1. The Early History of Lodging in Europe and America
Chapter 3

2. 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.

3. European Lodging Industry
Objective 1

4. 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
English Inns had good reputations
Increase in levels of service and cleanliness
The Pilgrim’s Guide – 1st book to refer best places to stay

5. 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

6. 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

7. 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

8. European Hotel Types
Objective 2

9. 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

10. U.S. Lodging Industry
Objective 3

11. U.S. Lodging Industry The Colonial Period 1794-1900
Inns were mainly located in seaports
Modeled after English Inns but innovative
Aggressive expansion
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

12. U.S. Lodging Industry (cont.)
New Developments
Emergence of Commercial Travelers
Improvements on roads, rail, and waterways
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”

13. 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

14. Independent vs. Chain
Objective 4

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

16. 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

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

18. Referral Associations & Consortia
Objective 5

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

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

21. Resort Hotels
Objective 6

22. 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