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Chapter Six: Accommodations

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

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

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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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