Managing Front Office Operations Tenth Edition Chapter 1 The Lodging Industry Managing Front Office Operations Tenth Edition

Learning Objectives Explain how the travel and tourism industry can be categorized, and classify hotels in terms of their size and target markets. Classify hotels in terms of their levels of service, and ownership and affiliation. Describe characteristics of business, pleasure/leisure, group, and international travelers. Identify factors that influence travelers’ buying decisions. Describe how hotels can become more ecologically responsible and the incentives they have to do so.

The Travel and Tourism Industry The travel and tourism industry consists of five parts: Lodging operations Transportation services Food and beverage operations Retail stores Activities

The Hospitality Industry The hospitality industry is part of the travel and tourism industry. The hospitality industry consists of lodging; food and beverage operations; and institutional food and beverage services.

Classifying Hotels Hotels can be classified by: Size Target markets Levels of service Ownership and affiliation

Hotel Size Categories Under 150 rooms 150 to 299 rooms More than 600 rooms

Target Markets Two of the most important marketing challenges for a lodging property are: “Who stays at our property?” and “Who else can we attract?” Lodging properties seek to identify target markets. Target markets are distinctly defined groups of travelers that the hotel seeks to retain or attract as guests.

Types of Hotels, Classified by Market Segment Commercial hotels Airport hotels Suite hotels Extended-stay hotels Residential hotels Resort hotels Bed-and-breakfast hotels Vacation ownership and condominium hotels Casino hotels Conference centers Convention hotels Alternative lodging properties (recreational vehicle parks, campgrounds, mobile home parks, corporate lodging, cruise ships)

Commercial Hotels Located in the towns and cities they primarily serve Often located near train stations in the nineteenth and early twentieth centuries Located in downtown or business districts today Largest group of hotels

Commercial Hotel Guest Amenities I Complimentary newspapers In-room coffee makers Free local calls Cable television, DVD players/DVDs, video games Personal computers, high-speed Internet access Ergonomic desks and chairs Fax machines Car rental arrangements, airport pick-up services

Commercial Hotel Guest Amenities II 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 as air travel became popular Airport hotels are built in major travel centers Wide variety of sizes and levels of service Target markets: business travelers, airline passengers with travel layovers/canceled flights, and airline personnel Many feature conference rooms Offer convenience, cost savings

Suite Hotels Fast-growing segment of the lodging industry Feature guestrooms with a living room or parlor area and a separate bedroom Some guestrooms include a 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 a daily basis Homelike atmosphere Room rates often determined by the length of a guest’s stay

Residential Hotels Provide long-term or permanent accommodations in urban or suburban areas Located primarily in the United States Declining in popularity; replaced in part by suite and condominium hotels Guest quarters generally include a sitting room, bedroom, and kitchenette In some states, guests who contract to live in a residential hotel are considered tenants May provide some or all of the services provided to guests in commercial hotels A restaurant/lounge may be located on the premises

Resort Hotels Often chosen as the destination or vacation spot Usually located in an exotic location away from crowded residential areas Usually feature recreational facilities/activities and breathtaking scenery not typical of other hotels Usually provide extensive food and beverage, valet, and room services Typically feature a leisurely, relaxed atmosphere Strive to provide enjoyable guest experiences to encourage repeat business and word-of-mouth referrals Often employ social directors

Lifestyle Hotels Appeal to specific travelers who enjoy certain architecture, art, culture, special interests, and amenities Most major lodging companies have entered this market segment Reflect the 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, and guestroom design are all important to the 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 the premises and serves as the property manager Breakfast ranges from a simple continental breakfast to a full-course meal Most only offer lodging and limited food service Room prices tend to be lower than in a full- service hotel

Vacation Ownership Hotels Sometimes referred to as timeshare or vacation- interval hotels People purchase ownership of accommodations for a specific period of time (usually one or two weeks a year) If owners do not stay during their time period, they can have the hotel’s management company rent their units for them, receiving the rental money after paying fees to the 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 the multiple owners typical in vacation ownership hotels Owners tell the management company when they want to occupy their units; the company is free to rent the unit for the remainder of the year A portion of the rent from the unit goes to the unit’s owner

Casino Hotels Feature gambling facilities Guestrooms and food and beverage operations are often luxurious, but they are secondary to the gambling operations Cater to leisure and vacation travelers Attract guests by promoting gaming and headliner entertainment Provide a broad range of entertainment and 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 the services and equipment necessary for a 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 and meeting rooms Offer a variety of dining facilities Primarily directed toward business travelers with a common interest A full line of business services are generally available for guests Host state, regional, national, and international meetings May book business up to ten years in advance

Basic Issues Pertaining to Service Intangibility of service Quality assurance Rating services Economy/limited service

Types of Hotels, Classified by Levels of Service World-class service Upscale Mid-range service Economy/limited service

Types of Hotels, Classified by Ownership and Affiliation Independent hotels Chain hotels Management contract Franchise Referral group

Categories of Guests Business Pleasure/leisure Group International

Business Travelers Historically, the first and 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 a significant portion of lodging demand Hotels design specific products and services for business travelers—meeting space, offices, secretarial/computer services, in-room safes, 24-hour room service, Internet access

Pleasure/Leisure Travelers Specialized resort travel Family pleasure travel Travel by the elderly Travel by singles or couples Price-sensitive

Group Travelers Pleasure travel Institutional meetings/conventions Corporate/government meetings/ conventions Trade associations Management meetings, sales meetings, new product introductions, training seminars, professional/technical meetings, stockholder meetings

International Travelers Different needs and expectations Language barriers Foreign-born employees can be helpful in serving these guests

Buying Influences on Travelers Satisfactory experiences with a hotel Ads by a hotel or chain Recommendations by family members and friends Hotel’s location Preconceptions of a hotel based on its name or affiliation Travel management companies Ease of making reservations Hotel’s quality of service, cleanliness, and appearance Loyalty to a particular property or brand Frequent traveler programs Website design (for travelers booking online)

Blogging and Social Networking Blogs: publicly accessible chronicles or personal diaries “B-blog” is a blog dedicated to a business or business segment Alternative blogs include discussion forums and e-mail exchanges Social networking sites facilitate interaction within an online or virtual community Social networking sites allow individuals or groups to create personal profiles to share with others

Types of Social Media Platforms Major platforms Review platforms Messaging platforms Check-in platforms Auxiliary platforms

The Green Hotel People increasingly interested in patronizing “green” hotels Government agencies, the Association of Corporate Travel Executives seeking “green” hotels Green hotel initiatives include: reducing greenhouse gas emissions, recycling, organic gardening, capturing waste heat from power generators, using renewable energy sources, and educating guests about environmental issues Green initiatives are in place worldwide LEED certification, Energy Star program Hotels engaged in energy management, water management, biodiversity management, and waste management programs Green meetings