The Early History of Lodging in Europe and America Chapter 3

Chapter 3 Objectives Trace the origins of the European Lodging Industry. Characterize the 3 hotel types that were crafted as the first market segmentations. Outline the history of the U.S. Lodging Industry. Independent Hotels vs. Chain Hotels Referral Associations and Consortia Resort Hotel characteristics and how they stay open all year.

European Lodging Industry Objective 1

European Lodging Industry The Origins Travelers were mercenaries, clergy, and merchants No Full-time innkeepers, had other trade/duties Rarely comfortable but inexpensive Passed down generation to generation Early inns are still around today as Hostelries 1750-1825 English Inns had good reputations Increase in levels of service and cleanliness The Pilgrim’s Guide – 1st book to refer best places to stay

European Lodging Industry (cont.) The Grand Tour The Golden Age of Travel Late 18th century Education of children from wealthy families Long term trip to learn other cultures The Professional Hotelier Evolved in Mid 1800’s Cesar Ritz

European Lodging Industry (cont.) Early Hotel Schools Late 19th century – early 20th century Part on the job and part in a classroom Hotels selected students, certificates awarded Students worked hard with little pay

European Lodging Industry (cont.) New Era Improvement of transportation Funiculars (cable railways) Able to get to resort like destinations Decades of Difficulties 1930s – tensions leading up to war 1940s – World War II destruction 1950s – Steady and Slow Growth

European Hotel Types Objective 2

European Hotel Types First distinct attempt at Market Segmentation Market Segmentation is considering different types of travelers based on their needs and wants Transit Economical and efficient accommodations Typically short term travelers Vacation Mineral Springs or Spas Pursuit of health and pleasure Grand Luxurious accommodations and personal service

U.S. Lodging Industry Objective 3

U.S. Lodging Industry The Colonial Period 1794-1900 Inns were mainly located in seaports Modeled after English Inns but innovative Aggressive expansion 1794-1900 The City Hotel – first building erected as hotel The Tremont House - 1st First-Class Hotel Private Rooms with locks, Bowl/Pitcher and Soap Hotel Boom – Westward Movement Goal to build better, larger, and more luxurious

U.S. Lodging Industry (cont.) New Developments Emergence of Commercial Travelers Improvements on roads, rail, and waterways 1900-1930 Buffalo Statler - First Commercial Hotel in 1908 Modernized with fire doors, keyholes for door locks, light switch just inside the door, private baths, newspaper “A room and a bath for a dollar and a half”

U.S. Lodging Industry (cont.) 1930’s: The Depression Empty hotels and at an all time low Rate Wars Liquidation of properties 1940’s: WWII and the Aftermath War created travel for defense purposes Hotels operated at 100% occupancy daily 1950’s and Early 1960’s Motel Boom

Independent vs. Chain Objective 4

Independent vs. Chains Independents No Chain Affiliation Free to make all decisions about hotel Must survive on their own

Independent vs. Chains (cont.) Affiliated with other properties Can be owned and operated by Chain Can be privately owned but managed by Chain Can be privately owned and managed but is a franchise of the Chain

Independent vs. Chains (cont.) Advantages of Chains Purchasing Human Resources Marketing Reservations Financing Centralized Accounting Loyalty Programs Distribution Systems

Referral Associations & Consortia Objective 5

Referral Organizations Membership Organization Non-profit Basis Consisted of Independent Hotel Operators Joint efforts in marketing and promotions

Consortia Marketing Organizations Consist of Chains and Independents Today, they represent 2.8 million room nights in 17,000 hotels Examples Utell / Unirez SynXis

Resort Hotels Objective 6

Resorts Characteristics Seasonality vs. Year Round Focus on Leisure Travelers Offers recreational activities Seasonality vs. Year Round Resorts tended to close during off-peak months Eventually, the evolved to stay open year-round Built conference facilities to attract corporate Offered special events and festivals