temperature: Average temperature must be cold enough to maintain snow for skiing, generally sunny during the day, and most of the snowfall should occur at night. • Water: Must be an adequate source of water to support anticipated level of snowmaking. • Base terrain: Must be adequate base terrain to accommodate amenities planned for the total ski lift facility.© 2010, Educational Institute 18
  19. 19. Necessary Factors for a Profitable Ski Resort • Seasonality: The site must have summer use potential. • Access: The site must be readily accessible by road and air. • Distance: Research indicates that people will drive a one-way distance of up to three hours to a day ski area and up to eight hours to a weekend area, but will drive or fly thousands of miles to major vacation ski resorts.© 2010, Educational Institute 19
  20. 20. Three Basic Types of Lift Systems 1. Aerial lifts: Aerial tramways, funitels, funifors, gondola lifts, chair lifts 2. Surface lifts: T-bars, J-bars, disks or platters, rope tows 3. Cable railways: Funiculars (also known as inclined railways), plane railways, and cliff railways© 2010, Educational Institute 20
  21. 21. Common Characteristics of Ski Resorts • Heavy capital investment in fixed assets and lift equipment • Heavy dependence on lift ticket sales, which often account for more than half of the revenue stream • High fixed costs in relation to revenue—permanent staff salaries, maintenance, depreciation, and overhead • Low variable costs in lift revenue—economy of scale produces only marginal cost benefits • Low cash flow, making it difficult for all but larger, diversified companies to attract investment in capital© 2010, Educational Institute 21
  22. 22. Necessary Provisions of a Marina/Dock Area • A high degree of safety from wind, tide, and current action that could damage boats. • A sheltered channel for entrance and exit, wide and deep enough to handle a range of boat sizes and types. • Ease of accessibility to open waters.© 2010, Educational Institute 22
  23. 23. Cost Factors in Calculating Initial Capital Requirements • Dredging, filling, and other work required to prepare the site for the marina (channels, basin, and slips) • Bulkhead walls and all shore protection • The breakwater system and related items for offshore protection • Options for disposing of wastewater • Piers, wharves, catwalks, hoists, floats, and similar items related to the basic marina structure • Buildings, service stations, storage sheds, and related equipment© 2010, Educational Institute (continued) 23
  24. 24. Cost Factors in Calculating Initial Capital Requirements (continued) • Roads, walkways, parking areas, utility systems and hookups, and landscaping • Stock of merchandise for sale—gasoline, lubricants, engines and other parts, safety gear, fishing equipment, boating accessories, etc. • Engineering, architectural, and other planning costs • Legal fees related to the preparation of all required governmental planning documents (including environmental impact statements) • Inspection and supervision • Operation and maintenance cost and a sinking fund© 2010, Educational Institute 24
  25. 25. Agencies/Regulatory Bodies Concerned with Beaches, Marinas, and Docks • U.S. Army Corps of Engineers • U.S. Departments of Agriculture and the Interior • Federal, state, and local environmental protection agencies • County government • Local chambers of commerce or other governmental agencies© 2010, Educational Institute 25
  26. 26. Components of Marina Vacation Resorts • Covered and open berths • 110- to 120-volt single-phase and 220-volt three-phase power at most slips • Dial telephone • Television cable • Public address system • Refuse service • Boat rentals • Dry storage rental • Dredged entrance channel • Fuel pumps for unleaded gasoline, diesel, and premixed outboard fuel, oil-changing and battery service, and services for minor boat repairs© 2010, Educational Institute (continued) 26
  27. 27. Components of Marina Vacation Resorts (continued) • Launching facilities for boats up to a specified length • Full tackle and marina shop • Fishing licenses • Restroom stations with showers • Laundry facilities • Waterfront grill • Luxury restaurant and lounge • Weather station • Fish photo gallery • Shuttle service between hotel and marina • Access to hotel services© 2010, Educational Institute 27
  28. 28. Seven Main Types of Spas • Destination spa • Resort/hotel spa • Day spa • Medical spa • Mineral springs spa • Club/fitness spa • Cruise ship spa© 2010, Educational Institute 28
  29. 29. Potential Benefits of On-Premises Health and Fitness Facilities • Increased occupancy • Competitive advantage • Increased room rates • Marketing asset • Positive image© 2010, Educational Institute 29
  30. 30. Factors Affecting the Success of Health and Fitness Facilities 1. Concept and philosophy 2. Objectives 3. Market 4. Program 5. Revenue projections 6. Costs 7. Facility design 8. Financing 9. Management 10. Planning 11. Operations© 2010, Educational Institute 30