1. Introduction to Hotel Management
3 credits
Time:pm , Friday
Place:C325

2. Ch1 Lodging Industry Classification

3. SECTION1 Classified by Types of Service
SECTION2 Classified by Target Market
SECTION3 Classified by Ownership

4. SECTION1 Classified by Types of Service
Full-Service Lodging
Intermediate-Service Lodging
Limited-Service Lodging

5. Full-Service Lodging Luxury and Upscale
Services Provides by the Five Star Hotel
Wide Public Area, Multiple Choices of Restaurant
Executive Floor
Provide higher standard facilities and extra services
Provide Bar and free drink

7. Full-Service Lodging Two Important Characters
Provide luxury facilities
Provide customized services

8. Intermediate-Service Lodging
Scale: 150~300Hotel Rooms
Target Market: Domestic Mass Tourism
Provide “good” services, but not “luxury” services

9. Limited-Service Lodging
Clean, Cheap, Comfortable
Guest Rooms: Satisfied the basic need of customers
Not Provided: Baggage Service, Banquet Hall, Business Center, Leisure Facilities
Limited beverage services

10. Example: JingJiang Star Hotel Chain in China

11. Section2 Classified by Target Market
Commercial Hotel
Convention Hotel
Casino Hotel
Airport Hotel
Motel

12. Residential Hotel
Resort
Time-share
Others

13. Commercial Hotel
In the century of railroad, its location is usually near the railroad station.
Car & Highway, MRT
Right Now, most located at city center or business district.
Major customers are business travellers.
Package tourists, individual tourists and convention tourists are also target market.
For Example: Tainan’s Cambridge Hotel

14. Convention Hotel
More than 40% international conferences are held in hotel (ICCA, 2012)
Successful tourist destination is the necessary condition for the success of the MICE industry and convention hotel.(Amy Chan, 2009)
Convention city in Asia: Singapore, Kuala Lumpur, Hong Kong, Bangkok
Meeting + Tourism = Incentive tourism

15. Convention Hotel Enough Hotel Rooms (Scale)
Exhibition Hall and Banquet Hall are necessary.
Qualified Conference Rooms and Facilities(video conference, wireless internet, translation equipment, and fax)
Entertainment Facilities(golf course, swimming pool, Spa)
Services of VIP and the accompany person
Need of Disables and Minority People
Experienced Hospitality and Critical Service Behaviors

16. Casino Hotels Casino is the main body, and hotel is the sideshow.
Keep the customers stay at the casino.
Hotel is luxury, but is not expensive.
Taiwan and Singapore both emphasize complex development as the policy. (hotel, casino, golf course, shopping mall, stadium )

17. Casino Hotels Provide luxury facilities and man-made theme.
Emphasize customer satisfaction, but not occupation rate and Revpar.
Provide large scale of hotel rooms (more than 4000 is not unusual).
Held international entertainment events to attract customers.

18. Airport Hotel Lacation: near by the airport
Target Market: Transfer traveller, business traveller, crews of airlines company
Facilities: emphasize leisure facilities
Operation: 24 hours services (at least beverage service)
Examples: Novotel Taoyuan (China airlines ), Evergreen Taoyuan (Evergreen airlines)

19. Motels Born for the traveller in the car and highway century
Mainstream: cheap price and limited services
However, Taiwan has some luxury motels in urban area.(swimming pool, luxury bathtub)

20. Residential Hotel “Home” for business or vacation travellers
Guest Room Design: Kitchen, Living Room and Bed Room
Easy to be transformed into apartment or office
Gradually replaced by rented apartment and full-serviced hotel

21. Resort Location: natural or man-made landscape
Facility: self-sustained, different kinds of leisure facilities for all age groups
Operation
Emphasize cross-training employee
Emphasize relax miliu
Overcome low season and high season problem
Emphasize local public relation

22. Timeshare Own one or several weeks of vacation right every year
Consumption and Investment
Exchange company: RCI, II
Flexible Development of point system:
Marriott Vacation Club International
Hilton Grand Vacations
Guest Room Design: Connecting Room
High Service Standard: most customers are owners

23. SECTION3 Classified by Ownership
Independent Hotel
Management Contract
Franchise Agreements
Free Alliances

24. Independent Hotel Unique Structure of Ownership Strength:
Concentrated power means efficient decision-making.
Easy to merge corporate culture and organizational strategy.
Weakness:
Lacking of economy of scale to reduce cost.
Lacking of brand to establish customer’s loyality.

25. Independent Hotel Tempus Hotel (Taichung)
Han-Hsien International Hotel (Kaohsiung)
Santos Hotel (Taipei)

26. Management Contract Owner + Hotel Management Company(HMC)
HMC provides development and management knowledge.
Owner monitors the hotel operation by controlling human resource and accounting departments.

27. Management Contract Owner + Hotel Management Company(HMC)
Taiwan Sugar Company + Evergreen (HMC)
Ta-yi Group Landis (HMC)

28. Management Contract Strength:
Provide a way for hotel chains to expand by low -cost.
Avoid HMC to take financial risk .
Weakness:
HMC receives limited financial return from increased hotel value.
Change of owners usually cause the failure of management contract.

29. Franchise Agreements
Develop operational standard, job breakdown and SOP
Strong Brand and Reputation
Sharing reservation system, purchasing power, marketing activities and management knowledge

30. Franchise Agreements Brand v.s Hotel Chains International Brand:
Sheraton, Hilton, Marriott, Hyatt, Westin,
Intercontinental, Four Seasons, Novotel
Domestic Brand:
Landis, Evergreen, Howard, Formosa
International, Royal, Chinatrust

31. Franchise Agreements Strength:
Have lower cost to get a reservation system.
Spend less money for marketing.
Have the benefit of brand loyalty.
Share the R&D product, innovation knowledge and mature training system.
Weakness:
Owner has to sacrifice some sovereignty to follow the rules and performance standards of the brand.
Owner has to pay financial cost to join and stay in the hotel chains.

32. Free Alliances Unify some independent hotels to build a new union.
Strategic Alliances
Jointed Marketing
Introduce guests to partner hotels
Opportunity to increase purchasing power and lower purchasing cost
Hotel + B&B + Hot Spring Resort
(for example: Taiwan’s Backpacker Inc. )

33. Thank you for listening