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
