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

2. 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.

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

4. Influences Affecting the Hotel Industry
Political
Psychological
Socioeconomic
Technological
Economic

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

6. 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

7. 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

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