ACCOMMODATIONS

ACCOMMODATIONS
History
• Joseph and Mary was told
“there is no room at the inn”.
• Industrial Revolution people
migrated to the cities to work
hence the demand for
accommodations.
• 1820s large hotels were built
next to train stations.
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• Private automobiles brought about the
motor hotels or motels.
• Business travelers demanded specialized
accommodations with function rooms
or convention facilities.
• Famous hotel chains include Hilton
Hotels by Conrad Hilton; Sheraton
Hotels by Ernest Henderson and
Holiday Inn Kemmons Wilson.
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Types of Accommodation
1. Hotels
• can be a ten-room boarding
house or a building with a
thousand rooms.
• has convention and meeting
facilities
• recreation and restaurant
facilities
• room service
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2. Motels or Motor Hotels
• normally offer rooms only and free parking
to guests
• often found along highways
• cater to transient guests
• cost-conscious travelers
3. Resort Hotels
• intended for vacation travelers
• budget to luxury guests and family travelers
• often near beaches and offer more
recreational facilities and shops
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4. Pensions
• found principally in Europe
• usually family-owned
accommodation facilities
• In Germany it is called “Gasthaus”
• usually offer continental breakfast
and no other meals
• known for their informal
atmosphere
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5. Paradors
• Unique to Spain
• generally old castles, convents or
monasteries that have been converted
into hotels by the government and are
operated by the government.
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6. Condominium Hotels
• hotels with apartments
• units are sold to individuals who
are given a title to the physical real
estate.
• then the owners contract a
company to operate the hotel and
rent out the units
• the owners may stay in the units
for a specific period in a year
• the profit is then shared among
unit owners
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7. Campgrounds
• popular in the US and Europe
• usually appeal to families who travel in
recreational vehicles
• often found on government parks and
forests
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8. Bed and Breakfast
• originated in Europe
• provides a bed for the night
and breakfast the next day
• retired people with large
houses have contributed very
much to the growth of this
sector
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9. Tourist Inns
• cater to transients
• they do not normally meet the
minimum requirement of an economy
hotel
10.Apartment Hotels (Apartels)
• building containing semi or fully
furnished apartments.
• leased on along-term basis and offer
basic services similar to hotels
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11.Health Spas
• cater to people who go to
spas for medical treatment or
weight reduction
• attraction is the curative
effects of mineral springs
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12.Private Homes
• earliest form of overnight lodging for
travelers.
• provides accommodations when
hotels are overbooked during peak
seasons
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13. Timesharing
• selling the property in weeks
instead of permanent
residence
• providing more income to the
developer
• also increases the number of
potential buyers
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14.Hostels
• provide basic amenities such as bunk
beds and commonly shared toilet and
bathroom
• traveller provides his own beddings
• appeals mostly to young travellers
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Classification of Hotels
• different ways to classify a hotel
such as: location, type of guest
and price.
• Location: center-city, suburban,
airport or highway.
• Guest type: convention,
commercial, resort
• Price: economy, standard, first
class and deluxe
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Rating Systems
• most rating systems are based on the
quality of the physical structure,
furnishings, maintenance,
housekeeping and overall service.
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The following are used to rate
hotels, motels, inns and resorts.
1 star = Good, better than average
2 star = Very good
3 star = Excellent
4 star = Outstanding
5 star = One of the best in the
country
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Organization of the Lodging Industry
1. Personnel Division – recruits new
employees and administers policies and
employee benefits
2. Engineering and Maintenance – makes
necessary repairs and implements the
hotel’s energy management program.
3. Accounting Division – handles financial
activities including payment of bills,
sending out statements payroll and
compiling monthly income statements.
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4. Security Division – provides
protection for both
employees and guests.
5. Food and Beverage Division
– responsible for all the food
and beverages served.
Involved in the creation of
the menu and preparation
and cooking of all food.
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6. Marketing and Sales Division –
responsible for selling the rooms
and food service. involved in
advertising, promotional materials
and direct contacts with clients.
7. Room Division – responsible for the
front desk, telephone, reservations
and housekeeping department.
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Management Methods
A. Franchising – the franchisee
signs a contract with the
franchisor to maintain certain
operating standard and to use
the franchise name.
B. Management Contracts – the
operator leased the hotel from
the owner and then manage it.
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C. Chain Accommodation Operations
• a number of hotels are actually part of
a big chain of hotels.
• the individual units may all be owned
by a single large company, some may
be partly owned partly franchised or
may all be franchised.
• the owning company establishes a set
of standards and operating policies for
each unit to conform with.
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D. Referral Groups
• owner or operator can
remain independent but
through voluntary
membership in this
organization can achieve
many of the benefits of a
chain without losing its
independence.
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Hotel Terminology
1. European Plan (EP) – means there are
no meals included. Most commonly
used room rate quoted by the North
American hotels.
2. American Plan (AP) – means that
breakfast, lunch and dinner are
included in the quoted price. In
Europe, AP is known as full pension.
Meals are fixed menu.
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3. Modified American Plan (MAP) –
includes breakfast and dinner
but not lunch or breakfast and
lunch but not dinner. In Europe
it’s demi pension.
4. Continental Breakfast is offered
mostly in Europe and included in
the room rate. In Europe it’s
called hotel garni or pension
garni which consists of rolls,
coffee and sometimes juice.
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5. Bermuda Plan (BP) – includes both a
room and a full English or American
type of breakfast.

Room Rates
• maximum rates normally depend on
the number of occupancy, called rack
rates; posted inside the entrance door
of the guest room.
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• to encourage guests to stay,
some hotels offer special
discount rates for special
classes of guests like business
travellers, government
employees etc.
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Hotel Profitability
1. One way to determine profitability is
the room occupancy on percentage
basis.

75
100 60 %
125
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2. Occupancy can also be
determined per week, a
month or any other period.

463

100 52.9%

125x7
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• In general hotels are considered
profitable if they can operate with an
average annual occupancy of 65% or
higher.
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3. Double occupancy rooms –
percentage of occupancy and
specific revenue for hotels
with double occupancy rooms
may be determined by:
713
1.54
463
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• The 1.54 double-occupancy ratio
means that 54% of the rooms were
double occupied.
4. Average rate per room occupied – a
way of measuring maximization of
revenue.
5. Average daily rate per guest
6. Average length of stay
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7. Break even point – point at
which a business will make
neither a profit nor a loss.

Fixed Cost
Contribution Margin
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• Fixed cost are those that stay the
same regardless of the volume of
business.
Ex: Management salaries, interest,
depreciation, insurance, property
taxes, physical plant maintenance.
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• Contribution margin is the
average room less the variable
costs of having a room
occupied.
• Variable costs are those that
change depending on the
number of guests.
Ex: Maid wages, linen, laundry
and supplies
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Accommodation Reservation
 Overbooking – selling more than the
actual rooms available.
o hotels do this to avoid empty rooms
because of “no shows”.
 Registration cards – used as a marketing
tool. these cards contain the guest
information such as name, address,
origin etc. Info are used to send
promotional materials and profiling.
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Accommodation Promotion
1. Promotion through travel trade
members including tour
wholesalers and travel
agencies.
2. Hotels also use the direct mail
approach.
3. Newspaper, magazines, radios
televisions and billboards.