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Managing Front
Office
SQA I HOT 333
The Lodging Industry
The Hospitality Industry
Classifying Hotels
Classifying Guest
Buying Influences on Travelers
The Green Hotel
Henry Ford
Counter Theory
The Hospitality Industry
Travel & tourism industry consists of
five parts
Lodging
operations
Transportation
services
Food &
beverage
operations
Retail stores Activities
The Lodging Industry
Travel & tourism
industry
Hospitality industry
Lodging
Food & Beverage
operations
Institutional Food &
Beverage Services
Hotels Classifications
Size
Target markets
Levels of service
Ownership & affiliation
Hotel Size Categories
Under 150 rooms
150 to 299 rooms
300 to 600 rooms
More than 600 rooms
Target Markets
Marketing challenges for lodging
property are:
• “Who stays at our property?”
• “Who else can we attract?”
Target markets are distinctly defined
groups of travelers that hotel seeks
to retain or attract as guests
Types of Hotels, Market Segment
Commercial hotels Airport hotels Suite hotels
Extended-stay
hotels
Residential hotels Resort hotels
Bed & breakfast
hotels
Vacation ownership
& condominium
hotels
Casino hotels Conference centers Convention hotels
Alternative lodging
properties
Commercial Hotels
Located in towns & cities
Often located near train
stations 1900-2000
Located in downtown or
business districts
Largest group of hotels Complimentary newspapers In-room coffee makers
Free local calls
Cable television, DVD
players/DVDs, video games
Personal computers, high-
speed Internet access
Ergonomic desks & chairs Fax machines
Car rental arrangements,
airport pick-up services
Guest Amenities
Twenty-four-hour food
service
Semi-formal dining rooms;
cocktail lounges
Conference rooms,
guestroom suites, room
service, banquet meal
service
Laundry/valet service Concierge service
In-room refreshment
centers
Retail stores
Pools, health clubs, tennis
courts, saunas
Airport Hotels
First airport hotels built in
1950s
Airport hotels are built in
major travel centers
Wide variety of sizes &
levels of service
Many feature conference
rooms
Offer convenience, cost
savings
Target markets: business
travelers, airline passengers
with travel layovers/canceled
flights & airline personnel
Suite Hotels
Fast-growing segment of lodging
industry
Feature guestrooms with living
room or parlor area & separate
bedroom
Some guestrooms include
kitchenette
Generally have fewer/more
limited public areas than other
hotels
Target markets: people relocating
to area, travelers who enjoy
homelike accommodations;
vacationing families, business
professionals
Extended-Stay Hotels
Similar to suite hotels
Designed for travelers
who stay five nights or
longer
Usually do not provide
food, beverage, or
uniformed/valet services
Housekeeping services
may not be provided on
daily basis
Homelike atmosphere
Room rates often
determined by length of
guest’s stay
Residential Hotels
Provide long-term or
permanent
accommodations in urban
or suburban areas
Located primarily in United
States
Declining in popularity;
replaced in part by suite &
condominium hotels
Guest quarters generally
include sitting room,
bedroom & kitchenette
In some states, guests who
contract to live in
residential hotel are
considered tenants
May provide some or all of
services provided to guests
in commercial hotels
Restaurant/lounge may be
located on premises
Resort Hotels
Often chosen as destination
or vacation spot
Usually located in exotic
location away from
crowded residential areas
Usually feature recreational
facilities/activities &
breathtaking scenery not
typical of other hotels
Usually provide extensive
food & beverage, valet &
room services
Typically feature leisurely,
relaxed atmosphere
Strive to provide enjoyable
guest experiences to
encourage repeat business
& word-of-mouth referrals
Often employ social
directors
Lifestyle Hotels
Appeal to specific travelers
who enjoy certain
architecture, art, culture,
special interests, & amenities
Most major lodging
companies have entered this
market segment
Reflect interests of their
guests
Usually have 100 to 250
guestrooms, with limited or
no meeting space
Food service varies from
world-class to mid-range
Building exterior, interior
décor & guestroom design
are all important to success of
these hotels
Bed-and-Breakfast Hotels
Sometimes called “B&Bs”
Range from converted
small houses to small
commercial buildings with
20–30 guestrooms
Owner usually lives on
premises & serves as
property manager
Breakfast ranges from
simple continental
breakfast to full-course
meal
Most only offer lodging &
limited food service
Room prices tend to be
lower than in full-service
hotel
Vacation Ownership Hotels
Sometimes referred to as timeshare or
vacation-interval hotels
People purchase ownership of
accommodations for specific period of
time (1-2 years)
If owners do not stay during their time
period, they can have hotel’s
management company rent their units
for them, receiving rental money after
paying fees to management company
for this service
Owners can trade their ownership time
with other owners in other locations
Each unit has multiple owners
Condominium Hotels
Similar to vacation ownership
hotels
Units in condominium hotels
have only one owner, instead of
multiple owners
Owners tell management
company when they want to
occupy their units; company is
free to rent unit for remainder of
year
Portion of rent from unit goes to
unit’s owner
Casino Hotels
Feature gambling facilities
Guestrooms & F&B operations
are often luxurious, but they are
secondary to gambling
operations
Cater to leisure & vacation
travelers
Attract guests by promoting
gaming & headliner
entertainment
Provide broad range of
entertainment & recreation
opportunities
May offer charter flights for
guests who plan to gamble
Gambling activities may operate
24 hours a day, 365 days a year
Some are very large, with
several thousand guestrooms
Conference Centers
Specifically designed to
handle group meetings
Provide all of services
& equipment necessary
for meeting’s success
Often located outside
metropolitan areas
May provide extensive
leisure activities
Convention Hotels
This segment has grown
significantly in recent years
Often have thousands of
guestrooms
Can have 50,000 square
feet or more of exhibit hall
space, plus ballrooms &
meeting rooms
Offer variety of dining
facilities
Primarily directed toward
business travelers with
common interest
Full line of business
services are generally
available for guests
Host state, regional,
national, & international
meetings
May book business up to
ten years in advance
Alternative Lodging Properties
Levels of Service
Tangibility of Service
• Tangible Products with intangible service
Quality Assurance
• Controlling service variability
Rating Services
• Stars & Diamonds
Levels of Service
World-class
service
• Luxurious, Full
Service,
Personalized
Upscale
• Amenities, Pools,
Gym
Mid-range
service
• Focused, Specific,
Selected Services
Economy &
Budget
• Basics, limited
service
Ownership and Affiliation
Independent hotels
• Management contract
• Franchise
• Referral group
Chain hotels
Classifying Guest
Business Pleasure/leisure Group International
Business Travelers
Historically, first & primary market for
hotels
More than 35 million people take
business trips each year
Business travelers average about five
trips per year
Business travelers account for significant
portion of lodging demand
Hotels design specific products &
services for business travelers--meeting
space, offices, secretarial/computer
services, in-room safes, 24-hour room
service, Internet access
Pleasure/Leisure Traveler
Specialized
resort
travel
Family
pleasure
travel
Travel by
elderly
Travel by
singles or
couples
Price-
sensitive
Group Travelers
Pleasure travel
Institutional meetings/conventions
Corporate/government meetings/ conventions
Trade associations
Management, sales meetings, new product introductions,
training seminars, professional/technical, stockholder
International Travelers
Different needs & expectations
Language barriers
Foreign-born employees can be helpful in serving these guests
Buying Influences on Travelers
Satisfactory experiences with hotel
Ads by hotel or chain
Recommendations by family members & friends
Hotel’s location
Preconceptions of hotel based on its name or affiliation
Travel management companies
Ease of making reservations
Blogging and Social Networking
Blogs publically accessible
chronicles or personal
diaries
“B-blog” is blog dedicated
to business or business
segment
Alternative blogs include
discussion forums & e-mail
exchanges
Social networking sites
facilitate interaction within
online or virtual community
Social networking sites
allow individuals or groups
to create personal profiles
to share with others
The Green Hotel
People increasingly interested in patronizing “green”
hotels
Government agencies, Association of Corporate Travel
Executives seeking “green” hotels
Initiatives include: reducing greenhouse gas emissions,
recycling, organic gardening, capturing waste heat from
power generators, using renewable energy sources &
educating guests about environmental issues
Green initiatives are in place worldwide
LEED certification, Energy Star program
Hotels engaged in energy, water, biodiversity
& waste management programs
Green meetings
?
Any Questions

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Chapter 01 Managing Front Office Operations HOT 333

  • 2. The Lodging Industry The Hospitality Industry Classifying Hotels Classifying Guest Buying Influences on Travelers The Green Hotel
  • 5. The Hospitality Industry Travel & tourism industry consists of five parts Lodging operations Transportation services Food & beverage operations Retail stores Activities
  • 6. The Lodging Industry Travel & tourism industry Hospitality industry Lodging Food & Beverage operations Institutional Food & Beverage Services
  • 7. Hotels Classifications Size Target markets Levels of service Ownership & affiliation
  • 8. Hotel Size Categories Under 150 rooms 150 to 299 rooms 300 to 600 rooms More than 600 rooms
  • 9. Target Markets Marketing challenges for lodging property are: • “Who stays at our property?” • “Who else can we attract?” Target markets are distinctly defined groups of travelers that hotel seeks to retain or attract as guests
  • 10. Types of Hotels, Market Segment Commercial hotels Airport hotels Suite hotels Extended-stay hotels Residential hotels Resort hotels Bed & breakfast hotels Vacation ownership & condominium hotels Casino hotels Conference centers Convention hotels Alternative lodging properties
  • 11. Commercial Hotels Located in towns & cities Often located near train stations 1900-2000 Located in downtown or business districts Largest group of hotels Complimentary newspapers In-room coffee makers Free local calls Cable television, DVD players/DVDs, video games Personal computers, high- speed Internet access Ergonomic desks & chairs Fax machines Car rental arrangements, airport pick-up services Guest Amenities Twenty-four-hour food service Semi-formal dining rooms; cocktail lounges Conference rooms, guestroom suites, room service, banquet meal service Laundry/valet service Concierge service In-room refreshment centers Retail stores Pools, health clubs, tennis courts, saunas
  • 12. Airport Hotels First airport hotels built in 1950s Airport hotels are built in major travel centers Wide variety of sizes & levels of service Many feature conference rooms Offer convenience, cost savings Target markets: business travelers, airline passengers with travel layovers/canceled flights & airline personnel
  • 13. Suite Hotels Fast-growing segment of lodging industry Feature guestrooms with living room or parlor area & separate bedroom Some guestrooms include kitchenette Generally have fewer/more limited public areas than other hotels Target markets: people relocating to area, travelers who enjoy homelike accommodations; vacationing families, business professionals
  • 14. Extended-Stay Hotels Similar to suite hotels Designed for travelers who stay five nights or longer Usually do not provide food, beverage, or uniformed/valet services Housekeeping services may not be provided on daily basis Homelike atmosphere Room rates often determined by length of guest’s stay
  • 15. Residential Hotels Provide long-term or permanent accommodations in urban or suburban areas Located primarily in United States Declining in popularity; replaced in part by suite & condominium hotels Guest quarters generally include sitting room, bedroom & kitchenette In some states, guests who contract to live in residential hotel are considered tenants May provide some or all of services provided to guests in commercial hotels Restaurant/lounge may be located on premises
  • 16. Resort Hotels Often chosen as destination or vacation spot Usually located in exotic location away from crowded residential areas Usually feature recreational facilities/activities & breathtaking scenery not typical of other hotels Usually provide extensive food & beverage, valet & room services Typically feature leisurely, relaxed atmosphere Strive to provide enjoyable guest experiences to encourage repeat business & word-of-mouth referrals Often employ social directors
  • 17. Lifestyle Hotels Appeal to specific travelers who enjoy certain architecture, art, culture, special interests, & amenities Most major lodging companies have entered this market segment Reflect interests of their guests Usually have 100 to 250 guestrooms, with limited or no meeting space Food service varies from world-class to mid-range Building exterior, interior décor & guestroom design are all important to success of these hotels
  • 18. Bed-and-Breakfast Hotels Sometimes called “B&Bs” Range from converted small houses to small commercial buildings with 20–30 guestrooms Owner usually lives on premises & serves as property manager Breakfast ranges from simple continental breakfast to full-course meal Most only offer lodging & limited food service Room prices tend to be lower than in full-service hotel
  • 19. Vacation Ownership Hotels Sometimes referred to as timeshare or vacation-interval hotels People purchase ownership of accommodations for specific period of time (1-2 years) If owners do not stay during their time period, they can have hotel’s management company rent their units for them, receiving rental money after paying fees to management company for this service Owners can trade their ownership time with other owners in other locations Each unit has multiple owners
  • 20. Condominium Hotels Similar to vacation ownership hotels Units in condominium hotels have only one owner, instead of multiple owners Owners tell management company when they want to occupy their units; company is free to rent unit for remainder of year Portion of rent from unit goes to unit’s owner
  • 21. Casino Hotels Feature gambling facilities Guestrooms & F&B operations are often luxurious, but they are secondary to gambling operations Cater to leisure & vacation travelers Attract guests by promoting gaming & headliner entertainment Provide broad range of entertainment & recreation opportunities May offer charter flights for guests who plan to gamble Gambling activities may operate 24 hours a day, 365 days a year Some are very large, with several thousand guestrooms
  • 22. Conference Centers Specifically designed to handle group meetings Provide all of services & equipment necessary for meeting’s success Often located outside metropolitan areas May provide extensive leisure activities
  • 23. Convention Hotels This segment has grown significantly in recent years Often have thousands of guestrooms Can have 50,000 square feet or more of exhibit hall space, plus ballrooms & meeting rooms Offer variety of dining facilities Primarily directed toward business travelers with common interest Full line of business services are generally available for guests Host state, regional, national, & international meetings May book business up to ten years in advance
  • 25. Levels of Service Tangibility of Service • Tangible Products with intangible service Quality Assurance • Controlling service variability Rating Services • Stars & Diamonds
  • 26. Levels of Service World-class service • Luxurious, Full Service, Personalized Upscale • Amenities, Pools, Gym Mid-range service • Focused, Specific, Selected Services Economy & Budget • Basics, limited service
  • 27. Ownership and Affiliation Independent hotels • Management contract • Franchise • Referral group Chain hotels
  • 29. Business Travelers Historically, first & primary market for hotels More than 35 million people take business trips each year Business travelers average about five trips per year Business travelers account for significant portion of lodging demand Hotels design specific products & services for business travelers--meeting space, offices, secretarial/computer services, in-room safes, 24-hour room service, Internet access
  • 31. Group Travelers Pleasure travel Institutional meetings/conventions Corporate/government meetings/ conventions Trade associations Management, sales meetings, new product introductions, training seminars, professional/technical, stockholder
  • 32. International Travelers Different needs & expectations Language barriers Foreign-born employees can be helpful in serving these guests
  • 33. Buying Influences on Travelers Satisfactory experiences with hotel Ads by hotel or chain Recommendations by family members & friends Hotel’s location Preconceptions of hotel based on its name or affiliation Travel management companies Ease of making reservations
  • 34. Blogging and Social Networking Blogs publically accessible chronicles or personal diaries “B-blog” is blog dedicated to business or business segment Alternative blogs include discussion forums & e-mail exchanges Social networking sites facilitate interaction within online or virtual community Social networking sites allow individuals or groups to create personal profiles to share with others
  • 35. The Green Hotel People increasingly interested in patronizing “green” hotels Government agencies, Association of Corporate Travel Executives seeking “green” hotels Initiatives include: reducing greenhouse gas emissions, recycling, organic gardening, capturing waste heat from power generators, using renewable energy sources & educating guests about environmental issues Green initiatives are in place worldwide LEED certification, Energy Star program Hotels engaged in energy, water, biodiversity & waste management programs Green meetings