THE LODGING INDUSTRY. Standard 2: Objective 1 Hospitality and Tourism Marketing
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1 Standard 2: Objective 1 Hospitality and Tourism Marketing THE LODGING INDUSTRY Click here to play 25 Wackiest and Most Unique Hotels on Earth on YouTube
2 Evolution of the Hotel INN Ancestor to the hotel Small, people shared rooms AND beds. Cleanliness was a problem bed bugs/fleas! Indoor plumbing 1800 s
3 Hotel Industry Milestones U.S.A. and Canada First Hotels USA First grand hotel Boston s TREMONT HOUSE $2/day which included 4 meals! Mills House- Charleston, SC Oldest Hotel in the US atch?v=mtezeazbvmy
4 Hotel Industry Milestones cont. First No-frills motel Motel ($6/night) First Atrium Motel - Hyatt Regency in Atlanta Hotels traditionally were established near TRANSPORTATION CENTERS
5 Ellsworth Milton STATLER Started the Chain Hotel concept and private baths in each room. The slogan of his hotel business was The customer is always right. He provided comfort and convenience in his hotels. The original Statler Hotel in Buffalo, New York
6 César RITZ Greatest Hotelier of all time. Widely recognized as the pioneer of the luxury hotel. His motto was The customer is never wrong. Hotel Ritz, Paris Jaume Meneses
7 Conrad HILTON Sometimes called, The Biggest Hotel Man in the World He catered to the American Business Traveler Also opened up the Caribbean for leisure travel
8 Hotel Classifications Location Guest Type Price Style and Function
9 HOTEL Location Resorts great locations, lots of amenities/activities Airport business or leisure AND airline employees Freeway access usually for one night guests traveling to another destination Downtown (bigger cities) near shopping or business Conference Centers - conventions/meetings
10 HOTEL Guests Business Guests Business, conventions, meetings Leisure Guests Vacation for pleasure
11 HOTEL Price BUDGET (or Economy): Inexpensive, limited services (Comfort Inn, Motel 6) MID PRICE: More services than budget (Holiday Inn Express, Courtyard) UPSCALE (luxury): Great locations, many services and amenities (Grand America, Hyatt Regency)
12 HOTEL Style and Function All Suite: Larger rooms, separate living areas Extended Stay: More space for guests needing to stay for longer periods of time (kitchenettes)
13 HOTEL Style and Function Bed-n-Breakfasts: Fewer rooms, lots of personal service AND cooked breakfast. Often in large homes or small buildings of 3-12 rooms.
14 HOTEL Style and Function Spas: Health related services (Biggest Loser at Fitness Ridge)
15 HOTEL Style and Function Vacation Properties (Time Shares): Click to play video from YouTube
16 HOTEL Style and Function Retreat Centers: Click to play video from YouTube
17 Setting different prices for goods and services in an effort to maximize revenue when limited capacity is a factor. Yield Management
18 Yield Management Pricing Average Daily Rate (ADR) Revenue/ # of rooms sold = ADR $20,000/150 rooms sold = $134.00
19 Yield Management Pricing Occupancy percentage (OCC%) Number of rooms sold / # of rooms available = OCC% 150 rooms sold/ 200 rooms available = 75% Occupancy 175 rooms sold/ 200 rooms available = 87% Occupancy
20 Yield Management Pricing Revenue per available room (RevPAR) Revenue/total rooms available = RevPAR $20,000/200 rooms available= $ RevPAR is improved with each additional room sale. The revenue from each additional sale helps cover the fixed costs, but creates few additional variable costs.
21 Room Rate Variables Room size and amenities Location of the room (ocean view or parking lot) Number of people in the room Group, corporate or convention rate Taxes (each city is different), resort & service fees Season Cost of operation and quality of services Currency fluctuations
22 Hotel prices are quoted WITHOUT taxes, service charges or resort fees.
23 Hotel Room Rates Rack Rates price of a room originally Weekend Rates in cities, where business traveler s usually stay. Frequent-guest incentives rewards for members with each stay. Can earn points for free nights.
24 Anniversary Inn Assignment A N N I V E R S A R Y I N N V I D E O W I N V I A N C O T T A G E S V I D E O
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