CHAPTER 1

THE LODGING INDUSTRY

BY
DANISH MUNIR
THE TRAVEL AND TOURISM
INUDSTRY
The travel and tourism industry consists of five parts:
 lodging operations
 Transportation services
 Food and beverage operations
 Retail stores
 Activities
THE HOSPITALITY INDUSTRY
 The hospitality industry is part of the travel and
tourism industry
 The hospitality industry consist of lodging; food
and beverage operations; and institutional food and
beverage services
Classifying hotels

Hotels can be classified by:

 Size
 Target markets
 Level of service
 Ownership and affiliation
HOTEL SIZE CATEGORIES

 Under 150 rooms

 150 to 299 rooms
 300 to 600 rooms
 More than 600 rooms
TARGET MARKETS
 Two of the most important marketing challenges for a
lodging property are: ‘’who stays at our property?” and
“who else can we attract?”
 Lodging properties seek to identify target markets
 Target markets are distinctly defined groups of travelers
that the hotel seeks to retain or attract as guests
TYPES OF HOTELS, CLASSIFIED BY
MARKET SEGMENT
 Commercial hotels  Casino hotels
 Airport hotels  Conference centers
 Suite hotels  Convention hotels
 Extended-stay hotels  Alternative lodging properties
 Residential hotels (recreational, mobile home parks,
corporate lodging, cruise ships)
 Resort hotels
 Bed-and-breakfast hotels
 Vacation ownership and
condominium hotels
COMMERCIAL HOTELS
 Located in the towns and cities they primarily serve
 Often located near train stations in the nineteenth and
early twentieth centuries
 Located in downtown or business districts today
 Largest group of hotels
COMMERCIAL HOTEL GUEST
AMENITIES
Complimentary newspapers
 In-room coffee makers
 Free local calls
 Cable television, DVD players/DVDs, video games
 Personal computers, high-speed internet access
 Ergonomic desks and chairs
 Fax machines
 Car rental arrangements, airport pick-up services
 COMMERCIAL HOTEL GUEST
AMENITIES
Twenty-four hour food service
 Semi-formal dining rooms; cocktail lounges
 Conference rooms, guestroom suites, room service, banquet meal
service
 Laundry/valet service
 Concierge service
 In-room refreshment centers
 Retail stores
 Pools, health clubs, tennis courts, saunas
AIRPORT HOTELS
 First airport hotels built in 1950s as air travel become popular
 Airport hotels are built in major travel centers
 Wide variety of sizes and levels of service
 Target markets: business travelers, airline passengers with travel
layovers/ canceled flights, and airline personnel
 Many feature conference rooms
 Offer convenience, cost savings
 SUITE HOTELS
 Fast-growing segment of the lodging industry
 Feature guestrooms with a living room or parlor area and a separate
bedroom
 Some guestrooms include a kitchenette
 Generally have fewer/more limited public areas than other hotels
 Target markets: people relocating to area, travelers who enjoy
homelike accommodations; vacationing families, business
professionals
 EXTENDED-STAY HOTELS
 Similar to suite hotels
 Designated for travelers who stay five nights or longer
 Usually do not provide food, beverage, or uniformed/ valet services
 Housekeeping service may not be provided on a daily basis
 Homelike atmosphere
 Room rates often determined by the length of a guest’s stay
RESIDENTIAL HOTELS
 Provide long-term or permanent accommodations in urban or
suburban areas
 located primarily in the united states
 Declining in popularity; replaced in part by suite and condominium
hotels
 Guest quarters generally include a sitting room, bedroom, and
kitchenette
 In some states, guests who contract to live in a residential hotel are
considered tenants
 May provide some or all of the services provided to guests in
commercial hotels
 A restaurant/ lounge may be located on the premises
 RESORT HOTELS
 Often chosen as the destination or vacation spot
 Usually located in an exotic location away form crowded residential
areas
 Usually feature recreational facilities/activities and breath taking
scenery not typical of other hotels
 Usually provide extensive food and beverage, valet, and room
services
 Typically feature a leisurely, relaxed atmosphere
 Strive to provide enjoyable guest experience to encourage repeat
business and word-of-mouth referrals
 Often employ social directors
LIFESTYLE HOTELS
 Appeal to specific travelers who enjoy certain architecture, art,
culture, special interests, and amenities
 Most major lodging companies have entered this market segment
 Reflect the interests of their guests
 Usually have 100 to 250 guestrooms, with limited or no meeting
space
 Food service varies from world-class to mid-range
 Building exterior, interior décor, and guestroom design are all
important to the success of these hotels
BED-AND-BREAKFAST HOTELS
 Sometimes called ‘’B&Bs”
 Range from converted small houses to small commercial buildings
with 20-30 guestrooms
 Owners usually lives on the premises and serves as the property
manager
 Breakfast ranges from a simple continental breakfast to a full-
course meal
 Most only offer lodging and limited food service
 Room prices tend to be lower than in a full-service hotel
VACATION OWNERSHIP HOTELS
 Sometimes referred to as timeshare or vacation-interval hotels
 People purchase ownership of accommodations for a specific period
of time (usually one or two weeks a year)
 If owners do not stay during their time period, they can have the
hotel’s management company rent their units for them, receiving the
rental money after paying fees to the management company for this
service
 Owners can trade their ownership time with other owners in other
locations
 Each unit has multiple owners
CONDOMINIUM HOTELS
 Similar to vacation ownership hotels
 Units in condominium hotels have only one owner, instead of the
multiple owners typical in vacation ownership hotels
 Owners tell the management company when they want to occupy
their units; the company is free to rent the unit for the remainder of
the year
 A portion of the rent from the unit goes to the unit’s owner
CASINO HOTELS
 Feature gambling facilities
 Guestrooms and food and beverage operations are often luxurious, but
they are secondary to the gambling operations
 Cater to leisure and vacation travelers
 Attract guests by promoting gaming and headliner entertainment
 Provide a broad range of entertainment and recreation opportunities
 May offer charter flights for guests who plan to gamble
 Gambling activities may operate 24 hours a day, 365 days a year
 Come are very large, with several thousand guestrooms
CONFERENCE CENTERS
 Specifically designed to handle group meetings
 Provide all of the services and equipment necessary for a meeting’s
success
 Often located outside metropolitan areas
 May provide extensive leisure activities
 CONVENTION HOTELS
 This segment has grown significantly in recent years
 Often have thousands of guestrooms
 Can have 50,000 square feet or more of exhibit hall space, plus
ballrooms and meeting rooms
 Offer a variety of dining facilities
 Primarily directed towards business travelers with a common
interest
 A full line of business services are generally available for guests
 Host state, regional, national, and international meetings
 May book business up to ten years in advance
BASIC ISSUES PERTAINING TO
SERVICE
 Intangibility of service
 Quality assurance
 Rating services
 Economy/limited service
TYPES OF HOTEL, CLASSIFIED BY
LEVELS OF SERVICE
 World-class service
 Upscale
 Mid-range service
 Economy limited service
TYPES OF HOTELS, CLASSIFIED BY
OWNERSHIP AND AFFILIATION
 Independent hotels
 Chain hotels
- Management contract
- Franchise
- Referral group
CATEGORIES OF GUESTS

 Business
 Pleasure/leisure
 Group
 international
 BUSINESS TRAVELERS
 Historically, the first and primary market for hotels
 More than 35 million people take business trips each year
 Business travelers average about five trips per year
 Business travelers account for a significant portion of lodging
demand
 Hotels design specific products and services for business travelers–
meeting space, office, secretarial/computer services, in-room safes,
24-hour room service, internet access
PLEASURE/LEISURE TRAVELERS
 Specialized resort travel
 Family pleasure travel
 Travel by the elderly
 Travel by singles or couples
 Price-sensitive
GROUP TRAVELERS
 Pleasure travel
 Institutional meetings/conventions
 Corporate/government meetings/ conventions
 Trade associations
 Management meetings, sales meetings, new product
introductions, training seminars, professional/ technical
meetings, stockholder meetings
INTERNATIONAL TRAVELERS

 Different needs and expectations

 Language barriers
 Foreign-born employees can be helpful in serving these
guests
BUYING INFLUENCES ON TRAVELERS
 Satisfactory experiences with a hotel
 Ads nu a hotel chain
 Recommendations by family members and friends
 Hotel’s location
 Preconceptions of a hotel based on its name or affiliation
 Travel management companies
BUYING INFLUENCES ON TRAVELERS
 Ease of making reservations
 Hotel’s quality of service, cleanliness, and appearance
 Loyalty to a particular property or brand
 Frequent traveler programs
 Website design (for travelers booking online)
BLOGGING AND SOCIAL
NETWORKING
Blogs: publically accessible chronicles or personal diaries
 “B-Blogs” is a Blog dedicated to a business or business segment
 Alternative blogs include discussion forums and e-mail exchanges
 Social networking sites facilities interaction within an online or
virtual community
 Social networking sites allow individuals or group to create personal
profiles to share with others
THE GREEN HOTEL
 People increasingly interested in patronizing “green” hotels
 Government agencies the Association of Corporate Travel Executives
seeking “Green” hotels
 Green hotel initiatives include: reducing greenhouse gas emissions,
recycling, organic gardening, capturing waste heat form power generators,
environment issues
 Green initiatives are in place worldwide
 LEED certification, Energy star program
 Hotels engaged in energy management, water management, biodiversity
management, and waste management programs
 Green meetings