Chapter 11 Accommodation

This lecture will give you: An opportunity to identify and assess the scope of the hospitality industry; An understanding of the structure of the accommodation sector, the role of brands and the different ownership models that predominate;

This lecture will give you: An overview of the sector’s historical development and the effect of this on today’s operation; and An appreciation of the unique factors and key issues that dominate the sector today and that will influence its future development.

Introduction Accommodation provides a support service for the wider motivation which has brought a visitor to a destination. Accommodation is a necessary component within any destination that seeks to serve visitors other than day trippers.

Introduction The diversity ranges from bed & breakfast facilities to the hotels that operate with a capacity to cater up to 5,000 guests. Accommodation may range from a very basic, functional form, to extreme luxury and opulence (wealth).

Introduction Ownership can be private and informal, or operated by major multinational chains. Some facilities meet only basic needs of travelers, while some meets various requirements and motivations, such as business, conventions, leisure and pilgrimage.

Introduction Accommodation plays an important role in the overall economic contribution made by tourism. Demand for accommodation is extremely volatile and accommodation providers adopt a flexible approach to pricing in order to maximise occupancy.

Types of Accommodation Providers (1) Hotels Most significant and visible sub-sector; Major employer in the industry; Dominated by small, family-run operations offering a variety of accommodation types; Groups or chains of hotels account for about 10 % of total accommodation; The major chains continue to grow in terms of number of hotels and number of rooms;

Types of Accommodation Providers (1) Hotels Ownership and management reflect the growing complexity. There are three major operating models; Hotel companies may own and operate the hotel that are marketed under their name The hotel may be operated and owned by a franchise partner The hotel company may manage the property on behalf of owner – Hilton, Hyatt, Marriot

Classification of Hotels classificationofhotels.ppt http://www.slideshare.net/Shantimani/classification-of-hotels#btnPrevious

Types of Accommodation Providers (2) Guesthouses, bed and breakfasts, farmhouse accommodation, inns – provide limited facilities and food and beverage. Self catering accommodation, apartments, cottages, sites – comprise accommodation, recreational facilities and food preparation facilities. Campus accommodation – provides student accommodation during semesters and reasonably priced accommodation to tourists at other times.

Types of accommodation providers (3) Time share – very popular in Mediterranean holiday resorts, this provides the opportunity to own an apartment for a week or two per year. Youth accommodation – YHA and backpackers’ accommodation. This is very popular in Australia where backpackers form approximately 10 % of all international tourists.

Types of accommodation providers (4) Camping and caravan sites – ranging from basic fields with few amenities to sophisticated resorts. Medical facility accommodation – providing accommodation for the increasingly important medical tourism industry. Cruise liners and ferries/Trains and aircraft – increasingly viewed as a threat to the more traditional accommodation providers.

The distinctive nature of accommodation Accommodation is distinct from other industries in three areas: It comprises both tangible (product) and intangible (service) factors; The production and consumption of accommodation is inseparable and the guest must be present at both production and consumption; Accommodation is highly perishable and cannot be stored for future sale.

The management of commercial accommodation Two fairly unique aspects of accommodation management are: Overbooking – the act of selling more rooms than are available as a means of ensuring all rooms are occupied; Yield management – aims to maximise revenue by selling rooms to particular markets at the best price.

Sectoral overlap Many operations provide a range of products and services in addition to accommodation. For example a resort may include a casino, a golf course, a range of food and beverage facilities and even retail outlets. However some accommodation providers exist in relative isolation, e.g. budget hotels, self catering cottages and campsites. An important trend in accommodation provision is the separation of accommodation from other products, e.g. the popularity of budget hotels.

Quality issues and grading The heterogeneity of accommodation makes meaningful comparisons difficult. Grading is undertaken by either the national tourist board or the regional automobile association. Accommodation is either Classified (i.e. type of property) or Graded (i.e. quality of provision).

Quality issues and grading The assessment of the quality of accommodation is peculiar to the host country. At best, the grading of an accommodation provider will present a guide to national standards. New categories of accommodation providers (e.g. Boutique hotels and budget hotels) have further complicated the grading process.

Budget accommodation In response to customer demand, hotel chains have been developing Budget Accommodation. Located in cities near major roads or at airports, a budget hotel will provide a quality room with private facilities, but with limited service provision. Normally, such hotels will not have any food and beverage outlets.

The accommodation sector and environmental issues (1) Water use - much of the water used by tourists is within accommodation units. However in certain areas, the maintenance of gardens and golf courses can have a significant impact on other industries. Energy use – Any reduction in the use of energy will have financial as well as environmental benefits.

The accommodation sector and environmental issues (2) Recycling – Accommodation providers can assist in this area by the re-use of paper and plastics, the avoidance of disposable products and the replacement of individual shampoo sachets(bags) with dispensers. Waste disposal – accommodation providers are becoming more aware of the effective disposal of the large amounts of waste they produce.

Information technology and the accommodation sector Accommodation providers are increasingly influenced by developments in the IT sector at two levels: Unit level – technology used as a tool to effectively manage physical, human and financial resources; Macro level – technology used as a tool to manage global reservation systems.

Human resources and the accommodation sector The provision of accommodation is very labour intensive. The effective management of human resources continues to form a major focus of accommodation providers. Accommodation provides employment opportunities for people with a wide variety of skills and aptitudes (abilities).

Conclusion Accommodation is an important aspect of the wider tourism provision. Comprises an extreme variety of providers. Distinctive nature of accommodation provision – intangibility, inseparability and perishability. Overbooking and yield management. Issues concerning classification and grading. Environmental, information technology and human resource issues.

Related Web Sites http://www.ehotelier.com http://www.shangri-la.com http://www.wiredhotelier.com

End of Chapter Slides