Instructor Ma nual For Foundations of Lodging Management Second Edition David K. Hayes Ja ck Ninemeier Allisha A. Miller 1 / 4
Chapter 1 Lecture Outline:
Introduction to the Lodging Industry Learning Objectives
- To describe how the lodging industry has developed over its long history
- To explain how individual hotel properties in the lodging industry are classified
- To explain how the lodging industry measures its success
- To describe how the lodging industry is related to the larger hospitality and travel and tourism
- To identify and explain the importance of industry trade associations.
industries
The Early Lodging Industry Lodging Industry: All businesses that provide overnight accommodations for guests. Hotel: An establishment that provides sleeping rooms as well as various services to the traveling public.
Hotelier: The owner/manager of one or more hotels.
Tourist: A person who travels for pleasure.
United States Lodging Industry: 1900 – 2010
American lodging facilities have evolved to include a tradition of innovation and orientation to guest service worth noting. Lodging Industry Segments Different types of lodging are available are based on different guests needs, below are some
definitions of different types of hotels and types of amenities:
Value (Lodging Accommodations): The price paid to rent a room relative to the quality of the room and services that are received. Full‐Service Hotel: A lodging facility that offers complete food and beverage services. Room Service: The delivery of food and beverages to a hotel guest’s sleeping room. Limited‐Service Hotel: A lodging facility that offers no, or very restricted, food and beverage services. Also known as a “select service hotel”. Bed and Breakfast Inns: Very small properties (one to several guest rooms) owned or managed by persons living on‐site; these businesses typically offer one meal a day; also called B&B. Camps/Park Lodges: Sleeping facilities in national, state, or other parks and recreational areas that accommodate visitors to these areas. 1 2 / 4
Extended‐stay hotels: A moderately priced, limited‐service hotel marketing to guests desiring accommodation for extended time periods (generally one week or longer). Convention hotel: A lodging property with extensive and flexible meeting and exhibition spaces that markets to associations, corporations, and other groups bringing people together for meetings. Conference center: A specialized hospitality operation specifically designed for and dedicated to the needs of small‐ and medium‐sized meetings of 20 to 100 people. Resort: A full‐service hotel with additional attractions that make it a primary destination for travelers. Timeshare: A lodging property that sells its rooms to guests for use during a specific time period each year; also called vacation ownership property. Private clubs: Membership organizations not open to the public that exist for people enjoying common interests. Examples include country (golf) clubs, city clubs, university clubs, yacht clubs, and military clubs. Some private clubs offer sleeping rooms for members and guests. Cruise lines: Passenger vessels designed to provide leisure experiences for people on vacation. Casino: A business operation that offers table and card games along with (usually) slot operations and other games of skill or chance and amenities that are marketed to customers seeking gaming activities and entertainment. Many casinos offer lodging accommodations for their visitors. Measuring Hotel Performance Owners and managers of all sizes are interested in how best to evaluate their effectiveness in meeting the needs of their guests.
Various measurements used by hoteliers are:
ADR
Occupancy RevPAR
GOPPAR 2 3 / 4
ADR Average Daily Rate (ADR): The average (mean) selling price of all guest rooms in a hotel, city, or country for a specific period of time. Total Revenue from Room Sales Tota Occupancy l Number of Room Sold
=ADR
Occupancy rate: The ratio of guest rooms sold (or given away) to the number of guest rooms available for sale in a given time period and expressed as a percentage. Total Rooms Sold Total Rooms Available =Occupan y Rate c RevPAR RevPAR: The average revenue generated by each guest room available during a specific time period. RevPAR combines the information from ADR and occupancy rate into a single measure.
GOPPAR
ADR (x) Occupancy Rate = RevPAR GOPPAR: The amount of profit made from room sales divided by the number of rooms available to sell. Gross Operating Profit Rooms Available to Sell
=GOPPAR
Lodging and the Hospitality Industry Hospitality industry: Organizations that provide lodging accommodations and food services for people when they are away from home. Lodging and the Travel and Tourism Industry Hospitality: The food and beverage and lodging operations (including hotels) that house and feed travelers. Retail (Shopping) Stores: Stores and shops that appeal to travelers. Transportation Services: Businesses that help move travelers from place to place. Examples include bus lines, airlines, and rental car companies. Destination (Activity) Sites: Locations offering activities and attractions enjoyed by travelers. 3
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