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Chapter Six: Accommodations

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Chapter Six: Accommodations. 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

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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
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 back-of-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
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
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
Same Time, Same Place?
  • Time-Share Condominiums:
    • Usually 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
    • Flexibility to swap occupancy rights with other owners
    • Point system is new way to sell time-shares and make swapping easier
    • Destinations and week of year vary in popularity
    • Condos in rental pools

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

your attention please
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
Enjoying the Great Outdoors
  • Camping and RV Parks
    • Camping is no longer “roughing it”; often find amenities similar to other forms of accommodations
    • 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 River, NJ, 07458. All Rights Reserved

brief history of hotel development
Brief History of Hotel Development
  • Boston’s Tremont House, 1829, 1st Hotel
  • Brown Palace in Denver, 1892, 1st atrium
  • Statler Hotel,1908 added services and amenities
  • Great Depression resulted in 85% of hotels going bankrupt
  • End of WWII gave rise to development of hotels
  • 1990’s had a period of growth and high profits

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

classification and rating systems
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
  • 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 Rights Reserved

seven categories of lodging properties
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
Organizing for successful operations
  • Going it alone
    • Small independent properties, managed by owners
    • Not bound by corporate policies so have complete decision-making 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
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
    • Owners retain all financial obligations
  • Chain Operations
    • Chain operations have common ownership or management
    • Chains provide similar benefits as franchises

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

organizing for successful operations continued13
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
    • 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 Rights Reserved

it all begins with sales
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 Guest’s 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
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 Rights Reserved

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