hotel operations-1 (chapter-2).docx

8/10/2019 Hotel operations-1 (chapter-2).docx

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Introduction to Hotel operations -1Prepared by: Vishnu Narayanan.VCourse Code: TMgt-M1031Program Name: BA in Hotel ManagementChapter -2

Syllabus

Classification of Hotels

By Size

By Level of Service

By ownership and affiliation

By Purpose of Visit

Introduction

Hotel is an establishment selling service-food, drink and shelter. The value andpotentially of a hotel is assessed by the size, location the number of rooms and

other revenues earning points it possesses. The classification of hotels within theindustry is a complicated task. Hotel can be classified on different basis

1. Classification of Hotels Based on Size

The number of guest rooms in a hotel is a criterion to classify hotels. Hotels can begrouped into the following categories on the basis of the number of rooms

Small Hotel: In Ethiopia, hotels with twenty five rooms or less are classified as

small hotels, e.g., Hotel forty springs, Arba Minch Bekalamala Hotel, Arba MinchHowever, in the developed countries of Europe and America, hotels with less than100 rooms are considered small. These hotels provide clean and comfortableaccommodation but may not provide upmarket facilities, such as swimming pool,restaurant, bar, etc.

Medium Hotel: Hotels with twenty-six to hundred rooms are called medium hotels,e.g., Hotel Ezhana ,Arba Minch


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However, in developed nations, hotels with up to 300 rooms are termed medium-sized.

Large Hotel: In Ethiopia, hotels with 101 to 300 guest rooms are regarded aslarge hotels, whereas, hotels with 400 600 rooms are termed as large hotels in thedeveloped world.

Very Large Hotel: Hotels with more than 300 guest rooms are known as verylarge hotels in Ethiopia, e.g., Radisson Hotel, Addis Ababa. In developed nations,hotels with 600 1,000 rooms may be considered very large.

2. Classification of Hotels Based on Service

Hotels may be classified into following group on the basis of level of servicesprovided by them

Up-market / Luxury / World Class Services Hotels : These are the hotels thatcater the needs of the affluent people demanding luxury and are not price

sensitive. These hotels have following features:

a. Generally located in heart of the city or at very exotic location

b. Provides personalized services of highest standard

c. These hotels have many specialty restaurants with full-assisted service

d. Top-end recreational facilities, such as golf course, tennis courts, designerswimming pools with trained life guards, and other sports facilities, shopping

arcades, beauty salons, health spas with saunas and jacuzzi, are a regular

feature


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Mid-market / Mid-range Services Hotels: These hotels offer modest services

without the frills and personalized attention of luxury hotels, and appeal to the

largest segment of travelers.

Budget / Economy Hotels : Budget hotels focus on meeting the most basic needs

of guests by providing clean, comfortable, and inexpensive rooms. Also known as

economy or limited services hotels, they appeal primarily to budget-minded

travelers and groups.

3. Classification of Hotels Based on ownership and affiliation

On the basis of the ownership & affiliation hotels are classified as under:

Proprietary Ownership : Proprietary ownership is the direct ownership of one or

more properties by a person or company.

Franchise: It is the authorization given by a company to another company or

individual to sell its unique products/services and use its trademark according to

the guidelines given by the former, for a specified time, and at a specified place.

Management Contract: Management contract, as the name suggests, is acontract between the owner of the property and a hotel operator (management

contractor) by which the owner employs the operator as an agent to assume the

full responsibility for operating and managing the hotel.

Time-share: it entails purchasing a tourist accommodation at a popular destination

for a particular time slot in a year. The buyers can then occupy the property for the

appointed time or rent the unit to other vacationers if they cannot avail the facility.


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They have to make a one-time payment for the time slot and a yearly fee to cover

the maintenance costs and related expenses, and take a share in the profit from

the income generated if they are not utilizing their time slot.

Condominium: Condominium hotels are similar to time-share hotels, except that

condominium hotels have a single owner instead of multiple owners sharing the

hotel.

4. Classification of Hotels by Purpose of Visit

International Hotels: international hotels are group of hotels which have presence

in all countries, Radisson, Hayat, holiday inn are some of the example for

international hotel ,these type of hotels are for foreign and domestic travellers Hostels: an establishment which provides inexpensive food and lodging for a specific

group of people, such as students, workers, or travellers. Youth hostel, YMCA YWCA, is

some of the examples Commercial/Business Hotels: caters the needs of a business traveler

Holiday Hotels: those hotels which cater the needs of holiday clients, mostly

these hotels are situated in downtown and exotic places like tourist spots Transient hotels: The duration of stay at transient hotels is very short, a day or

even less generally patronized by transient travelers.

Resort Hotels: Located at exotic location like sea beaches, hills etc

Motels: Located along the highways

Clubs: A club is an association of two or more people united by a common interest or

goal. Aservice club, for example, exists for voluntary or charitable activities; there are


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Clubs devoted to hobbies and sports, social activities clubs, political and religious clubs,

and so forth, mostly clubs provide limited accommodation for the members of the club

Convention Hotels: a Hotel that caters to the needs of a convention & delegation

-----------------------------------The End----------------------------------------------

hotel operations-1 (chapter-2).docx

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