Welcome to Hospitality …An Introduction Chapter 3—Dynamics of the Lodging Industry

Chapter 3—Objectives Identify influences affecting the hotel industry over the years. Explain how lodging properties can be classified. Discuss the advantages and disadvantages of operating independent and chain properties.

Chapter 3—Objectives (continued) Compare the company-owned, franchise-licensed, and management contract forms of chain ownership. Identify the eight Ps of hospitality marketing.

Influences Affecting the Hotel Industry Political Psychological Socioeconomic Technological Economic

Lodging Classifications Grouped by Size, amenities offered, price, type of guest, type of hotel Luxury Budget Mid-priced

Independent versus Chain Companies: Advantages Advantages of independent Total control Bond with community Operating freedom Saving money on overhead/franchise fees Advantages of chain companies Strong national brand identity Centralized reservation system High levels of consistency

Independent versus Chain Companies: Disadvantages Disadvantages of independent Financial challenges Third-party reservation system Disadvantages of chain companies Need to establish brand loyalty Inter-town offerings by same chain Costly mandatory capital improvements

The Eight Ps of Hospitality Marketing Product People Packaging Programming Place Partnership Pricing Promotion