Chapter Six: Accommodations

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

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

Same Time, Same Place?

Time-Share
Usually

Condominiums:

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

Right of ownership evidenced by the transfer of a certificate of title. The buyer has the right to sell, lease, or bequeath the property or interest.

Flexibility

to swap occupancy rights with other

owners Point system is new way to sell time-shares and make swapping easier
Resort Condominium International

http://www.rci.com/index

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All R

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, 3rd 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

http://www.gocampingamerica.com/map.html

Add

additional rooms during the tourist season Shift the capital investment burden to the traveler

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle Riv

Brief History of Hotel Development

Bostons Tremont House, 1829, 1st Hotel Brown Palace in Denver, 1892, 1st atrium
http://www.brownpalace.com/

Statler Hotel,1908 added services and amenities

http://ah.phpwebhosting.com/h/statler/hotel/index.html

Great Depression resulted in 85% of hotels going bankrupt End of WWII gave rise to development of hotels 1990s had a period of growth and high profits Lets see how AHLA says
http://www.ahla.com/products_lodging_history.asp

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle Riv

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

http://www.ahla.com/products_products.asp

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

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, 3rd 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, 3rd 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 http://www.hotel-online.com/News/PR2002_4th/Dec02_CanadianReview.html Owners retain all financial obligations Chain operations have common ownership or management Chains provide similar benefits as franchises

Chain Operations

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. A

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

http://www.bestwestern.com/newsroom/factsheet_countrydetail.asp

May

also offer operational benefits such as cooperative purchasing and training

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All R

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 Guests needs Achieving profitable operations

Cook: Tourism: The Business of Travel, 3rd 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, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All R