History of Hotels

28 April 2006

Hospitality
From the French word hospice

to provide for the weary take care of those traveling

Early Hospitality
Greek/Roman culture

Noted as early as 40 BC Code of Hammurabi Social and religious purposes

After the Fall of the Roman Empire civilized tourism began to re-emerge around 1500. During the Dark Ages lost of civilization Coffee houses
Sober up citizenry
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16th and 17th Century

Standard Design was used for construction lodging facilities
Individual rooms VIP Tavern Common area for servants Stables Courtyard in center of plan

The New World (19th Century)

Marked by Technological Innovations
Indoor Plumbing Astor Hotel, NYC Architectural design that allowed more rooms The Palace, San Francisco Indoor lighting Astor Hotel, NYC Telephones

Development of Resorts
Homestead Hot Springs, VA Greenbrier White Sulphur Springs, WV The Grand Hotel Mackinaw Island, MI
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Nineteenth Century
1898 Savoy Hotel opened in London

General Manager was Cesar Ritz Chef was Auguste Escoffier Together these men set the standard for world-class service

Lodging (Hotel) Sector

Range of lodging property alternatives
Destination resorts Full-Service Hotels Mid-Service Hotels Limited Service Hotels

Close Look at Lodging Organizations

Year 2000:
By location
Urban Suburban Highway Airport Resort

Property / Room Breakdown

Property
10.2% 33.6% 42.2% 7.7% 6.3%

Rooms
16.0% 30.4% 31.0% 10.2% 12.4%

By rate
Under $30 $30 - $44.99 $45 - $59.99 $60 - $85 Over $85 13.8% 26.9% 34.1% 16.2% 9.0% 3.3% 18.1% 27.3% 25.3% 26.0%

By size
Under 75 rooms 75 149 rooms 150 299 rooms 300 500 rooms 8 Over 500 rooms 51.5% 33.5% 10.9% 2.8% 1.3% 22.5% 35.1% 21.3% 9.9% 11.2%

Typical Lodging Guests

transient business travelers
attending a conference/ group meeting

28.8%
25.3%

24.6%
21.8%

traveling for other reasons (for example, personal, family, or special event)
vacation

Lodging Industry Characteristics

Emphasis on safety, cleanliness & service
intangible aspects of the purchase decision

Inseparability of manufacture & sales

A room exists & is sold at the same site

Perishability Repetitiveness
No possibility to inventory Service tasks are repeated daily Difficult to reduce labor required to provide customer service
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Labor Intensive

Operating Challenges
Labor Shortages
Recruiting and Retaining employees

Cost Containment
Doing more with less

Increased Competition
Commodity

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Marketing Challenges
Market segmentation Blurring of brand differences Sophisticated consumers Pressure to increase services/amenities

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Technological Challenges
Online reservations Innovative services in guest rooms Data mining Revenue Management

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