Introduction to Hotel Introduction to Hotel ManagementManagement
3 credits
Time:pm0200-0500, Friday
Place:C325
Ch1 Lodging Industry Classification
SECTION1 Classified by Types of Service
SECTION2 Classified by Target Market
SECTION3 Classified by Ownership
SECTION1SECTION1 Classified by Classified by Types of ServiceTypes of Service
Full-Service Lodging
Intermediate-Service Lodging
Limited-Service Lodging
Full-Service LodgingFull-Service LodgingLuxury and Upscale
Services Provides by the Five Star Hotel
Wide Public Area, Multiple Choices of Restaurant
Executive Floor
1.Provide higher standard facilities and extra services
2.Provide Bar and free drink
Full-Service LodgingFull-Service LodgingTwo Important Characters
1.Provide luxury facilities
2.Provide customized services
Intermediate-Service LodgingIntermediate-Service Lodging
Scale: 150~300Hotel Rooms
Target Market: Domestic Mass Tourism
Provide “good” services, but not “luxury”
services
Limited-Service LodgingLimited-Service Lodging
Clean, Cheap, Comfortable
Guest Rooms: Satisfied the basic need of customers
Not Provided: Baggage Service, Banquet Hall, Business Center, Leisure Facilities
Limited beverage services
Example: JingJiang Star Hotel Example: JingJiang Star Hotel Chain in ChinaChain in China
Section2 Classified by Target Market
Commercial Hotel
Convention Hotel
Casino Hotel
Airport Hotel
Motel
Residential Hotel
Resort
Time-share
Others
Commercial Hotel
In the century of railroad, its location is usually near the railroad station.
Car & Highway, MRT
Right Now, most located at city center or business district.
Major customers are business travellers.
Package tourists, individual tourists and convention tourists are also target market.
For Example: Tainan’s Cambridge Hotel
Convention Hotel
More than 40% international conferences are held in hotel (ICCA, 2012)
Successful tourist destination is the necessary condition for the success of the MICE industry and convention hotel.(Amy Chan, 2009)
Convention city in Asia: Singapore, Kuala Lumpur, Hong Kong, Bangkok
Meeting + Tourism = Incentive tourism
Convention HotelEnough Hotel Rooms (Scale)
Exhibition Hall and Banquet Hall are necessary.
Qualified Conference Rooms and Facilities(video conference, wireless internet, translation equipment, and fax)
Entertainment Facilities(golf course, swimming pool, Spa)
Services of VIP and the accompany person
Need of Disables and Minority People
Experienced Hospitality and Critical Service Behaviors
Casino Hotels
Casino is the main body, and hotel is the
sideshow.
Keep the customers stay at the casino.
Hotel is luxury, but is not expensive.
Taiwan and Singapore both emphasize complex
development as the policy. (hotel, casino, golf
course, shopping mall, stadium )
Casino Hotels
Provide luxury facilities and man-made theme.
Emphasize customer satisfaction, but not
occupation rate and Revpar.
Provide large scale of hotel rooms (more than
4000 is not unusual).
Held international entertainment events to
attract customers.
Airport Hotel
Lacation: near by the airport
Target Market: Transfer traveller, business traveller, crews of airlines company
Facilities: emphasize leisure facilities
Operation: 24 hours services (at least beverage service)
Examples: Novotel Taoyuan (China airlines ), Evergreen Taoyuan (Evergreen airlines)
Motels
Born for the traveller in the car and highway century
Mainstream: cheap price and limited services
However, Taiwan has some luxury motels in urban area.(swimming pool, luxury bathtub)
Residential Hotel
“Home” for business or vacation travellers
Guest Room Design: Kitchen, Living Room and Bed Room
Easy to be transformed into apartment or office
Gradually replaced by rented apartment and full-serviced hotel
Resort
Location: natural or man-made landscape
Facility: self-sustained, different kinds of leisure facilities for all age groups
Operation
1.Emphasize cross-training employee
2.Emphasize relax miliu
3.Overcome low season and high season problem
4.Emphasize local public relation
TimeshareOwn one or several weeks of vacation right every year
Consumption and Investment
Exchange company: RCI, II
Flexible Development of point system:
1.Marriott Vacation Club International
2.Hilton Grand Vacations
Guest Room Design: Connecting Room
High Service Standard: most customers are owners
SECTION3 Classified by OwnershipSECTION3 Classified by Ownership
Independent Hotel
Management Contract
Franchise Agreements
Free Alliances
Independent Hotel
Unique Structure of Ownership
Strength:
1.Concentrated power means efficient decision-making.
2.Easy to merge corporate culture and organizational strategy.
Weakness:
1.Lacking of economy of scale to reduce cost.
2.Lacking of brand to establish customer’s loyality.
Independent Hotel
Tempus Hotel (Taichung)
Han-Hsien International Hotel (Kaohsiung)
Santos Hotel (Taipei)
Management Contract
Owner + Hotel Management Company(HMC)
HMC provides development and management knowledge.
Owner monitors the hotel operation by controlling human resource and accounting departments.
Management Contract
Owner + Hotel Management Company(HMC)
Taiwan Sugar Company + Evergreen (HMC)
Ta-yi Group + Landis (HMC)
Management Contract
Strength:
1.Provide a way for hotel chains to expand by low -cost.
2.Avoid HMC to take financial risk .
Weakness:
1.HMC receives limited financial return from increased hotel value.
2.Change of owners usually cause the failure of management contract.
Franchise Agreements
Develop operational standard, job breakdown and SOP
Strong Brand and Reputation
Sharing reservation system, purchasing power, marketing activities and management knowledge
Franchise Agreements
Brand v.s Hotel Chains
International Brand:
Sheraton, Hilton, Marriott, Hyatt, Westin,
Intercontinental, Four Seasons, Novotel
Domestic Brand:
Landis, Evergreen, Howard, Formosa
International, Royal, Chinatrust
Franchise AgreementsStrength:
1. Have lower cost to get a reservation system.
2. Spend less money for marketing.
3. Have the benefit of brand loyalty.
4. Share the R&D product, innovation knowledge and mature training system.
Weakness:
1. Owner has to sacrifice some sovereignty to follow the rules and performance standards of the brand.
2. Owner has to pay financial cost to join and stay in the hotel chains.
Free Alliances
Unify some independent hotels to build a new union.
Strategic Alliances
Jointed Marketing
Introduce guests to partner hotels
Opportunity to increase purchasing power and lower purchasing cost
Hotel + B&B + Hot Spring Resort
(for example: Taiwan’s Backpacker Inc. )