1. Competition in the Lodging Business
Chapter Twelve

2. Conditions of Competition
Fragmented ownership
Cyclical industry
Low variable cost/high fixed-cost structure
Growth in securitization
Technological revolution

3. Upstairs Guests vs. Downstairs Guests
Comfortable rooms
Reduced service
Lower prices  
Downstairs Guests
Full service
Higher prices

4. Hotel Service Trends—By Segment
Luxury hotels: Many opening European-style bistros and brasseries
Upscale hotels: Most always include a top-of-the-line luxury restaurant
Economy hotels: Offer greatly simplified service
Midscale hotels: Often deemphasize or lease out food service

5. Service and Amenities Used to Differentiate One Property from Another
Concierge
Superfloor
Fitness/exercise facilities
Spa
Business center
Food service
Excellence in service

6. Services Provided by Lodging Franchisers
Design of basic business system
Quality assurance
Reservation system
Brand name

7. Ground Rules for Implementing Yield Management
Disclosure of rate structure and concessions offered should be available to customers.
Cancellation restrictions can be offered with a reduced rate, matching the customer’s benefit with the hotel’s.
Other reasonable restrictions can be offered in exchange for a favorable rate.
Different prices should be offered for products perceived to be different.

8. Organizations Supported by Tourism
Restaurants, hotels, motels, and resorts
All facets of transportation, including rental cars, airlines, travel agents, and gasoline service stations
National and state parks or recreation areas
Various private attractions
Organizations that support the above firms’ retail activities, including advertising companies, publications, transportation equipment manufacturers, and travel research and development agencies