Hotel Management Introduction. What is Hospitality? ▪ The reception and entertainment of guests,...

Hotel Management

Introduction

What is Hospitality?

▪ The reception and entertainment of guests, visitors, or strangers at resorts, clubs, conventions, attractions, special events; and other services for travelers and tourist.

What Is Hospitality?

▪ Many peoples’ definition of hospitality extends only to restaurants and hotels

▪ In reality, it goes far beyond this and includes any organization that provides food, shelter and other services to people away from home

▪ When viewed in this light, the hospitality industry can be quite large and far reaching

▪ Also, the numerous career opportunities become readily apparent

Primary Sectors

▪ So, what are some of the primary sectors within the hospitality industry? They include:

▪ Lodging (not just limited to traditional hotels)

▪ Foodservice (not just limited to restaurants)

▪ Gaming operations

▪ Private clubs

▪ Theme parks

▪ Destination management companies

Primary Sectors (continued)

▪ Meetings and conventions (planning and operations)

▪ Managed park environments (natural)

▪ Resorts

▪ Senior living

Tourism

▪Tourist travel and the services connected with it

Hospitality IndustryHospitality Industry Tourism IndustryTourism Industry

Institutional/Institutional/Welfare CateringWelfare Cateringe.g. Hospital e.g. Hospital

CateringCatering

CommercialCommercialAccommodationAccommodationServicesServices

e.g. Hotels, e.g. Hotels, Guest Houses Guest Houses

Transportation servicesTransportation servicese.g. Car Rental, e.g. Car Rental,

AirlinesAirlines

The following diagram shows the relationship between the hospitality and tourism industry. Can you think of more services with examples to add to the diagram?

Hospitality Industry

▪ Accommodations– Hotels– Resorts– Motels– B&B

▪ Transportation– Airlines– Cruise Ships– Car rentals

▪ Food and Beverage

▪ Attractions– Theme parks– Zoos– National, state, and local parks

Two main business sectors in the hospitality industry:

• Accommodation – To provide accommodation (and usually food and drink) to people who for whatever reason are away from home

• Food and beverage – To provide food and beverage to local, commuting, transient customers and tourists

Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier

Pearson Prentice Hall Upper Saddle River, NJ 07458

third largest retail industry following automotive & food storesnation’s largest service industryone of the nation’s largest employers

Tourism Industry

Hospitality Retail (Shopping) Stores

Transportation Services

Destination (Activity) Sites

Lodging is Part of Tourism Industry:Tourism Industry

Lodging Operation

F&B Operations

Tourism industry is

Figure 1.1: Segments in the Tourism Industry

Lodging/Accommodation

▪ To temporarily have a room in a hotel, motel, inn, bed & breakfast, or hostel.

There is no generic rule for classifying accommodation establishments globally. One method is to divide accommodation into two main groups:

Non-commercial Commercial

AccommodationAccommodation

Non-commercialNon-commercial CommercialCommercial

Private e.g. Private Home

e.g. Apartments

Private e.g. Private Home

e.g. Apartments

Non-profit e.g. Shelter

Non-profit e.g. Shelter

Institutional e.g. UniversityInstitutional

e.g. University

HotelsHotels

Figure 1: Accommodation structure



1900

Lodging is Part of Tourism Industry:A Brief History of Hotels

Figure 1.2 : Highlights in the modern history of the US hotel industry

1910

Fewer than 10,000 hotels

750,000 to 850,000 rooms

10,000 U.S. hotels

One million rooms

300,000 employees

Average size: 60-75 rooms

1920

Occupancy: 85%

Hotel construction reaches an all-time peak as thousands of rooms are added along the new state and federal highways



1930Occupancy: 65%

AHA’s Hotel Red Booklists 20,000 hotels

Lodging is Part of Tourism Industry:A Brief History of Hotels (continued….)

1940Occupancy: 64%

Average room rate: $3.21

1950Occupancy: 80%

Typical hotel: 17 rooms


1960

Occupancy: 67%

$3 billion in sales

Typical hotel rooms: 2,400,450

Typical hotel: 39 rooms, independent and locally owned





Lodging is Part of Tourism Industry:A Brief History of Hotels (continued….)

1970

Occupancy: 65%

$8 billion in sales

Total hotel rooms: 1,627,473


1980

Occupancy: 70%

$25.9 billion in sales






Lodging is Part of Tourism Industry:A Brief History of Hotels (continued…)

1990

2000Occupancy: 63%

$97 billion in sales

Occupancy: 64%

$60.7 billion in sales


45,020 properties





Overbuilt problem

Hoteliers should examine ways to reduce costs without impacting quality.An excessive emphasis on cutting service or product quality will ultimately result in reduced hotel revenue.

Managers should implement procedures to: a) reduce turnover levels, b) increase productivity levels, c) recruit from non-traditional employee labor markets.

Labor shortages

Current Issues confronting Hoteliers: Operating Issues

Cost containment

Increased competition



Various amenities (e.g., business centers) increase costs for hotel owners yet sometimes appeal to only a small segment of the hotel’s market.

Results in a more competitive selling environment for hoteliers (e.g., online room booking)

The more the number of brands increase, the harder consumers find it to differentiate between them.

Efforts to focus on a highly defined, smaller group of travelers.

Market segmentation is increasing

Current Issues confronting Hoteliers: Marketing Issues

Brands overlap

Increased sophistication of consumers

Increased number of amenities



Interactive reservation system- Allows potential guests to make reservations at preferred room rates in reduced timeGuestroom innovations- Two (or more) telephone lines enabling Internet access / interactive menu ordering for room service / electronic games and guestroom checkoutData mining technology- Analyzing guest- (and other) related data to make better marketing decisionsYield management- Matching guest demand with room rates

Recent technological innovations include:

Current Issues confronting Hoteliers: Technological Issues



“As goes the economy, so goes the lodging industry”

Impact of globalization on the lodging industry

Lodging industry is an integral part of the tourism industry- It is affected by the extent to which travelers, both within the country and worldwide travel

Facility Engineering & Maintenance

Economies of the world, the country, the state and the community play on the financial success of a lodging organization & the individual properties which comprise it.

Current Issues confronting Hoteliers: Economic Issues

OUTLOOK FOR HOSPITALITY

The outlook for the industry is very positive but there are several trends/factors that are affecting how the industry operates and the products and services that are offered to customers.

OUTLOOK FOR HOSPITALITY

The effects of September 11th and other recent events have resulted in:

▪ Travel restrictions

▪ Safety and security issues

▪ Cost of operations

▪ Government regulations

▪ Destinations that have been effected

Assignment- Due Tomorrow!

▪ Hotels and Wi-Fi article

▪ Some hotels charge $9.95-$19.95/ day

▪ $3.95 for more bandwidth

▪Wi-Fi cost the hotel around:

$3,000-$4,000/month for 100 megabits of data/sec

Hotel Management Introduction. What is Hospitality? ▪ The reception and entertainment of guests,...

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