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RESORT MANAGEMENT
Commercial Hotel vs Resort1. Visitor market
No matter how different resorts are from each other, they all seek to satisfy guests who have three fundamental needs:
- Desire for a change of pace, getting away
from the familiar- Desire to satisfy recreational
interests while being entertained and
stimulated- Desire to travel to interesting
and attractive places
2. Facilities- The average length of stay at a resort is
longer than at a hotel, the facilities are
different. - Rooms are larger, more closet space is
needed - Large amount of lands are required for
recreational activities - Guests are looking to participate in a variety of
activities as part of their total resort experience.
3. Location- Guests are attracted to many resorts because of
their remote location.- Many guests travel considerable distances to “get away from it all” or to enjoy an area of natural beauty- The properties must be self-contained- Support services such as laundry and maintenance
must be provided.- Transportation must be provided for employees or
shuttle services to and from the airport to be
provided for the guests.
4. Recreation- Most resorts specialize in one recreational type such as beach activities, skiing and tennis- Must have year-round attractions
5. Seasonality- Commercial hotels operate year-round compared to resorts
6. Personnel Attitude
-Resort guests have extremely high expectations of service- They expect to be pampered- With great pressure on employees to perform
at a high level
7. Managers- Resort managers must have additional
knowledge on two areas:The natural resources on which the
resort is basedGuest activity programming
- Manager of the ski-resort must know something about the mountain
- A resort specializing in golf must be managed by someone who knows the relationship between
golf course layout and profitability.
8. Corporate/Employer responsibility- Many resorts are large and located in remote
areas, they constitute a major piece of the
local economy.- Management takes on a certain responsibility
to the community that goes beyond the
responsibility of a hotel in a metropolitan
area.- The community may be totally dependent on
the resort for its economic future.
9. Employee housing- The remote location means that the resort
may have to provide housing for its employees
- This raises issues of employee privacy and
access to services
10. Labor skills- Employees at resorts tend to rotate into
different jobs both during the season and in the off-season
11. Sources of revenue
- Commercial hotels derived most of their
revenue from rooms, F&B, and various minor
operating departments- At a resort, retail sales are more important as
is revenue from recreational activities- Some properties derive a great deal of revenue
from land sales
12. Activity control
- Accounting statements are more complex in a
resort than in a commercial hotel- Every recreational activity and retail outlet is
a potential profit center, with separate profit
and loss statements
13. Balance sheet- Land and fixed asset investment is greater in
resort than in a conventional hotel which
changes the look of the balance sheet- Large amount of land means the resort has
few alternate commercial uses.- Payback period is longer for resorts because
of the large investment in land and other fixed
assets
14. Resorts and traditions- Traditions are more important for resorts
than for other type of hotels- Many resorts cater to repeat guest who are
attracted by annual festivals and theme
weekends- They come back to enjoy the experience year
after year
Industry Trends
1. Health spa and fitness facilities
2. Sport adventure programs
3. Gaming4. Ecotourism
Mountain-based resortsKey elements in the development
of mountain-based resorts
Physical balanceSize of the ski must meet the needs of
the market without being so large that the area is under-utilized
Size of the mountain dictates number of skiers that can be accommodated
Capacity of lifts bringing people up the mountain must balance with the trail capacity to bring them down the mountain
Capacity indicates the support facilities needed at base and surrounding areas.
Economic balanceBrings together the amount of
money invested and the earning capacity of the project.
The quality and quantity of the physical area must be sufficient enough to generate revenue and give investors a return on their money.
Revenue comes from a number of skiers per visit and the length of the season.
Main factors affecting the attractiveness of a site (negative side)
Mix of climate, snow condition, exposure, snow retention and forest cover
No extreme temperatureInfrequent wind problemsDry snow with a minimum of 250
inches
Attractiveness factors (positive)
Forest cover adds to the aesthetics and provides protection from the wind
Terrain should provide viewsSpace at the base is necessary for
aesthetic purposes especially parking facilities (lift system)
Potential length of season
Type of lifts
TowsCable liftsChair liftsGondolas
Gondola
Base area must have:1. ParkingPrivate, public transpo
or on foot 2. Access roadsConsider patterns of
arrival 3. Food serviceRestaurant and snack
bar
4. AccommodationResort hotels, second
homes, time share 5. MaintenanceGrooming vehicles 6. Emergency careSki patrol