1. Standard 2: Objective 1 Travel and Tourism Marketing
The Lodging Industry

2. Evolution of the Hotel~
INN – Ancestor to the hotel
Small, people shared rooms AND beds. Cleanliness was a problem – bed bugs/fleas!
Indoor plumbing – 1800’s
Inn History

3. Hotel Industry Milestones
U.S.A. and Canada – First Hotels
USA First grand hotel – Boston’s TREMONT HOUSE. $2/day which included 4 meals!
Started the “Chain Hotel”
concept and private baths in each room –
Ellsworth Milton Statler
Greatest Hotelier of all time – Ce’sar Ritz-
Now the Ritz-Carlton

4. Hotel Industry Milestones cont.
First No-frills motel – Motel 6 – 1963 ($6/night)
First Atrium Motel - Hyatt Regency in Atlanta
Hotels traditionally were established near TRANSPORTATION CENTERS

5. Gaylord Opryland Hotel

6. Conrad HILTON… Sometimes called, “The Biggest Hotel Man in the World”
He catered to the American Business Traveler
Also opened up the Caribbean for leisure travel
Biography

7. Hilton Brands Conrad Hotels Hilton Hotels Doubletree Hilton Worldwide
Embassy Suites Hotels
Home2 Suites by Hilton
Hampton Hotels
Homewood Suites by Hilton
Hilton Garden Inn
Waldorf Astoria
Hilton Hhonors

8. Hotel Classifications
Location
Guest Type
Price
Style and Function

9. HOTEL Location Resorts – great locations, lots of amenities/activities
Airport – business or leisure AND airline employees
Freeway access – usually for one night guests traveling to another destination
Downtown (bigger cities) – near shopping or business
Conference Centers - convention/meetings

10. HOTEL Guests
Business Guests – Business, conventions, meetings Leisure Guests – Vacation for pleasure

11. HOTEL Price
BUDGET (or Economy): Inexpensive, limited services (Comfort Inn, Motel 6)
MID PRICE: More services than budget (Holiday Inn Express, Courtyard)
UPSCALE (luxury): Great locations, many services and amenities (Grand America, Hyatt Regency)

12. HOTEL Style and Function
All Suite: Larger rooms, separate living areas
Extended Stay: More space for guests needing to stay for longer periods of time (kitchenettes)
Bed-n-Breakfasts: Fewer rooms, lots of personal service AND cooked breakfast.

13. Bed & Breakfast
Anniversary Inn

14. HOTEL Style and Function
Spas: Health related services (Biggest Loser at Fitness Ridge)
Vacation Properties (Time Shares): Guests can “buy” a lodging location for period of time
Retreat Centers: Business travelers who want a secluded location.

15. Yield Management
Setting different prices for goods and services in an effort to maximize revenue when limited capacity is a factor.

16. Yield Management Pricing
Average Daily Balance (ADR)
Total sales / total number of rooms = ADR
Occupancy percentage (OCC%)
Number of rooms sold / # of rooms available = OCC%
Revenue per available room (RevPAR)
Revenue / total rooms available = RevPAR

17. Room Rate Variables Room size and amenities
Location of the room (ocean view or parking lot)
Number of people in the room
Group, corporate or convention rate
Taxes, (each city is different), resort & service fee’s
Season
Cost of operation and quality of services
Currency fluctuations

18. Hotel prices are quoted WITHOUT taxes, service charges or resort fee’s.

19. Hotel Room Rates Rack Rates – price of a room “originally”
Frequent-guest incentives – rewards for members with each stay. Can earn points for free nights.
Weekend Rates – in cities, where business traveler’s usually stay.