The Lodging Industry

Understanding Lodging
The lodging
industry in the
United States
has always been
strongly
influenced by
changes in
transportation.
 Mid-1600s
 Stage coach routes established
 Coaching inns became popular
resting places for travelers
 Expected a bed and a meal for the
evening
 1794-1828
 1794 City Hotel in
New York City opens
 The first building in
the US designed
specifically as a hotel.
 1828 The Tremont
House, first grand
hotel, was built in
Boston.
 First hotel to offer
private rooms with
locking doors.
 The Railroad
 Inns, taverns and foodservice facilities
located near railway stations began to
grow.
 Famous resorts because of the railway
include Hotel del Coronado near San Diego
and the Greenbrair Resort in West
Virginia. Yellowstone was also a railway
resort.
 Conrad Hilton
 A banker in New Mexico purchased
his first hotel around 1900. It was in
Cisco Texas.
 This began his chain of hotels.
 Other hotels around this time: Ritz
Carlton in Boston and the Plaza in
New York City.
 1950’s
 Increased availability and popularity of the
automobile and a new interstate freeway
system made cross country vacations a
popular option.
 Motels sprang up along highways offering
travelers a place to bathe, sleep and eat.
 The Airline Industry
 1958 commercial airlines became popular.
 Builders moved toward airports for hotels
and restaurants.
 Lodging Operations Organization
 Front of the house: employees who have
direct contact to the public
 Back of the house: supporting operations,
behind the scenes
OR
 Administrative Departments: Manage
business (accounting, human resources,
training, marketing, sales)
 Service Departments: responsible for
serving guests directly
Administrative Departments
 General Manager (GM)
 Accounting and
Financial Management
(Controller)
 Human Resources
 Marketing and Sales
 Service Departments
 Front Office
 Housekeeping
 Engineering and
Facility
Maintenance
 Security
 Food and Beverage
(F & B)
 Leisure Travelers
 On vacation
 Shopping, fine dinning, sightseeing,
sports events, relax
 May provide activities for children,
on-site recreation or health facilities
 Business Travelers
 Looking for well lit work spaces,
telephones, modems, copiers, fax
machines.
 Meeting facilities
 24 hour service - valet parking,
secure lodging
 Amenities
 Restaurants  Cable Television
 Parking Garages  Pay per view
 Boutiques  Bathrobes
 Barber shops  Gift shops
 Dry Cleaners  Kitchens
 Florists  Computer modems
 Swimming pools  Spa
 Room service  Recreational
activities
 Types of Properties
 Full Service
 Luxury
 Economy
 Mid-priced
 All-suite
 Resorts
 Bed and Breakfast
 Terms to Know
 Folio
 CRS Central
Reservation System
 Room Inventory
 Block
 Rooms Forecast
 No-Shows
 Overbook
 Understays
 Yield Management
 Rack Rate
 Hubbart Formula
 Helps managers set rates

Operating expenses + Desired return on investment-Other Income

_______________________________________________________

Projected room sales

=
Room Rate