The Lodging Industry Explain how the travel and tourism industry can be categorized, and classify hotels

in terms of their size and target markets. 2. Classify hotels in terms of their levels of service, and
ownership and affiliation. 3. Describe characteristics of business, pleasure/leisure, group, and
international travelers. 4. Identify factors that influence travelers’ buying decisions. 5. Describe how
hotels can become more ecologically responsible and the incentives they have to do so. Managing Front
Office Operations PowerPoint 1 Competencies for The Lodging Industry

2. Chapter 1: The Lodging Industry The travel and tourism industry consists of five parts: • Lodging
operations • Transportation services • Food and beverage operations • Retail stores • Activities
Managing Front Office Operations PowerPoint 2 The Travel and Tourism Industry

3. Chapter 1: The Lodging Industry • The hospitality industry is part of the travel and tourism industry. •
The hospitality industry consists of lodging; food and beverage operations; and institutional food and
beverage services. Managing Front Office Operations PowerPoint 3 The Hospitality Industry

4. Chapter 1: The Lodging Industry Hotels can be classified by: • Size • Target markets • Levels of service
• Ownership and affiliation Managing Front Office Operations PowerPoint 4 Classifying Hotels

5. Chapter 1: The Lodging Industry • Under 150 rooms • 150 to 299 rooms • 300 to 600 rooms • More
than 600 rooms Managing Front Office Operations PowerPoint 5 Hotel Size Categories

6. Chapter 1: The Lodging Industry • Two of the most important marketing challenges for a lodging
property are: “Who stays at our property?” and “Who else can we attract?” • Lodging properties seek to
identify target markets. • Target markets are distinctly defined groups of travelers that the hotel seeks
to retain or attract as guests. Managing Front Office Operations PowerPoint 6 Target Markets

7. Chapter 1: The Lodging Industry • Commercial hotels • Airport hotels • Suite hotels • Extended-stay
hotels • Residential hotels • Resort hotels • Bed-and-breakfast hotels Managing Front Office Operations
PowerPoint 7 Types of Hotels, Classified by Market Segment • Vacation ownership and condominium
hotels • Casino hotels • Conference centers • Convention hotels • Alternative lodging properties
(recreational vehicle parks, campgrounds, mobile home parks, corporate lodging, cruise ships)

8. Chapter 1: The Lodging Industry • Located in the towns and cities they primarily serve • Often located
near train stations in the nineteenth and early twentieth centuries • Located in downtown or business
districts today • Largest group of hotels Managing Front Office Operations PowerPoint 8 Commercial
Hotels

9. Chapter 1: The Lodging Industry • Complimentary newspapers • In-room coffee makers • Free local
calls • Cable television, DVD players/DVDs, video games • Personal computers, high-speed Internet
access • Ergonomic desks and chairs • Fax machines • Car rental arrangements, airport pick-up services
Managing Front Office Operations PowerPoint 9a Commercial Hotel Guest Amenities Continued

10. Chapter 1: The Lodging Industry Commercial Hotel Guest Amenities Continued from previous slide…
• Twenty-four-hour food service • Semi-formal dining rooms; cocktail lounges • Conference rooms,
guestroom suites, room service, banquet meal service • Laundry/valet service • Concierge service • In-
room refreshment centers • Retail stores • Pools, health clubs, tennis courts, saunas Managing Front
Office Operations PowerPoint 9b
11. Chapter 1: The Lodging Industry • First airport hotels built in 1950s as air travel became popular •
Airport hotels are built in major travel centers • Wide variety of sizes and levels of service • Target
markets: business travelers, airline passengers with travel layovers/canceled flights, and airline
personnel • Many feature conference rooms • Offer convenience, cost savings Managing Front Office
Operations PowerPoint 10 Airport Hotels

12. Chapter 1: The Lodging Industry • Fast-growing segment of the lodging industry • Feature
guestrooms with a living room or parlor area and a separate bedroom • Some guestrooms include a
kitchenette • Generally have fewer/more limited public areas than other hotels • Target markets:
people relocating to area, travelers who enjoy homelike accommodations; vacationing families, business
professionals Managing Front Office Operations PowerPoint 11 Suite Hotels

13. Chapter 1: The Lodging Industry • Similar to suite hotels • Designed for travelers who stay five nights
or longer • Usually do not provide food, beverage, or uniformed/valet services • Housekeeping services
may not be provided on a daily basis • Homelike atmosphere • Room rates often determined by the
length of a guest’s stay Managing Front Office Operations PowerPoint 12 Extended-Stay Hotels

14. Chapter 1: The Lodging Industry • Provide long-term or permanent accommodations in urban or

suburban areas • Located primarily in the United States • Declining in popularity; replaced in part by
suite and condominium hotels • Guest quarters generally include a sitting room, bedroom, and
kitchenette • In some states, guests who contract to live in a residential hotel are considered tenants •
May provide some or all of the services provided to guests in commercial hotels • A restaurant/lounge
may be located on the premises Managing Front Office Operations PowerPoint 13 Residential Hotels

15. Chapter 1: The Lodging Industry • Often chosen as the destination or vacation spot • Usually located
in an exotic location away from crowded residential areas • Usually feature recreational
facilities/activities and breathtaking scenery not typical of other hotels • Usually provide extensive food
and beverage, valet, and room services • Typically feature a leisurely, relaxed atmosphere • Strive to
provide enjoyable guest experiences to encourage repeat business and word-of-mouth referrals • Often
employ social directors Managing Front Office Operations PowerPoint 14 Resort Hotels

16. Chapter 1: The Lodging Industry • Appeal to specific travelers who enjoy certain architecture, art,
culture, special interests, and amenities • Most major lodging companies have entered this market
segment • Reflect the interests of their guests • Usually have 100 to 250 guestrooms, with limited or no
meeting space • Food service varies from world-class to mid-range • Building exterior, interior décor,
and guestroom design are all important to the success of these hotels Managing Front Office Operations
PowerPoint 15 Lifestyle Hotels

17. Chapter 1: The Lodging Industry • Sometimes called “B&Bs” • Range from converted small houses to
small commercial buildings with 20–30 guestrooms • Owner usually lives on the premises and serves as
the property manager • Breakfast ranges from a simple continental breakfast to a full-course meal •
Most only offer lodging and limited food service • Room prices tend to be lower than in a full-service
hotel Managing Front Office Operations PowerPoint 16 Bed-and-Breakfast Hotels

18. Chapter 1: The Lodging Industry • Sometimes referred to as timeshare or vacation-interval hotels •

People purchase ownership of accommodations for a specific period of time (usually one or two weeks a
year) • If owners do not stay during their time period, they can have the hotel’s management company
rent their units for them, receiving the rental money after paying fees to the management company for
this service • Owners can trade their ownership time with other owners in other locations • Each unit
has multiple owners Managing Front Office Operations PowerPoint 17 Vacation Ownership Hotels

19. Chapter 1: The Lodging Industry • Similar to vacation ownership hotels • Units in condominium
hotels have only one owner, instead of the multiple owners typical in vacation ownership hotels •
Owners tell the management company when they want to occupy their units; the company is free to
rent the unit for the remainder of the year • A portion of the rent from the unit goes to the unit’s owner
Managing Front Office Operations PowerPoint 18 Condominium Hotels

20. Chapter 1: The Lodging Industry • Feature gambling facilities • Guestrooms and food and beverage
operations are often luxurious, but they are secondary to the gambling operations • Cater to leisure and
vacation travelers • Attract guests by promoting gaming and headliner entertainment • Provide a broad
range of entertainment and recreation opportunities • May offer charter flights for guests who plan to
gamble • Gambling activities may operate 24 hours a day, 365 days a year • Some are very large, with
several thousand guestrooms Managing Front Office Operations PowerPoint 19 Casino Hotels

21. Chapter 1: The Lodging Industry • Specifically designed to handle group meetings • Provide all of the
services and equipment necessary for a meeting’s success • Often located outside metropolitan areas •
May provide extensive leisure activities Managing Front Office Operations PowerPoint 20 Conference
Centers

22. Chapter 1: The Lodging Industry • This segment has grown significantly in recent years • Often have
thousands of guestrooms • Can have 50,000 square feet or more of exhibit hall space, plus ballrooms
and meeting rooms • Offer a variety of dining facilities • Primarily directed toward business travelers
with a common interest • A full line of business services are generally available for guests • Host state,
regional, national, and international meetings • May book business up to ten years in advance Managing
Front Office Operations PowerPoint 21 Convention Hotels

23. Chapter 1: The Lodging Industry • Intangibility of service • Quality assurance • Rating services •
Economy/limited service Managing Front Office Operations PowerPoint 22 Basic Issues Pertaining to
Service

24. Chapter 1: The Lodging Industry • World-class service • Upscale • Mid-range service •

Economy/limited service Managing Front Office Operations PowerPoint 23 Types of Hotels, Classified by
Levels of Service

25. Chapter 1: The Lodging Industry • Independent hotels • Chain hotels • Management contract •
Franchise • Referral group Managing Front Office Operations PowerPoint 24 Types of Hotels, Classified
by Ownership and Affiliation

26. Chapter 1: The Lodging Industry • Business • Pleasure/leisure • Group • International Managing

Front Office Operations PowerPoint 25 Categories of Guests

27. Chapter 1: The Lodging Industry • Historically, the first and primary market for hotels • More than 35
million people take business trips each year • Business travelers average about five trips per year •
Business travelers account for a significant portion of lodging demand • Hotels design specific products
and services for business travelers--meeting space, offices, secretarial/computer services, in-room safes,
24-hour room service, Internet access Managing Front Office Operations PowerPoint 26 Business
Travelers

28. Chapter 1: The Lodging Industry • Specialized resort travel • Family pleasure travel • Travel by the
elderly • Travel by singles or couples • Price-sensitive Managing Front Office Operations PowerPoint 27
Pleasure/Leisure Travelers

29. Chapter 1: The Lodging Industry • Pleasure travel • Institutional meetings/conventions •

Corporate/government meetings/ conventions • Trade associations • Management meetings, sales
meetings, new product introductions, training seminars, professional/technical meetings, stockholder
meetings Managing Front Office Operations PowerPoint 28 Group Travelers

30. Chapter 1: The Lodging Industry • Different needs and expectations • Language barriers • Foreign-
born employees can be helpful in serving these guests Managing Front Office Operations PowerPoint 29
International Travelers

31. Chapter 1: The Lodging Industry • Satisfactory experiences with a hotel • Ads by a hotel or chain •
Recommendations by family members and friends • Hotel’s location • Preconceptions of a hotel based
on its name or affiliation • Travel management companies Managing Front Office Operations
PowerPoint 30a Buying Influences on Travelers Continued

32. Chapter 1: The Lodging Industry Buying Influences on Travelers Continued from previous slide… •
Ease of making reservations • Hotel’s quality of service, cleanliness, and appearance • Loyalty to a
particular property or brand • Frequent traveler programs • Website design (for travelers booking
online) Managing Front Office Operations PowerPoint 30b

33. Chapter 1: The Lodging Industry • Blogs: publically accessible chronicles or personal diaries • “B-
blog” is a blog dedicated to a business or business segment • Alternative blogs include discussion forums
and e-mail exchanges • Social networking sites facilitate interaction within an online or virtual
community • Social networking sites allow individuals or groups to create personal profiles to share with
others Managing Front Office Operations PowerPoint 31 Blogging and Social Networking

34. Chapter 1: The Lodging Industry • People increasingly interested in patronizing “green” hotels •
Government agencies, the Association of Corporate Travel Executives seeking “green” hotels • Green
hotel initiatives include: reducing greenhouse gas emissions, recycling, organic gardening, capturing
waste heat from power generators, using renewable energy sources, and educating guests about
environmental issues • Green initiatives are in place worldwide • LEED certification, Energy Star
program • Hotels engaged in energy management, water management, biodiversity management, and
waste management programs • Green meetings Managing Front Office Operations PowerPoint 32 The
Green Hotel