CLASSIFICATION OF HOTELS. CLASSIFICATION OF HOTELS. HOTELS CAN BE CLASSIFIED IN THE FOLLOWING WAYS: ON THE BASIS OF SIZE ON THE BASIS STAR SYSTEM ON THE BASIS OF LOCATION ON THE BASIS OWNERSHIP. CLASSIFICATION OF HOTELS ON THE BASIS OF SIZE.
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CLASSIFICATION OF HOTELS HOTELS CAN BE CLASSIFIED IN THE FOLLOWING WAYS: • ON THE BASIS OF SIZE • ON THE BASIS STAR SYSTEM • ON THE BASIS OF LOCATION • ON THE BASIS OWNERSHIP
CLASSIFICATION OF HOTELS ON THE BASIS OF SIZE Size refers to the number of rooms. various categories on the basis of size are: • Small hotel- a hotel with 25 rooms or less is called a small hotel. • Average hotel- a hotel with 26 to 99 rooms is called an average hotel. • Above average hotel- a hotel with 100 to 299 rooms is called above average hotel. • Large hotel- a hotel with more than 300 rooms is classified as large hotel.
CLASSIFICATION OF HOTELS ON THE BASIS OF STAR SYSTEM The star category to the hotels are given by the committee called “hotels and restaurants approval and classification committee (hracc)” • One star • Two star • Three star • Four star • Five star • Five star deluxe • Five star super deluxe
CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION • CITY/DOWNTOWN/COMMERCIAL HOTEL: These hotels are located in the heart of the city. • These hotels are more expensive than the suburban hotels. • These hotels are patronized by business men and high income tourists. • These hotels are centrally located and at a convenient distance from markets, railway station, airport, etc.
CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION (Contd…) • SUBURBAN HOTELS: These hotels are located in the suburb of cities, moderately priced and are of mostly medium, large or small size. • Normally these hotels are patronized by low budget tourists. • The tourists who do not want to stay in the heart of city as they want to be away from hustle and bustle of city, prefer these hotels. • Usually writers, poets, low budget tourists etc prefer to stay at suburban hotels.
CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION (Contd…) • AIRPORT HOTELS: These are Hotels located near the Airports, especially international airports. • Airport Hotels are popular because of their proximity to major travel centers. • Airport Hotels vary widely in size and level of services. • Typical target market includes business clientele, airline passengers with overnight travel layovers or canceled flights and airline personnel. • Hotel owned courtesy vans often transport guests between the hotel and the airport.
CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION (Contd…) • MOTELS: Motels are also called Motor Hotels or transit hotel and are located alongside the highways. • Motels are normally economical and they provide comfortable bedrooms that motorists prefer to stay on their way for a night rest. • Motels have facilities of proper motor garage to service a car and a filling station to refill vehicles, parking area for motor vehicles etc. • They also have road maps, dormitory for drivers. These days Motels also provide various indoor and outdoor facilities like Video parlor, Billiards, Table tennis, Cyber café, Library etc.
CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION (Contd…) • RESORT HOTELS: A resort located in the tourist interest places like hills, forests, beaches, on an island, or in some other exotic location away from crowded residential areas. • The recreational facilities and breathtaking scenery typical of most resorts. • Most resort hotels provide extensive food and beverage, valet and room services, sight seeing to vacationers. • Many resorts also provide special activities, indoor and outdoor games for guests such as dancing, golf, tennis, horse riding, nature hikes, skiing and swimming, health club, steam sauna bath, spas etc. • A more leisurely, relaxed atmosphere distinguishes most resort hotels from other types of hotels.
CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION (Contd…) • ROTELS: The hotels which rotate on wheels are called rotels. It is also called motel on wheels. It is a luxurious train, fully air-conditioned, well-furnished with attached restaurant and bar. The fare is inclusive of train ticket, food, alcoholic beverages and sight seeing. • In Japan Rotels are parked in the parking slot in the late evening and during day the rotel is towed away.
CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION (Contd…) • FLOATELS: The hotels which floats on water are called floatels. These are luxurious suites consisting of drawing room, dining room, bed room, sitting room, balcony, kitchen, bathroom etc. • These days luxury ships are becoming popular for travelling. The guests are offered cabins to stay. These float on sea water and these have all facilities of five star hotels.
CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION (Contd…) • BOATELS: These are luxury boats/yachts which can ferry people from one place to another. The best example of yachts are in Mediterranean or Caribbean, they can ferry guest through canal-based narrow boat or Broad-based cabin cruiser.
CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP • TIME SHARE: This is a new concept in India but is picking up very fast. • This is also known as ‘Vacation Ownership’ or ‘Holiday Ownership’ concept. • These properties are in resort areas like hills, beaches, forests etc. • Time share involves individuals who purchases the ownership of accommodation for a specific week or weeks. • The price of the property will depend on the week, one tends to buy. • The guest can choose a peak season, semi peak season or a lean season.
CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..) • The owner pays a fixed price for certain number of years say 20 to 30 years and has a right to stay at the hotel during rented week. • The guest also required to pay an annual contribution towards the maintenance of apartment and public areas, electricity, gas, water, safety, insurance etc. • The owner can also rent out the unit through management. • The owner can also exchange their resort with any other resort either directly owned by the company or through contract signed with any other company/management by paying a nominal fee.
CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..) • CONDOMINIUM HOTELS: These are quite similar to Time share. These units are developed on joint ownership basis. • Each owner purchases and has full right of an unit he has purchased and shares the cost common to the complex, such as taxes, insurance, maintenance and upkeep of public areas including swimming pool, health club, parking, security, air conditioning, heating, cable, broad band etc. • Each owner can occupy or sell his unit independently but is required to follow the rules and regulations laid by the management.
CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..) • In some cases the management can help the owner in renting out the property. • They take the full responsibility of the owner’s units safety and also pay to the owner a major portion of the rent earned from renting out. • The management earns a major portion by renting out conference hall and from catering. • Usually the management requests the owner to rent out in case of major conferences.
CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..) • CHAIN HOTELS: A chain is usually classified as operating under a management contract or as a franchise or referral group. • Chains usually make certain rules regarding standards, rules, policies, procedures of affiliation etc. • In general, the more centralized the organization the stronger the control over the individual property. • Some chains own affiliated properties, but many do not. • Some chains have strong control over the architecture, management and standards of affiliated properties. • Other chains only concentrate on advertising, marketing, purchasing.
CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..) • INDEPENDENT HOTELS: Independent hotels do not have ownership or management affiliation with other properties. • They have no relationship to other hotels regarding policies, procedures, financial obligations, management, accounting etc. • These may be registered as sole proprietor-ship or a private limited company. • The owner may decide the standard, type of clientele, the tariff etc. • He may tie up with travel agencies to sell his property against commission.
CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..) • MANAGEMENT CONTRACT: Management companies are organizations that operate properties owned by others. • Those other hotels may be owned by individual persons, partnerships or private limited companies. • The individual hotel, under construction, may contract with a professional hotel management company to operate the proposed property. • These contracts are normally on a long-term basis. • Some management companies, when feel that they must have a hotel in a particular location then they approach prospective individuals to build a hotel and operate under their managements contract.
CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..) • The management contract can even be signed before the construction starts. • After paying the management fees, operating expenses, the owners keep the balance cash for paying their debts, taxes etc. and the balance is their net profit. • The Management companies only take over the management of the company, whereas the franchising companies provide the financial assistance, advertising, central reservation facilities, marketing etc.
CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..) • FRANCHISE: Franchise is a system in which the franchise owner grants another the right or privilege to merchandise a product or service for a specified return. • Franchise Agreement is an agreement under which the owner operates as a member of the chain, utilizing the brand image, name, goodwill and obtaining for a certain fee some services of marketing and operating nature support from resources of a large organization, advertising, sales promotion, technical and financial help etc. • The best known franchising companies are Holiday Inn, Choice International, Quality Hotels & Inns etc.
CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..) • Referral Groups: referral Groups consists of independent hotels which have grouped together for some common purpose. • Though the properties in the referral group may be different from each other but there is sufficient consistency in the quality of service to satisfy guest expectations. • The member hotels recommend guests to other member hotels. • Best Western International, one of the largest hotel chains is the best example of referral groups. • The referral groups also extend benefit of more extensive reservation and expanded advertising through pooled resources.
OTHER CLASSIFICATION OF HOTELS ON THE BASIS OF LENGTH OF STAY: TRANSIT HOTELS: Motels and airport hotels are the best example of these hotels. • These hotels are patronized by those guests who are in transit and will be travelling further to their destinations. • Some times these hotels also charge room rent for half a day as guests would like to stay just for a few hours. • At times these hotels have much more than 100% occupancy.
OTHER CLASSIFICATION OF HOTELS • TRANSIENT HOTELS: Rest houses, Government guest houses etc are the best examples of transient hotels. • In these hotels one is not allowed to stay for a very long time as these hotels are very economical and are patronized by the employees either on transfer or on tour or on vacations.
OTHER CLASSIFICATION OF HOTELS • RESIDENTIAL HOTELS: These hotels offer rooms/apartments on monthly basis and even if a guest stays for a part of the month, is normally charged for the full month. • The best examples for these hotels are hostels, paying guest houses for students, trainees, working people etc. • Some big companies also hire them for months/years for their company executives for pleasure, business, training etc. • These can be located in any part of the country, it may be a hill station, beach etc. for pleasure or a big city or an industrial town for business.
OTHER CLASSIFICATION OF HOTELS • SEMI RESIDENTIAL HOTELS: Most of the hotels in present days are semi residential hotels and are located through out the country. • The guests, staying in these hotels, are required to pay room rent on daily basis. • guest may hire the accommodation for months or years together but the rent charged will be on daily basis. • The hotel may offer a special allowance on room rent to these guests.
OTHER CLASSIFICATION OF HOTELS ON THE BASIS OF CLIENTELE: HOSTELS: The students hostels are very common both in schools and colleges. • These can only be patronized by the students of a particular school or college. • The hostels can also be attached to offices, banks etc. • These are also called residential hotels as they charge on monthly, half yearly or yearly basis. • These hostels provide nutritive food, keeping in view the needs of the residents.
OTHER CLASSIFICATION OF HOTELS • Heritage Hotels: The Government of India to boost up tourism and to preserve the India heritage, has started a scheme, where old heritage buildings, palaces constructed before 1935 were converted into hotels. • Heritage Grand Hotels are those which are more than 100 years old.
OTHER CLASSIFICATION OF HOTELS • BOUTIQUE HOTELS: These are very small and very expensive hotels and mainly cater for elite class. • Though the hotel is small but still it has more number of restaurants. Each one is decorated keeping in view a theme and the food served.
OTHER CLASSIFICATION OF HOTELS • ALL SUITE HOTELS: The All-suite concept a new addition to the hotel industry. • These suites provide living room, bedroom, kitchenette etc.