Chapter Six: Accommodations
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Learning Objectives
Explain the importance of accommodations to the tourism industry Identify and describe the major classifications of accommodations Identify and describe the primary ownership patterns of lodging properties Describe the basic organizational structures in lodging properties Describe the differences between front-of-the-house and backof-the-house operations Identify and describe key marketing, management, and financial considerations in lodging operations Demonstrate knowledge of basic accommodation terminology
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Brief History of Accommodations
Age-old profession Started as way stations for travelers needing safe shelter for the night Evolved into local gathering places for meetings and entertainment Inns expanded in size and became hotels Development in lodging facilities closely followed improvements in transportation
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Oh, So Many Choices
No two are exactly alike, Bed and Breakfasts (B&B), Started in small towns and similar to early small inns
B&Bs exist worldwide-often supplement family income Wide variety of B&B establishments Referral organizations have evolved to assist B&B owners in marketing Internet has been effective in reservation booking Personal attention and breakfast are major distinction
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Same Time, Same Place?
Time-Share
Usually
Condominiums:
have amenities similar to a luxury apartment Vacation ownership is appealing to people who can plan in advance and want to be assured of accommodations at set times at specific locations Fee-simple or right-to-use basis
Right of ownership evidenced by the transfer of a certificate of title. The buyer has the right to sell, lease, or bequeath the property or interest.
Flexibility
to swap occupancy rights with other
owners Point system is new way to sell time-shares and make swapping easier
Resort Condominium International
[Link]
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All R
Your Attention Please!
Conference Centers
Accommodations built to serve the needs of meeting attendees Service is designed to enhance the meeting experience
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Enjoying the Great Outdoors
Camping
and RV Parks
Camping
is no longer roughing it; often find amenities similar to other forms of accommodations
[Link]
Add
additional rooms during the tourist season Shift the capital investment burden to the traveler
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle Riv
Brief History of Hotel Development
Bostons Tremont House, 1829, 1st Hotel Brown Palace in Denver, 1892, 1st atrium
[Link]
Statler Hotel,1908 added services and amenities
[Link]
Great Depression resulted in 85% of hotels going bankrupt End of WWII gave rise to development of hotels 1990s had a period of growth and high profits Lets see how AHLA says
[Link]
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle Riv
Classification and Rating systems
Organizations
such as American Hotel and Motel Association have developed rating systems to clarify the amenities and services at a type of lodging property
[Link]
Classification
systems provide managers with reference groups and benchmarks against which they can evaluate performance Best practices have been identified for a variety of hotel operations
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All R
Seven Categories of Lodging Properties
Limited-service budget hotels Limited-service economy motels Full-service mid-priced hotels and motels Full-service upscale hotels Luxury hotels All-suite hotels Extended-stay hotels
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Organizing for successful operations
Going it alone
Small independent properties, managed by owners Not bound by corporate policies so have complete decisionmaking authority No corporate support/resources
Franchising
Provide use of brand name, reservation system and management systems from parent company in return for royalties and fees Franchisee gives up some decision-making freedom Franchising in the lodging business is still rare in Europe and Asia
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Organizing for successful operations, continued
Management Contracts
Owners of lodging property hire a company to manage/operate the property Management company receives percent of revenue as compensation [Link] Owners retain all financial obligations Chain operations have common ownership or management Chains provide similar benefits as franchises
Chain Operations
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. A
Organizing for successful operations, continued
Strength
in numbers: Referral associations
Referral
organizations offer freedom of going it alone plus some benefits of chains Marketing, especially through central reservations system and widely distributed member directory, is the primary benefit
[Link]
May
also offer operational benefits such as cooperative purchasing and training
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All R
It All Begins With Sales
Goal of sales is to attract future bookings Variety of methods to gain sales All employees are involved in the sales process Providing a Home Away From Home Meeting Guests needs Achieving profitable operations
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Using Technology to Tie it All Together
Property
Management systems integrate all of the information needed to manage Need such systems for communication among different functional areas Enterprise systems further combine information for multiple properties
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All R