The Lodging Industry
Download
Report
Transcript The Lodging Industry
Standard 2: Objective 1
Travel and Tourism Marketing
THE LODGING
INDUSTRY
Evolution of the Hotel~
INN – Ancestor to the hotel
Small, people shared rooms AND beds. Cleanliness was a
problem – bed bugs/fleas!
Indoor plumbing – 1800’s
Hotel Industry Milestones
U.S.A. and Canada – First Hotels
USA First grand hotel – Boston’s
TREMONT HOUSE. $2/day
which included 4 meals!
Started the “Chain Hotel”
concept and private baths in
each room –
Ellsworth Milton Statler
Greatest Hotelier of all time –
Ce’sar Ritz
Hotel Industry Milestones cont.
First No-frills motel –
Motel 6 – 1963 ($6/night)
First Atrium Motel -
Hyatt Regency in Atlanta
Hotels traditionally were
established near
TRANSPORTATION
CENTERS
Conrad HILTON…
Sometimes called, “The
Biggest Hotel Man in
the World”
He catered to the American
Business Traveler
Also opened up the
Caribbean for leisure travel
Hotel Classifications
Location
Guest Type
Price
Style and Function
HOTEL Location
Resorts – great locations, lots of amenities/activities
Airport – business or leisure AND airline employees
Freeway access – usually for one night guests
traveling to another destination
Downtown (bigger cities) – near shopping or business
Conference Centers - convention/meetings
HOTEL Guests
Business Guests –
Business, conventions,
meetings
Leisure Guests –
Vacation for pleasure
HOTEL Price
BUDGET (or Economy): Inexpensive, limited
services (Comfort Inn, Motel 6)
MID PRICE: More services than budget (Holiday
Inn Express, Courtyard)
UPSCALE (luxury): Great locations, many services
and amenities (Grand America, Hyatt Regency)
HOTEL Style and Function
All Suite: Larger rooms,
separate living areas
Extended Stay: More
space for guests needing
to stay for longer periods
of time (kitchenettes)
Bed-n-Breakfasts: Fewer
rooms, lots of personal
service AND cooked
breakfast.
HOTEL Style and Function
Spas: Health related services (Biggest Loser at
Fitness Ridge)
Vacation Properties (Time Shares): Guests can
“buy” a lodging location for period of time
Retreat Centers: Business travelers who want a
secluded location.
Yield Management
Setting different
prices for goods
and services in an
effort to maximize
revenue when
limited capacity is
a factor.
Yield Management Pricing
Average Daily Balance (ADR)
Occupancy percentage (OCC%)
Total sales / total number of rooms = ADR
Number of rooms sold / # of rooms available = OCC%
Revenue per available room (RevPAR)
Revenue / total rooms available = RevPAR
Room Rate Variables
Room size and amenities
Location of the room (ocean view or parking lot)
Number of people in the room
Group, corporate or convention rate
Taxes, (each city is different), resort & service fee’s
Season
Cost of operation and quality of services
Currency fluctuations
Hotel prices are quoted WITHOUT taxes, service
charges or resort fee’s.
Hotel Room Rates
Rack Rates – price of a room “originally”
Frequent-guest incentives – rewards for
members with each stay. Can earn points for
free nights.
Weekend Rates – in cities, where business
traveler’s usually stay.