chapter 6 accomodation
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Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Chapter Six:Chapter Six:
AccommodationsAccommodations
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Learning ObjectivesExplain the importance of accommodations to the tourismindustry
Identify and describe the major classifications ofaccommodations
Identify and describe the primary ownership patterns of lodgingproperties
Describe the basic organizational structures in lodgingproperties
Describe the differences between front-of-the-house and back-
of-the-house operationsIdentify and describe key marketing, management, andfinancial considerations in lodging operations
Demonstrate knowledge of basic accommodation terminology
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Brief History of AccommodationsAge-old profession
Started as way stations for travelers needing safe
shelter for the nightEvolved into local gathering places for meetings andentertainment
Inns expanded in size and became hotels
Development in lodging facilities closely followedimprovements in transportation
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Oh, So Many ChoicesNo 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 establishmentsReferral organizations have evolved to assist B&B owners inmarketingInternet has been effective in reservation bookingPersonal attention and breakfast are major distinction
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Same Time, Same Place?Same Time, Same Place?Time-Share Condominiums:Time-Share Condominiums:Usually haveUsually have amenities similar to a luxury apartmentamenities similar to a luxury apartment
Vacation ownership is appealing to peopleVacation ownership is appealing to people who canwho can
plan in advanceplan in advance and want to be assured ofand want to be assured of
accommodations at set times at specific locationsaccommodations at set times at specific locations
Fee-simple or right-to-use basisFee-simple or right-to-use basis Right of ownership evidenced by the transfer of a certificate of title. TheRight of ownership evidenced by the transfer of a certificate of title. The
buyer has the right to sell, lease, orbuyer has the right to sell, lease, orbequeathbeq
ueath the property or interest.the property or interest.
Flexibility to swap occupancy rights with otherFlexibility to swap occupancy rights with other
ownersownersPoint system is new way to sell time-shares andPoint system is new way to sell time-shares and
make swapping easiermake swapping easierResort Condominium InternationalResort Condominium International
http://www.rci.com/indexhttp://www.rci.com/index
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Your Attention Please!
Conference Centers
Accommodations built to serve the needs of
meeting attendeesService is designed to enhance the meetingexperience
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Enjoying the Great Outdoors
Camping and RV ParksCamping 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
seasonShift the capital investment burden to the
traveler
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Brief History of Hotel DevelopmentBrief History of Hotel Development
Bostons Tremont House, 1829, 1st Hotel
Brown Palace in Denver, 1892, 1st atriumhttp://www.brownpalace.com/
Statler Hotel,1908 added services andamenities http://ah.phpwebhosting.com/h/statler/hotel/index.html
Great Depression resulted in 85% of hotelsgoing 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
http://www.brownpalace.com/http://ah.phpwebhosting.com/h/statler/hotel/index.htmlhttp://www.ahla.com/products_lodging_history.asphttp://www.ahla.com/products_lodging_history.asphttp://ah.phpwebhosting.com/h/statler/hotel/index.htmlhttp://www.brownpalace.com/ -
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Classification and Rating systemsClassification and Rating systemsOrganizations such as American Hotel andOrganizations such as American Hotel and
Motel Association have developed ratingMotel Association have developed ratingsystems to clarify the amenities and services atsystems to clarify the amenities and services at
a type of lodging propertya type of lodging property http://www.ahla.com/products_products.asphttp://www.ahla.com/products_products.asp
Classification systems provide managers withClassification systems provide managers with
reference groups and benchmarks againstreference groups and benchmarks against
which they can evaluate performancewhich they can evaluate performance
Best practices have been identified for a varietyBest practices have been identified for a variety
of hotel operationsof hotel operations
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Seven Categories of LodgingProperties
Limited-service budget hotels
Limited-service economy motels
Full-service mid-priced hotels and motels
Full-service upscale hotels
Luxury hotelsAll-suite hotels
Extended-stay hotels
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Organizing for successfuloperations
Going it alone
Small independent properties, managed by ownersNot bound by corporate policies so have complete decision-making authority
No corporate support/resources
FranchisingProvide use of brand name, reservation system andmanagement systems from parent company in return forroyalties and fees
Franchisee gives up some decision-making freedom
Franchising in the lodging business is still rare in Europe and
Asia
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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
Chain operations have common ownership or management Chains provide similar benefits as franchises
O i i f f lO i i f f l
http://www.hotel-online.com/News/PR2002_4th/Dec02_CanadianReview.htmlhttp://www.hotel-online.com/News/PR2002_4th/Dec02_CanadianReview.htmlhttp://www.hotel-online.com/News/PR2002_4th/Dec02_CanadianReview.html -
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Organizing for successfulOrganizing for successful
operations,operations, continuedcontinued
Strength in numbers: Referral associationsStrength in numbers: Referral associationsReferral organizations offer freedom of going itReferral organizations offer freedom of going it
alone plus some benefits of chainsalone plus some benefits of chainsMarketing, especially through central reservationsMarketing, especially through central reservations
system and widely distributed member directory, issystem and widely distributed member directory, isthe primary benefitthe primary benefit http://www.bestwestern.com/newsroom/factsheet_countrydetail.asphttp://www.bestwestern.com/newsroom/factsheet_countrydetail.asp
May also offer operational benefits such asMay also offer operational benefits such as
cooperative purchasing and trainingcooperative purchasing and training
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It All Begins With SalesGoal of sales is to attract future bookings
Variety of methods to gain sales
All employees are involved in the sales processProviding a Home Away From Home
Meeting Guests needs
Achieving profitable operations
U i T h l t Ti it AllU i T h l t Ti it All
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Using Technology to Tie it AllUsing Technology to Tie it All
TogetherTogether
Property Management systems integrate all ofProperty Management systems integrate all ofthe information needed to managethe information needed to manage
Need such systems for communication amongNeed such systems for communication among
different functional areasdifferent functional areasEnterprise systems further combine informationEnterprise systems further combine information
for multiple propertiesfor multiple properties