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THE LODGING INDUSTRY
Standard 2: Objective 1Travel and Tourism Marketing
Evolution of the Hotel~
INN – Ancestor to the hotel Small, people shared rooms AND beds. Cleanliness
was a problem – bed bugs/fleas! Indoor plumbing – 1800’s
Hotel Industry Milestones
U.S.A. and Canada – First Hotels USA First grand hotel –
Boston’s TREMONT HOUSE. $2/day which included 4 meals!
Started the “Chain Hotel” concept and private baths in each room –
Ellsworth Milton Statler
Greatest Hotelier of all time – Ce’sar Ritz
Hotel Industry Milestones cont.
First No-frills motel – Motel 6 – 1963 ($6/night)
First Atrium Motel - Hyatt Regency in Atlanta
Hotels traditionally were established near
TRANSPORTATION CENTERS
Conrad HILTON…
Sometimes called, “The Biggest Hotel Man in the World” He catered to the
American Business Traveler
Also opened up the Caribbean for leisure travel
Hotel Classifications
LocationGuest TypePrice Style and
Function
HOTEL Location
Resorts – great locations, lots of amenities/activities
Airport – business or leisure AND airline employees
Freeway access – usually for one night guests traveling to another destination
Downtown (bigger cities) – near shopping or business
Conference Centers - convention/meetings
Business Guests –Business, conventions, meetings
Leisure Guests –Vacation for pleasure
HOTEL Guests
HOTEL Price
BUDGET (or Economy): Inexpensive, limited services (Comfort Inn, Motel 6)
MID PRICE: More services than budget (Holiday Inn Express, Courtyard)
UPSCALE (luxury): Great locations, many services and amenities (Grand America, Hyatt Regency)
HOTEL Style and Function
All Suite: Larger rooms, separate living areas
Extended Stay: More space for guests needing to stay for longer periods of time (kitchenettes)
Bed-n-Breakfasts: Fewer rooms, lots of personal service AND cooked breakfast.
HOTEL Style and Function
Spas: Health related services (Biggest Loser at Fitness Ridge)
Vacation Properties (Time Shares): Guests can “buy” a lodging location for period of time
Retreat Centers: Business travelers who want a secluded location.
Yield Management
Setting different prices for goods and services in an effort to maximize revenue when limited capacity is a factor.
Yield Management Pricing
Average Daily Balance (ADR) Total sales / total number of rooms = ADR
Occupancy percentage (OCC%) Number of rooms sold / # of rooms available = OCC%
Revenue per available room (RevPAR) Revenue / total rooms available = RevPAR
Room Rate Variables
Room size and amenitiesLocation of the room (ocean view or parking
lot)Number of people in the roomGroup, corporate or convention rateTaxes, (each city is different), resort &
service fee’sSeasonCost of operation and quality of servicesCurrency fluctuations
Hotel prices are quoted WITHOUT taxes, service charges or resort fee’s.
Hotel Room Rates
Rack Rates – price of a room “originally”
Frequent-guest incentives – rewards for members with each stay. Can earn points for free nights.
Weekend Rates – in cities, where business traveler’s usually stay.