Lodging: Meeting Guest Needs - PowerPoint Presentation

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Lodging: Meeting Guest Needs

Chapter 9

Copyright © 2010 by John Wiley & Sons, Inc. All Rights ReservedSlide2

LODGINGThe lodging industry has been in existence ever since the first traveler looked for a place to spend the night (thousands of years ago) Over the years, these facilities have evolved and have been known as hotels, motels, inns, taverns, ordinaries, etc.We use the term “lodging” to characterize the overall category of facilitiesSlide3

LODGING TODAY The lodging industry is a huge segment, by any measure Over 49,500 propertiesOver 4.6 million guest rooms

Generates over $40.6 billion in revenuesSupports more than 7.5 million jobsSlide4

THE EVOLUTION OF LODGINGStructures built specifically for overnight accommodation have been around for thousands of years dating back to Mesopotamia which was a center for commerceHotels in the US date back to the late 1700s and the early 1800s including hotels in Boston, New York, Chicago, and PhiladelphiaImportant features of early hotels included location and accessibility to transportationSlide5

THE EVOLUTION OF LODGING“Grand” hotels were later built in resort areas, city centers, and along transportation routes – Waldorf Astoria, Palmer House, Tremont HotelThe Tremont (in Boston) was the first to offer guests their own room!Other “Grand” hotels were built in the 1800s and early 1900s

, each offering a new amenity or featureSlide6

THE EVOLUTION OF LODGINGFirst developed in California in 1925, motels (Motor Hotels) are a relatively recent developmentHoliday Inn was the first well known chain of “motels” built in the US (1952)Holiday Inn was started by

Kemmons Wilson after a family vacationThere have since developed many different types of lodging facilities focusing on different customer needs (example: guest suites)Slide7

CRITERIA FOR CLASSIFYING HOTELS Price (or service)FunctionLocationMarket segmentDistinctiveness of style or offeringsSlide8

HOTELS CLASSIFIED BY PRICELimited-service hotelsSelect-serviceFull-service hotelsLuxury hotelsSlide9

CLASSIFYING HOTELS BY PRICELimited-Service HotelsUsually no public meeting space and limited food and beverageTypical ADR

is between $80.00 and $90.00 and the average number of rooms is 122Examples include Holiday Inn Express, Comfort Inn, Rodeway Inn, and Fairfield InnSlide10

CLASSIFYING HOTELS BY PRICESelect-Service HotelsRelatively new addition to lodging; akin to addition of fast-causal restaurants in the food service sectorWith 100 to 200 guest rooms, focus is on value and a cheaper alternative to full-service properties

Hot breakfast service and sometimes other food service is offered along with limited meeting spaceSlide11

CLASSIFYING HOTELS BY PRICEFull-Service HotelsHave a wide range of facilities and services including public meeting space and choice of food and beverageTypical ADR

is over $150.00Business and leisure travelers represent 57.3 percent of room salesAverage size is 272 roomsSlide12

CLASSIFYING HOTELS BY PRICELuxury HotelsHave a wide range of facilities and services offered in an upscale environment including concierge and multiple dining optionsRooms number between 150 and 500Higher ratio of employees to guest room

Typical ADR is over $225.00Industry leaders include Ritz-Carlton, Four Seasons, and FairmontSlide13

CLASSIFYING HOTELS BY FUNCTIONConvention hotelsTypically more than 500 rooms Often located near convention centersCommercial hotels

Smaller than convention hotels with 100 to 500 guest roomsTypically in downtown locationsSlide14

CLASSIFYING HOTELS BY LOCATIONDowntown hotelsSuburban hotelsTypically have 200 to 350 guest rooms and interior corridors

Highway/interstate hotels100 to 250 guest roomsAirport hotels250 to 550 guest roomsSlide15

HOTELS CLASSIFIED BY MARKET SEGMENTWhere different types of hotels have been built to respond to specific traveler needs

Executive conference centersResortsCasino hotelsHealth spasVacation ownershipSlide16

CLASSIFYING HOTELS BY OFFERINGSAll-suite hotelsExtended stay hotelsHistoric

conversionsBed and breakfast innsBoutique hotels

The beautifully restored boutique hotel, the Regent Wall Street Slide17

PRINCIPAL CUSTOMER TYPESLeisure or vacation travelersTransient business travelers ─ individual traveling aloneBusiness travelers attending conferencesInternational travelersSMERF

– social, military, educational, religious, and fraternalSlide18

WHAT’S CHANGING?Increasing competition (subject of Chapter 12)In-room technologyUnique hotelsIncreased service levelsBlurring of segmentsSlide19

WHAT’S CHANGING?Increased business travelIncreased occupancy in city hotelsRising room ratesCondo/time share conversions