Introduction to the Lodging and Travel Industries Chapter 1 Introduction to the Lodging and Travel Industries Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

The Early Lodging Industry The Lodging Industry is the total of all the businesses that provide overnight accommodations for guests. A Hotel is an establishment that provides sleeping rooms as well as various services to the traveling public. A Hotelier is an owner/manager of one or more hotels. A Tourist is an individual who travels for pleasure. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

United States Hotel Industry 1900-2000 American lodging facilities have evolved to include a tradition of innovation and orientation to guest service. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Segments in Lodging Industry Value (Lodging Accommodations) is the price paid to rent a room relative to the quality of the room and services that are received. Full-Service Hotel: a lodging facility that offers complete food and beverage services. Room Service: food and beverages that are delivered to a hotel guest’s sleeping room. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Segments in Lodging Industry Limited-Service Hotel: a lodging facility that offers few, if any, food and beverage services. Hospitality Industry: refers primarily to organizations that provide lodging accommodations and food services for people when they are away from their homes. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Segments in Lodging Industry Bed and Breakfast Inns: very small (one to several guest rooms) properties owned or managed by persons living on-site; these businesses typically offer one meal a day; also called B&B. Camps/Park Lodges: sleeping facilities in national, state, or other parks and recreational areas that accommodate visitors to these areas. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Segments in Lodging Industry Extended–Stay Hotel: a mid-priced, limited-service hotel marketing to guests desiring accommodation for extended time periods. Convention Hotel: a lodging property with extensive and flexible meeting and exhibition spaces. Conference Center: a specialized hospitality operation specifically designed for and dedicated to the needs of small- and medium-sized meetings of 20 to 100 persons. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Segments in Lodging Industry Resort: a full-service hotel with additional attractions that make it a primary destination for travelers. Timeshare: a lodging property that sells its rooms to guests for use during a specific time period each year; also called vacation ownership property. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Segments in Lodging Industry Private Club: membership organizations not open to the public that exist for persons enjoying common interests. Cruise Ship: a passenger vessel designed to provide leisure experiences for persons on vacation. Casino: a business operation that offers table and card games along with (usually) slot operations and other games of skill or chance and amenities that are marketed to customers seeking gaming activities and entertainment. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Measuring Hotel Performance Average Daily Rate (ADR) is the average (mean) selling price of all guest rooms in a hotel, city, or country for a specific period of time. ADR = Total Revenue from Room Sales Total Number of Rooms Sold Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Measuring Hotel Performance Occupancy Rate is the ratio of guest rooms sold (or given away) to guest rooms available for sale in a given time period. It is always expressed as a percentage. Occupancy Rate = Total Rooms Sold Total Rooms Available Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Measuring Hotel Performance Revenue Per Available Room (RevPar): the average revenue generated by each guest room available during a given time period; the formula for RevPar is: occupancy percent (x) ADR. Commonly referred to as “RevPar.” Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Travelers and the Travel Industry The tourism industry consists of: Hospitality: the food and beverage and lodging operations (including hotels) that feed and house travelers. Retail (Shopping) Stores: the stores and shops that appeal to travelers. Transportation Services: those businesses such as bus lines, airlines, rental car companies and others that help move travelers from place to place. Destination Sites: those locations offering activities and attractions enjoyed by travelers. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Travelers and the Travel Industry Two different types of travelers: Leisure Travelers Business Travelers Tend to look for Amenities: hotel products and services designed to attract guests. Examples: Fax and copying services In-room hair dryers Microwave ovens Indoor pools Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Partners in the Lodging Industry Transportation Travel Agents Tour Operators Web Site Operators Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Partners in the Lodging Industry Transportation Airlines Hotel Shuttle: a vehicle used by a hotel to transport guests to and from destinations such as airports, restaurants, and shopping. Hub: typically, a big-city airport within a short driving distance of a very large population center. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Partners in the Lodging Industry Transportation Bus Lines Types Include: Economy Deluxe Motor Coach Executive Motor Coach Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Partners in the Lodging Industry Transportation Trains “Amtrak” www.Amtrak.com Rental Cars Frequently rented after arrival by plane This industry includes all businesses that rent or lease cars, vans, trucks, and utility trailers. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Partners in the Lodging Industry Travel Agent: A professional who assists clients in planning and purchasing travel. Most commonly used by people who are: Older Wealthier Taking Longer Trips Traveling More Frequently Package: a group of travel services such as hotel rooms, meals and airfare sold for one price. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Partners in the Lodging Industry Travel Agent Global Distribution System (GDS): The computer system that connects traveling professionals worldwide who reserve rooms with hotels offering rooms for sale. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Partners in the Lodging Industry Tour Operators: companies or individuals that plan and market travel packages. Put together, market, and sell the packages that are recommended by travel agents. Guided Tour: a group tour package that includes the services of one or more tour guides. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Partners in the Lodging Industry Tour Operators Hoteliers interact with tour operators in the following ways: Negotiating hotel rates Hosting tour package buyers Assisting travelers who experience difficulties Working with travel agents to market tours Providing hotel service levels high enough to ensure a continued positive relationship between the tour operator and the hotel Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Partners in the Lodging Industry Web Site Operators On-line Distribution: the buying and selling of hotel rooms via the Internet. Hotels can create their own Web sites and sell rooms directly or use intermediary Web site operators such as Expedia and Travelocity. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Partners in the Lodging Industry Web Site Operators Three types of Web site operators: Traditional Direct-to-Guest Model Opaque Rate Model Merchant Model It is estimated that by 2005, over 20% of all hotel bookings will be completed on the Internet. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Trade Associations Professional Development: the process by which hoteliers continue to improve their knowledge and skills. Trade Show: an industry-specific event that allows suppliers to an industry to interact with, educate, and sell to individuals that are part of the industry; also called exhibition. Vendors: those who sell products and services to hoteliers. Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Trade Associations Some of the best trade associations include: The American Hotel and Lodging Association www.ahla.com The Asian American Hotel Owners Association www.aahoa.com The International Hotel and Restaurant Association www.ih-ra.com The Educational Institute of the American Hotel and Lodging Association www.ei-ahla.org Hayes/Ninemeier: Foundations of Lodging Management. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.