Chapter Six Accommodations Cook Tourism The Business of

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, 3 rd 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, 3 rd 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, 3 rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Same Time, Same Place? Time-Share Condominiums: Usually 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 Flexibility to swap occupancy rights with other owners Point system is new way to sell time-shares and make swapping easier Destinations and week of year vary in popularity Condos in rental pools Cook: Tourism: The Business of Travel, 3 rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

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, 3 rd 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 Add additional “rooms” during the tourist season Shift the capital investment burden to the traveler Cook: Tourism: The Business of Travel, 3 rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Brief History of Hotel Development Boston’s Tremont House, 1829, 1 st Hotel Brown Palace in Denver, 1892, 1 st atrium Statler Hotel, 1908 added services and amenities Great Depression resulted in 85% of hotels going bankrupt End of WWII gave rise to development of hotels 1990’s had a period of growth and high profits Cook: Tourism: The Business of Travel, 3 rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

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 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, 3 rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

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, 3 rd 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, 3 rd 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 Owners retain all financial obligations Chain Operations Chain operations have common ownership or management Chains provide similar benefits as franchises Cook: Tourism: The Business of Travel, 3 rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

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 May also offer operational benefits such as cooperative purchasing and training Cook: Tourism: The Business of Travel, 3 rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

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 Guest’s needs Achieving profitable operations Cook: Tourism: The Business of Travel, 3 rd 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, 3 rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved